https://boardmeetingtool.net/board-chair-responsibilities
To take effective decisions, boards require the right information. This includes qualitative information (e.g. the impact a decision can have on the company’s culture or on the stakeholders it could have an impact on) as well as quantitative information (e.g., legal due diligence or a return-on-investment analysis). Management is responsible to ensure that the proper people are gathering, strategically analyzing and packaging the information for board decision-making.
In order to make strategic decisions, it’s important that the board has a thorough understanding of the current business activities. This will assist them to understand the risks and opportunities that could be present in the future of the business. This can be achieved by using an internal monitoring of board performance system or by conducting a post-completion evaluation of major projects and initiatives.
When making a strategic choice it is vital that the board has an awareness of its limitations and is prepared to delegate certain decisions to committees. This is particularly crucial for issues like conflicts of interest, community benefit as well as CEO evaluation and compensation.
The board should also be ready to be in a position of uncertainty. This will allow the board’s collective wisdom as well as expertise to be utilized while remaining attentive and patient rather than reacting. This can be achieved through different methods, including asking management to develop an image or mental model around the decision, creating a “red team/blue-team” process that involves experts with diverse perspectives, or committing time to discuss a complex issue.