Board decision papers are written documents that help board members perform their oversight responsibilities and make informed decisions regarding company issues. They must be clear and informative with a clear and concise summary and annexes.
Directors can be helped to make the right choices by discussions on alternatives analysis as well as a review of key metrics as well as research or competitive insights and an operating framework that informed their perspective. They may also consider an experiment on the effect of the various options on the business. It is also beneficial to show how management made the decision to choose the best recommendation – this could involve explaining the various options being considered or a brief summary of the pros and cons of each, as well as how the suggested method scored against a set of criteria.
Board papers should be free from legalese and jargon. They should also have a formal business writing style being used throughout to make the content relevant and accessible to every director. Charts and graphs can be used to summarize data and information trends and break up large chunks of text. It’s also a good practice to read the papers to your peers or read them aloud to ensure that the main messages are being communicated. If you’re looking to clarify something, it’s best to ask for feedback or other views from the board.
