1
EFFECTIVE BOARD
DECISION MAKING
Bret Wilson
The Triangle Companies
An Effective Board Decision Making
Process
• All board members contribute to the effectiveness
of each and every board meeting
• Chairman organizes the meeting to allow
participation, debate and decision as well as
manage conflict and problems
• The board works with management to anticipate
and provide the information needed for decisions
• New members are oriented as to the processes
used by the board
• Multiple tools are used in choosing the best
solution to a problem.
The Top Function Of The Board
Of Directors Is To Make Good
Decisions That Are Best For The
Cooperative And Its Members.
2
DIFFERENT TYPES OF
DECISIONS
• Strategic
• Tactical
• Operational
STRATIGIC DECISIONS
• Provide the cooperative with a general direction
• Determines long-term goals and values
• Includes the especially important or risky
decisions
• Decisions that involve large investments
• These decisions tend to be more broad
STRATEGIES:
• A board retreat is a good environment in which to
make strategic decisions and build consensus.
TACTICAL DECISIONS
• Planning decisions that support strategic decisions
• Effective in a medium range time frame
• Consequences and costs are less severe than those
of strategic decisions, but more severe than
operational
STRATEGIES:
• Knowledge is Power: Anticipate information
needs and ask discerning questions before making
a decision
• Make timely decisions and move on
3
OPERATIONAL DECISIONS
• The detailed daily decisions that run the business
• Have an immediate impact on the business
• Low cost, low risk
• Consequences and costs are minimal
STRATEGIES:
• Primarily the responsibility of management
• Should support policies and goals of the
cooperative.
• Can be set as a standard operating procedure
Goldilocks and the Three Boards
• One board is too weak
• One board is too strong
• This board is just right
Strength in decision making determines a board ‘s
SUCCESS
• Close an unprofitable facility.
• Invest in ma