Board Decision Papers

Board decision papers provide directors with the necessary details to make educated decisions. They should be concise and easy to read, as well as well-structured, but most importantly they must clearly show the decision i loved this making procedure to create confidence in the directors and ensure all relevant facts are considered. False, incomplete or inaccurate data can lead to poor decision-making, which can slow down the progress of strategic plans.

A well prepared board paper should have a clear name and executive summary to help directors grasp the most important points before they go on to read more. This is vital since directors aren’t part of the organisation on a day to day basis and have limited knowledge of the detailed operation.

The paper should define the idea and its reasoning. The paper should provide a brief outline – usually one page. It should explain the process by which the decision was taken by management and explain why the decision made is superior than alternatives. If needed, tables or charts can be used to justify this. It is also useful to provide an explanation of any alternative analysis that has been undertaken. If the analysis is complex enough to warrant not being included in the board paper, it should be added as an annexe.

It is useful to explain the financial implications of the decision. It should be done in three to five sentences. It is helpful to explain the alignment, support or the advancement of the agreed-upon strategic and business goals.