Board decision papers are a vital instrument for directors to make informed decisions. They are written in order to provide the information and analysis needed by a board in order to evaluate and approve 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 with the purpose they are intended for whether it’s for information https://boardroomofficial.com/ or discussion. They also provide the recommendations of the board. The document should also include a brief background on the matter, including an executive summary (ideally not higher than 4 paragraphs in a single paragraph just a few lines), and a detailed argument, which includes strategies, risks, and financial information. It should also provide an overview of the possible solutions and the reasons why the suggested solution is the best one for the organisation.
We spoke with a number of chairpersons and experts in board development who suggested that executive committees employ an action-oriented style for their documents. The titles of the paper should reflect the decision that needs to be made, rather than being arranged by theme. This helps boards make decisions more effectively and challenges them to think about how they might tackle each issue.
When writing papers for your board Make sure you edit the content until you feel it is succinct and clear. It is always beneficial to take a break from the draft at night and read it over again the next morning with a fresh pair of eyes.