Board decision papers can be a useful instrument for directors to make informed decisions. They are written to provide the information and analysis directors require to https://boardroomofficial.com/guide-to-board-decision-papers/ consider and approve the proposed decision. They can be used to discuss major capital investments and subsequent revenue implications, acquisitions/dispositions, introducing new services or changing existing ones, organisational structure changes, budgetary decisions, granting contracts or joint ventures etc.
The best board papers begin by stating the purpose of the paper regardless of whether it’s information or for discussion. They also state the recommendations of the board. The document should include an introduction to the issue and a summary of the executive (ideally less than one paragraph or four lines) and a comprehensive explanation that covers strategies, financial information, and the risks. It should also include an overview of possible solutions and why this solution is right for the organization.
A variety of board development experts as well as chairs we spoke to suggested that executive teams utilize a decision-focused format for their papers. This is because the headings on the paper reflect the choice that will be taken rather than organizing them by theme – as this allows boards better process information and also forces them to consider how they could tackle each issue.
When you write your board papers Make sure you edit the content until you feel it is succinct and clear. It is always useful to take a break from the draft at night and read over it the next morning with a fresh pair of eyes.