By quality of decision is meant the impact of the decision upon the system. Does the decision move us to a better condition: i.e., do our methods improve, are our costs lowered, does our productivity increase, do our sales rise, are our profits increased, is morale raised, etc.
Improved board performance has two prerequisites, one is continuity of membership over time, and the other is running effective meetings, as there never seems to be enough time to get it all done. Key to both of these prerequisites is board members coming to the meetings prepared to go to work and be effective.
For the governing board, there are two basic means that can be used to make decisions. Namely:
It is common, and wise, to consider the many angles of a problem when determining an appropriate solution. However in so doing, several potential solutions may arise. Below are some steps in evaluating these alternative solutions to a problem.
There are two types of committees: A standing committee Oversees the on-going major activities of the board such as personnel, board development, succession planning, audit, fund raising or finance. Ad hoc committees Developed to handle short-term activities such as CEO recruitment/selection, site selection, building development or a special event.
Other than setting the long-term agenda and defining strategy for the organization, selecting the CEO is a board’s most important responsibility. I would argue that this responsibility is even senior to setting direction, for if not done well, neither direction, i.e. strategy, nor execution will be sound.
An effective team develops a set of standards for itself and then everyone in the group commits to hold itself to those standards. These standards along with a common sense of purpose defines team. If the board can set high standards for itself and meet them, its decisions will be of high quality, the leadership of the organization will be effective (i.e. your leadership will have integrity) and the morale of the staff will be raised.
Dilemma - A situation that requires one to choose between two equally balanced alternatives; a predicament that seemingly has no satisfactory solution.