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Boards require a range of information to make informed decisions. This includes qualitative input (e.g., the impact a decision could have on the organization’s culture or which stakeholders it would have an impact on) and also quantitative information (e.g. legal due diligence, a return on investment analysis). It is the job of management to ensure that the proper people are collecting this data while strategically analyzing and making it available for board decision-making.

To make strategic decisions, it’s vital that the board has a clear understanding of the current activities of the company. This will allow them to better comprehend the future challenges and opportunities of the company. This can be accomplished with the use of an internal board performance tracking system or by conducting post-completion reviews of major projects and initiatives.

When making a decision on a strategic plan it is crucial that the board is aware of its limitations and is prepared to delegate certain decisions to committees. This is especially important for issues such as conflicts of interest and community benefits, CEO evaluation, and executive compensation.

The board must be ready to accept the uncertainty. This will allow the board’s collective knowledge, expertise, and skills to be utilized while remaining patient and active instead of reacting. There are a variety of ways this can be achieved, including asking management to develop an impression or “mental model” of the decision being presented or a red/blue group process, utilizing a panel of external experts with differing points of view or committing time in retreats to discuss an intricate issue.

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