Board decision papers can be a valuable tool to help directors make informed decisions. They are written to provide the data and analysis needed by a board to review and decide on 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 a statement of their purpose regardless of whether it’s information or discussion. They also provide the board’s recommendations. The paper should then include brief information on the matter, including an executive summary (ideally not more than one paragraph of four or a couple of lines) as well as a detailed justification, including strategy, risks and financial information. The paper should also provide an overview of options and the reasons why this option is best for the business.
Many board development experts and chairs we spoke with suggested that executive teams utilize a decision-focused format for their documents. This is why the headings on the paper reflect the choice that is to be taken instead of organizing them by theme. this helps boards manage information more efficiently and forces them to consider how they can approach each problem.
When writing board papers, be sure to edit the content until you are satisfied that it’s clear and concise. It is a good idea to go over your draft over again the next morning after a night’s rest.