Board decision documents give directors the information to make informed decisions. They should be concise easy to read and well-structured and, perhaps most importantly, they need to clearly explain the decision-making procedure to create confidence in the directors and ensure all relevant information is considered. The absence of, or incorrect or misrepresented information can cause poor decisions and hinder the strategic development.
A boardroomofficial.com well-prepared board report will have a clear and concise title, and an executive summary to help directors grasp the most important issues before reading further. This is vital because directors don't operate in the company on a day to day basis and have limited knowledge of the specifics of operation.
The paper will then outline the proposal and the reasoning. This should be a brief outline, usually one page. It should describe the reasons why management has taken the decision and why the decision is superior to any other options. This can be demonstrated through using tables or charts if appropriate. It is useful to explain the alternative analysis you have completed. If the analysis is too complicated to be included in the body of the paper it should be presented as an appendix.
It is important to describe the financial impact of the decision. This should be done in three to five sentences. It is useful to describe the alignment, support or advancement of agreed strategic and business goals.