Board decision papers are documents that equip directors with the information they require to make sound decisions. They must be a concise easy to read and well-structured, but they must also be able clearly explain the decision-making process to inspire confidence in directors and ensure that all relevant facts are taken into consideration. A lack of, or incorrect, information can result in poor decision-making, which can slow down progress in strategic planning.
A well-written board document has a clear title and an executive summary that helps directors comprehend the key issues before reading further. This is because directors are not directly involved in the day-to-day operation of the organisation and are not well-versed in the details.
The paper should then outline both the proposal and its rationale. The proposal should be a concise overview, ideally one page. It should describe how the decision has been arrived at by management and how the decision made is superior than other alternatives. If necessary charts or tables can be used to support this. It is also beneficial to provide an explanation of any alternative analysis that has been undertaken. If the analysis is complicated enough to be omitted in the board paper, it https://boardroomofficial.com/ should be included in the annexes.
It is helpful to explain the financial impact of the decision. This should be written in three to five sentences. It is important to outline the alignment, support or progress of agreed strategic and business goals.