As a governance body, the board of directors takes strategic decisions that are informed by objective data and determine the future of a company. The board’s job is to give direction to the direction of the company, and to make decisions that are aligned with its overall objectives, mission, and vision. A well-structured Board can be more than an ordinary rubber stamp.

The board’s ability to make decisions will be greatly affected by the way it is put together. Board members should have different expertise and knowledge, so when they talk about issues, they can draw in new perspectives and provide new avenues for the business. One of the most effective ways to accomplish this is to encourage diversity in board composition. Insufficient diversity can cause a narrow view on the company’s place in society and its future direction.

Another method to increase the quality of board decisions is by the use of straw polls that aren’t legally binding. This method involves voting in a way that isn’t counted, and then explaining your vote. This can encourage a more focused discussion on the issue, and also better inform the final, formal and binding vote.

Boards also can help reduce decision fatigue by restructuring the agenda to put significant decisions first and less important pro-forma items at the end of the meeting. This allows the board to take its time and avoids the exhausting effects of decision fatigue.

what is a strategy

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