Boards require a range of information to make informed decisions. This includes qualitative information (e.g., the impact a decision can have on the company’s culture or the stakeholders it will have an impact on) as well as quantitative data (e.g., legal due diligence or a return on investment analysis). Management is responsible to ensure that appropriate individuals are gathering the information, strategically analyzing it and packaging this information to aid in board decision-making.

It is also essential for the board members to have a good understanding of what the business is currently doing to be able to make informed decisions about strategic issues. This will enable them to better understand the future opportunities and risks of the company. This can be accomplished with the use of an internal system for tracking the performance of the board or by conducting post-completion reviews on major initiatives and projects.

It is vital that when making a strategic choice, the board is aware of its own limitations. It should be prepared to delegate some decisions to its committees. This is especially critical for issues like conflicts of interest, community benefits CEO evaluation, and executive compensation.

The board should also be ready to sit in a place of uncertainty. This will let the board’s collective experience of expertise, experience, and knowledge to be utilized while remaining active and patient instead of reacting. There are a variety of ways this can software to improve board management decision making be done, such as asking management to create an impression or “mental model” around the decision being discussed by establishing a red/blue group process, using an outside panel of experts who have different views, or devoting time in retreats to discuss an intricate issue.