Boards are responsible for a lot of choices — as well as the number is only getting greater. These are decisions with high-stakes, a lot of uncertainty and they are not the sort of thing you are able to delegate.
Suzanne Nimocks: I think it is very important with regards to the plank to have a solid decision-making procedure that allows these to do the job they are really paid to try and help supervision teams produce good decisions. A good process will include things such as challenging the assumptions, playing devil’s advocate and helping management come up with alternatives. It will likewise incorporate tactics for avoiding groupthink (eg thinking, Six Pondering Hats, Disney Planning Approach etc).
This is helped with the usage of tools such as RACI, and the board may have a formal procedure to decide which will issues are appropriate for its type. It might utilize the output from a board retreat or the job of committees that have been tasked with particular decisions, to be sure that the decision is within the decided risk hunger and have been informed by all of the advice it has received.
Leigh Weiss: I do think the key is to consider a step again from the specific decision you are facing and consider, on one hand, the scope what is a strategy of the potential impact (what’s at risk) and, however, the level of conviction about whether it will occur. This helps you prioritize where you can spend time and ensure that the board is making a high-quality decision based upon the best facts available.
