Board management decisions are based on a variety of information, be it finance, HR, governance or strategic. This is particularly relevant to the more intricate problems that boards be faced with including M&A and strategic decisions.

These kinds of issues typically require significant qualitative input from experts and management in order to form an opinion and be aware of the risks associated. This level of detail must be carefully managed to avoid the decision-making process slowing down or becoming time-consuming. Often these decisions can be discussed in more focused board meetings, or perhaps in a dedicated workshop, which could help reduce time and energy needed for other discussions of strategic importance that a board needs to take part in.

The appropriate people must be present when the board discusses a certain issue. The emergence of groupthink and a tendency for boards accept whatever decisions are presented to them could result in serious consequences. It is best to have boards establish a routine to examine every formal decision they receive to determine whether the decision is appropriate for that level.

It is vital that boards look at the different models of decision-making available. They differ in what is a strategy their extent, but they all have their strengths and weaknesses. It is an ideal idea for the board to discuss with its management team the pros and cons of each one in order to determine which one is best suited for a particular situation.