It doesn’t matter if it’s strategic, human resources, financial or governance related, board decision-making involves carefully weighing of a range of information. This is especially true for the more complicated issues that a board might have to deal with, like M&A or strategic decisions.

To be able to comprehend the risks and form an opinion about the risks, these kinds of issues require a great deal of qualitative input. This level of detail must be managed with care to avoid the decision-making process slowing down or becoming time-consuming. These decisions can be addressed in more specific sessions of the board or in a specific workshop. This can save time and energy in other discussions on strategic levels.

A crucial aspect of good decision-making is making sure that the right individuals are present when board members discuss the subject. The emergence of groupthink and the tendency for boards to stamp their approval on any decision that is brought to them could result in grave consequences. It is recommended that boards take the initiative to examine every formal decision they receive to determine if the decision is appropriate for the particular situation.

In order to do this it is important for boards to consider the various decision-making models that are available. These vary in the degree of complexity, but all have strengths and weaknesses. It is a good idea for an executive board to discuss with its management team the pros and cons of each framework to determine which one is the best fit for a specific decision.

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