Boards require a range of information to make informed decisions. This includes both qualitative data (e.g. the impact that an action could affect the company’s culture or the stakeholders that are affected) as well as quantitative information (e.g. legal due diligence and analysis of return on investment). It is the job of management to ensure that the appropriate people are collecting this data while strategically analyzing and packaging it for board decision-making.

It is also essential for the board to have a thorough knowledge of what the company is currently doing to be able to make informed decisions about strategic issues. This will help them understand the risks and opportunities that could be present in the near future of the company. This can be done through the use of an internal system for tracking the performance of the board or by conducting post-completion reviews on important initiatives and projects.

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

The board should be ready to accept uncertainties. This will enable the board to draw on its collective expertise, knowledge and skills while remaining patient and active instead of reacting. This can be accomplished through different ways, like asking management to develop an image additional reading about Financing Mergers or mental model around the decision, creating a « red team/blue-team » process, involving an expert panel with different perspectives, or by committing time to discuss a complicated issue.