Boards require a variety information to make informed decisions. This includes both qualitative information (e.g. the impact an action could have on an organization’s culture, or the stakeholders affected) as well as quantitative information (e.g. legal due diligence, return on investment analysis). It is the responsibility of management to ensure that appropriate individuals are gathering, strategically analyzing and packaging the information to aid in board decision-making.

It is also important for the board to have a clear understanding of what the company is currently doing to be able to make informed decisions on strategic issues. This will enable them to better understand the opportunities and risks of the company. This can be done with https://boardmeetingtool.net the use of an internal board performance tracking system or by conducting post-completion reviews of important initiatives and projects.

It is crucial to ensure that, when making a strategic decision the board is aware of its own limitations. It should be prepared to delegate some decisions to its committees. This is especially critical in cases of conflicts of interest, community benefit CEO evaluation, and executive compensation.

The board must be prepared to face a moment of uncertainty. This will allow the board’s collective knowledge and expertise to be utilized while remaining attentive and patient instead of reacting. There are a number of methods to be done, such as asking management to create an impression or « mental model » about the decision that is being made by establishing a red/blue team process, using an outside panel of experts with differing perspectives, or devoting time in retreats to discuss a complicated issue.