Boards are able to use decision documents to gather the necessary information to understand, formulate and make decisions that will determine the future of a company. If these documents aren’t https://boardroomofficial.com/guide-to-board-decision-papers/ properly prepared, they could be overwhelming in both information and length. This can result in poor decision-making.
Keep your board papers concise and concise. Directors usually have a limited time to read your documents and they also might not have the same understanding as you do. Therefore, it is important to eliminate unnecessary operational detail, rely on simple arguments instead of lengthy explanations and use only facts instead of opinions.
A well-structured decision paper starts with the background of the issue that needs the making of a decision. It then guides directors through the discussion, including the relationship between strategy, risks and financial information. This is similar to a traditional storytelling structure and allows directors to follow your thinking process.
Additionally, you should include an assessment of the potential risk that could affect the outcome of the decision and be sure to mention if there are any issues currently pertaining to the proposed decision. This is a crucial part of a decision paper and gives directors the confidence that the information they are reading is valid and current. Before the meeting, it’s best to hold a meeting with the board members who will be going through the document to ensure that all the information and points are taken into account. This will allow you to determine what information must be included and, if it is necessary, discuss with the board members possible outcomes or options.
