Board decision papers are written documents that help board members to fulfill their oversight responsibilities, and make informed decisions about company matters. They should be concise yet informative and concise, with an enlightened executive summary and supporting appendices.
Directors can be guided to make the right decisions through a discussion on alternatives analysis, a review of key metrics, research or competitive insights and an operating framework which influenced their views. They could also consider an experiment on the effect of different choices on the business. It’s also helpful to demonstrate why management chose the preferred recommendation – this could involve explaining the various options considered or summarising pros/cons of each, including how the suggested method scored against criteria.
Board documents should be written in a formal style, free of jargon or legalese. This will help keep the content up-to-date and accessible to all directors. Charts and graphs can be used to present the data trends and information, and break up large chunks of text. It is recommended to read the papers to your peers or read them aloud to ensure the primary points are being communicated. If you need to clarify something, it’s best to solicit feedback or perspectives from the board.