Boards can make use of decision papers to gather the information needed to understand, formulate and take decisions that will determine the future of a company. However, if they are not well-prepared they can boardroomofficial.com be overwhelming in terms of detail and length, leading to poor decision making.
Keep your board papers concise and succinct. Directors aren’t able to read documents, and they may not have the same level of understanding as you. It is crucial to cut out unnecessary operational details and use clear arguments rather than lengthy explanations and stick to facts, not opinions.
A well-designed decision paper starts with the background of the issue. It then helps directors understand your argument by covering links to financial and strategy information. This is akin to a traditional storytelling structure, and assists directors in following your thinking process.
Finally, you must include an assessment of any possible risks that could impact the outcome of the decision. You should include a statement of any issues currently pertaining to the proposal. This section is a crucial component of the decision papers and gives directors the confidence that they are reading information that is correct, accurate and current. Before the meeting, it’s an ideal idea to engage in a discussion with the board members who will be going through the document to make sure all the information and points are taken into account. This will allow you to determine what needs to be covered and if it’s essential, discuss possible outcomes or options with the board.