How do you decide?
Decision-making processes must match the weight of the issues you are considering.
Making well-informed decisions is paramount for boards. Your choices impact Members, employees, volunteers and other stakeholders. They affect the use of financial and other resources, including reputation. A poor decision could devastate your organization’s ability to lead and impair its ability to deliver on its mission.
What is a well-informed decision? Generally, it involves understanding (not just hearing or reading) items like the following before making a choice:
A clear definition of the issue(s) being considered.
Who will be affected and how?
Possible short and long-term impacts.
Reliable data availability.
Risks and mitigation strategies.
Decision urgency and reversibility.
Consistency with mission, values, and strategic goals.
Alternative possibilities.
Budget considerations.
Process options can range from simple consent-agendas to a lengthy, externally facilitated process involving independent experts and stakeholders; with several options in-between. Board chairs must select an appropriate decision-making approach, and ensure resources are available to support the process. Cost considerations matter; non-profit boards often have limited budgets, but think long term. Most board discussions can reach a well-informed decision under the skilled leadership with input and data from directors, staff, volunteers, etc. However, some issues are big enough to merit the use of an independent facilitator and further outreach.
Compare this to decisions you make in your personal life. If you are cooking dinner for a household, you might decide what to serve without consulting anyone. But if you are thinking about moving your family hundreds of miles away, you use a more complex process. You consider practical aspects like the cost of housing, as well as the emotional effects on your family and loved ones who would be left behind. Multiple short and long term factors will weigh on this decision, and whatever you decide upon might involve sacrifices. Some decisions must be given the time and attention necessary to get to the best possible outcome.
Even if you have no control over the process used, you are responsible for how you participate. As a fiduciary, you have an obligation to make informed decisions. Do you ask smart questions for deep understanding? Do you engage in fair discussion about what you disagree with? Do you request information or opinions that you believe are necessary and have not been provided? Do you speak up, even if you hold an unpopular opinion?
Stay tuned for upcoming articles in the “Boardroom Tools”* section that will explore decision-making tools and processes. We will look at the difference between “discerning” and “deciding” plus how and when to use tools such as “steel-man” and “the devil’s advocate”. Leaders will learn how to select a process and tools. For participants, we will provide options to help them engage in a manner that leads to the well-informed decisions they are obligated to make.
* Boardroom Tools is in the paid-subscriber section of The Non-Profit Board. Save 40% by signing up several board members with the group subscription option.