As a governance body the board of directors make strategic decisions based on reliable data and decides on the future of a company. The board’s job is to guide the company in its direction and make decisions that are in alignment with the business’s mission, vision and goals. A well-structured board can be more than just an administrative rubber stamp.

How the board is assembled will have a significant impact on the board’s decision-making capabilities. Board members should possess diverse skills and experiences, so when they are discussing issues, they can draw on new perspectives that provide new avenues for the business. Diversity in the composition of the board is one of the best ways to achieve that. A lack of diversity could lead to a narrow perspective regarding the role of the business in society and its future direction.

Straw polls are a method to improve the quality of board decisions. This method involves voting in a way that isn’t counted, and then explaining your vote. This can help to encourage the discussion to be more focused on the issue and inform the final vote, which is formal and binding.

Boards can also cut down on decision fatigue by rearranging their agendas to put important decisions at the beginning and pro-forma items that are less important at the end. This gives the board time to think through its decisions and avoids the debilitating effects of decision fatigue.

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