If you’re a manager of a company or part of the board, you are going to face some difficult decisions. Great decision-makers help their companies assess valuable actions and initiatives, leading them to more profit and sustainability.
Ineffective decision-makers, on the other hand, drag the company down and end up worse off than when they started. Projects stall, employees are frustrated, and this is not to mention any negative implications for your clients or customers.
To become a better decision maker and prevent such issues, there are some things to keep in mind when meeting with the board.
Here are some insights to help you and other board members make better decisions that positively impact your company’s bottom line:
Set Specific Agendas
One of the biggest sources of time-wasting when making decisions with your board is a lack of direction. Bringing irrelevant information into the mix only distracts you. And wandering off into other topics that aren’t a priority is a grave mistake.
Get into the habit of detailing a meeting agenda for each decision you need to make. Tackle the more pressing issues earlier in the meeting, to avoid getting bogged down by technicalities.
This helps you make impactful decisions that are truly at the top of your list. After you’ve tackled the big issues that require most of your attention and energy, you can move on to the next task on the list.
Avoid Decision Fatigue
Decision fatigue is a real phenomenon. It can happen in your everyday life, but it is even more destructive when it comes to business. If you have to make small, irrelevant decisions throughout the day, it can harm your ability to make important ones.
When the board needs to decide on one of several options, first eliminate those that are clearly not good for your company.
You can include heads of relevant departments such as marketing or HR to quickly sift through obvious hard passes. Their perspective might be invaluable because they might spot issues that wouldn’t pose a problem for you at first glance.
Having fewer choices to consider leaves your board with fewer choices and more energy to focus on viable options.
Leave Time to Evaluate Options
Don’t rush important decisions. Make sure to leave time to evaluate them from every meaningful angle.
Send out an email beforehand with 3 to 5 items that you will have to discuss. This helps board members to familiarize themselves with the topic and gather necessary information.
Sometimes, you’ll have several options with very slight differences. Such decisions are difficult to make because you have to carefully assess all the losses and gains – and often one is the prerequisite to the other.
To avoid analysis paralysis, set a time limit for the meeting or decision. There is a difference between being efficient with your time and taking shortcuts when it comes to decisions. Smart companies set a deadline that is reasonable yet still drives action.
Ensure Key Stakeholders Are Present
If you have ever made a decision only to have it reversed later, you understand how frustrating it can be.
You want to ensure that all people who have a say in the decision are present when discussing possibilities. That way, you prevent redundant meetings and the risk of going back on your original decision.
Nowadays, numerous scheduling and conference tools are available so that everyone can find a time that suits them.
Also, ensure that those who are not able to attend physically can tune in via a video chat tool or at the very least receive a summary of the most pressing points before the meeting so their opinion can be accounted for.
Use Technology to Drive Informed Decisions
One of the biggest mistakes you can make in decision making is not leveraging technology and data. Analytical tools can help your board bypass biases and see new opportunities that a human eye might miss.
For example, when making purchasing decisions regarding tools and equipment, you can analyze historical tool tracking data to determine how often you need a particular item. In essence, you can see if the repair, maintenance, or replacement of the tool will outweigh the profits you make from your decision.
Employee data can also show you whether your employees work overtime too often so you can decide to hire more people or reschedule so that your business and customers don’t suffer.
The benefit of business analytics tools is that you can quickly see the potential value, cost, or effect of your board’s decision.
Additionally, it improves transparency and accountability in your business, and it may be easier to get buy-in from other stakeholders if they can visualize clear profit projections.
In Conclusion
To run a successful business, you need to be able to improve your board decision-making process. With the world constantly changing, there is a greater need to adapt your organization to new realities than ever before.
By following the guidelines above, you can avoid some of the common pitfalls of making decisions for your company. That way, your choices will truly have a positive impact on your growth now and going forward.