How to Write Effective Board Decision Papers
Board decision documents are a crucial instrument for directors to make informed decisions. They are written in order to provide the information and analysis needed by a board to consider and accept any 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 such as information only, discussion or seeking to make a decision – and then clearly state the board’s decision. The document should contain an introduction to the issue and a summary of the executive (ideally no more than one paragraph or four lines) and a comprehensive explanation, covering strategy, financial information, and the risks. It should also give an overview of the alternatives and the reasons why the solution proposed is the best option for the organisation.
A number of board development experts and chairs we spoke to suggested that executive teams use a format that is focused on decisions for their documents. The headings of the papers should reflect the decision that needs to be made, rather than being arranged according to thematic. This allows boards to manage the information more efficiently and challenges them to think about how they could tackle each issue.
Edit your board documents until they are clear and concise. It is always useful to take a break from your draft for a night and go over it the next morning with a fresh set of eyes.