Boards require a variety of information to make informed decisions. This includes both qualitative data (e.g. the impact an action could affect the company’s culture or the stakeholders affected) and quantitative information (e.g. legal due diligence and analysis of return on investment). Management is responsible to ensure that the appropriate people are collecting, strategically analyzing and packaging this information to aid in board decision-making.

It is also important for the board to have a thorough understanding of what the company board management decision making is currently doing to be able to make informed decisions about strategic issues. This will enable board members understand the dangers and opportunities in the future of the business. This can be achieved by implementing an internal board performance monitoring system or through a post-completion review of major projects and initiatives.

When making a strategic choice it is essential that the board has an awareness of its own limitations and is prepared to delegate certain decisions to committees. This is especially crucial for issues like conflicts of interest and community benefits, CEO evaluation and executive compensation.

The board should also be prepared to accept the possibility of uncertainty. This will let the board’s collective experience of expertise, experience, and knowledge to be used while remaining active and patient rather than reacting. There are a number of methods to be done, such as asking management to create an impression or “mental model” around the decision being made and establishing a red/blue team process, using an external panel of experts with varying perspectives, or devoting time in retreat to discussing a complex issue.