To make effective decisions in a boardroom, you require a combination of open discussion, strategic analysis and technology. When executed correctly these strategies can drastically elevate a board’s decision making capacity and result in long-term sustainability for the organization.

The first step is gathering all information available and ensure that it’s authentic, complete, reliable and comprehensive. This is the management’s job and includes gathering data from both internal and external sources. It also includes conducting research and ensuring that the board is provided with timely, comprehensive information.

After the data has been gathered the next stage is to find the potential options that could solve the issue. This can be a long process, particularly when trying to reach consensus. Some boards use methods like the Six Thinking Hats Method or Disney Planning Method in order M&A transactions to avoid groupthink and encourage all options of ideas to be taken into consideration.

The board has to decide which option to pursue. This usually involves a variety of elements, including cost, impact and the scope. Scope can be measured in terms of years, dollars or the number of people affected (e.g. clients, clients or staff). It is beneficial to have a framework that connects these criteria with the board’s general governing principles that govern the company.

After the decision is taken the board must announce the decision in the minutes and detail how the decision was reached. The document should include a rationale for the choice and a list of the choices that were considered, any advice required and whether or not the criteria were satisfied.