Board management decisions are determined by a variety facts, including governance, financial, HR or even strategic. This is particularly true of the more complex issues a board might have to deal with, like M&A or strategy decisions.
These types of issues often require a significant amount of qualitative input from both management and experts in order to formulate an opinion and comprehend all the dangers that are involved. This level of detail must be managed carefully to avoid the decision-making process being slowed down or becoming time-consuming. These decisions are often addressed in more specific board meetings or even in a workshop specifically designed for the purpose, which can help reduce time and energy needed for other strategic-level discussions that a board needs to participate in.
The appropriate people must be present at the table when the board considers the issue. The tendency of groupthink and boards to rubber stamp decisions could be disastrous. It is best to have boards take the initiative to scrutinize every formal decision they get to determine if the decision is appropriate for that level.
To do this, it is useful for boards to consider the various decision-making models that are available. They differ in their complexity, however, they each has strengths and weaknesses. It is an ideal idea for an executive board https://boardmeetingtool.net/leading-software-to-improve-board-management-decision-making to discuss with its management team the pros and cons of each framework to determine which one is best suited to a particular decision.