https://boardmeetingtool.net/what-is-a-strategy-and-why-it-is-important-for-any-field

Board management decision-making is among the most critical, complex procedures in governance. Boards need to make decisions regarding the kind of risk that they will take on, and the level of expertise required to manage it. They also have to decide on the best method of communication and make decisions.

Effective boards avoid the use of binary decision-making and invest large amounts of time in the multiplication of possibilities, and challenging assumptions. They also make sure that their decisions are documented in a way which allows them to analyze the decisions and evaluate the effectiveness of implementation.

Leigh Weiss says that for high-risk decisions, also known as what I call black elephants, it is important to involve a diverse group in defining the ultimate binary issue and in the debate surrounding it. Weiss says this includes having outside experts help the board understand the complexity and ramifications of the decisions. And it involves the board actually engaging in the debate instead of waiting for management to make a pre-made decision and then let the board vote on it.

It is useful to have a system that defines which committees, executives, or the entire board must make certain kinds of decisions. This is especially useful when the board is making an issue that could have significant consequences for the future direction of the organization. Boards should also consider establishing which type of voting process (simple majority, supermajority, or unanimous) to apply for specific decisions.