Decision making at board level
Richard Winfield - Governance Trainer and Career Coach
Governance Training and Director Development | C-Suite Career Coach - How To Get That Dream Job | Linkedin profiles, CVs and job applications | Board Advisor | Keynote speaker
Well-informed and high-quality decision-making is crucial for an effective board, but it doesn't happen by accident. Even the best-intentioned and most competent individuals can make flawed decisions if not guided by a well-structured process.
Many factors leading to poor decision-making are predictable and preventable. Boards can mitigate these risks by investing time in designing their decision-making policies and processes, including the contributions of committees.
Key Considerations
Agenda Design
The agenda design is crucial and typically is managed by the chair in collaboration with the secretary. Key questions to consider include:
Good Practice Guidelines for Agenda Items
Each item on an agenda should have a title, a purpose, a time allowance and a champion. Typical purposes include:
Roles and Responsibilities
Not all matters submitted to the board should be decided by the board. Criteria to suggest a matter is for board consideration include:
领英推荐
Boards should be alert to information- and decision-creep and ensure their time is focused on matters that deserve their attention.
Crisis Situations
However, during crisis situations, some decisions become urgent and critical, necessitating direct board involvement even if they would typically fall under management's purview. Practical actions in these scenarios often demand swift, high-profile responses to mitigate risks and protect reputation.
Conclusion
By focusing on these elements boards can enhance their decision-making effectiveness, clarifying the boundaries between management actions and policy decisions, making effective use of time and ensuring they are prepared to meet the challenges of today's complex business environment.
Richard Winfield is the author of The New Directors Handbook, creator of The Essential Directorship and Strategic Company Secretary masterclasses and curator of the CPD 2.0 Professional programme, which provides a stream of governance alerts and management insights. He teaches corporate governance internationally to directors, boards and corporate secretaries and provides personal career coaching and assistance in preparing effective job applications, supported by comprehensive online assessments.
Clients approach Richard to help bring structure and clarity to their lives.?
#Governance #BoardLeadership #DecisionMaking #CorporateGovernance #BoardOfDirectors #Leadership #Strategy #BusinessStrategy #BoardManagement #EthicalLeadership #Transparency #Accountability #Management #BoardEffectiveness #RiskManagement #CrisisManagement #Sustainability #ESG #CorporateStrategy #BusinessExcellence #Innovation #SystemsThinking