The decision-making process https://boardmeetingtool.net/board-chair-responsibilities of board management is among governance’s most complex and critical processes. Boards have to decide on the type of risk they’ll accept and how much expertise is required to manage the risk. They also need to determine the best methods to communicate with each other, and decide what they will do to make their decisions.

Effective boards avoid making binary decisions and spend significant time on the multiplicity of options and challenging assumptions. They also make sure that their decisions are documented in a way that allows them to revisit the decisions and assess the effectiveness of implementation.

Leigh Weiss says that for high-consequence decisions or what I call black elephants, it’s important to involve a broad group in framing the ultimate binary question, and in the discussions surrounding it. Weiss suggests the involvement of outside experts to assist the board in understanding the complexities and implications of the decisions. The board must be actively engaging in the debate, rather than simply let management make a pre-made decision and then let the board vote on it.

To ensure that the correct person is in charge of making a decision, it is helpful to have a chart that identifies which executive directors, committees, and/or the board as a whole should make specific types of decisions. This is particularly helpful when the board is making a decision that could have significant consequences for the future direction of the organization. Boards should also be thinking about the kind of voting process (simple majority, supermajority, or unanimous) to apply for specific decisions.