Boards can make use of decision papers to gather the necessary information to interpret, formulate and take decisions that will determine the future direction of a business. However, if they are not properly written they could be overwhelming in terms of detail and length, leading to poor decision making.
The most important thing to do when writing a winning board paper is to keep it short and concise. Directors generally have limited time to read your documents and they also might not have the same understanding you do so it’s important to weed out excessive operational details. You should use clear arguments instead of long explanations and only use factual information instead of opinions.
A well-structured decision paper starts with the background of the issue that needs the making of a decision. It then guides directors through the argument, focusing on links to strategy, risks and financial information. This is similar to a traditional story structure and allows directors to follow your thinking process.
Lastly, you should include an assessment of any possible risks that could affect the final decision. You should also indicate if there are any issues that are currently in relation to the proposal. This is an essential element of a decision document and will provide directors with confidence that the information they are reviewing is accurate and up-to-date. Before the meeting it is an ideal idea to hold a meeting with the board members that will be reviewing the document to make sure all the details and factors are taken into consideration. This will help you to identify the issues that must be covered and if it’s necessary, discuss possible outcomes or alternatives with the board.