Chapter 5 - Board decision making

Question 1

Why must Boards reflect on how they make decisions, not just what they decide?

Answer 1

Because Board decisions affect risk, strategy, culture, and ethics. Process and judgement are as important as outcomes.

Question 2

What is evidence-based Board decision-making?

Answer 2

Using best-available data, stakeholder input, and professional judgement to inform decisions rather than instinct or tradition.

Question 3

What are the six steps of evidence-based practice?

Answer 3

Ask – Formulate the right question (e.g. What issue are we trying to solve?)

Acquire – Gather data: internal reports, external research, stakeholder views

Appraise – Critically evaluate the quality of evidence

Aggregate – Combine multiple sources into an informed view

Apply – Make the decision using this evidence

Assess – Evaluate the outcome and learn for next time

Question 4

What is cognitive bias?

Answer 4

A subconscious deviation from rational judgement influenced by past experience, emotion, or mental shortcuts.

Question 5

Name common cognitive biases that affect Board decisions.

Answer 5

CLASH GAS

3. Anchoring - undue reliance in initial data
4. Groupthink - pressure to conform to majority.
5. Confirmation bias - favouring info that supports existing views.
6. Loss aversion -
   Overweighting risks of loss over benefits.
7. Status quo - preference for current status over change.
8. availability - relying on recent or memorable events.
9. hindsight - seeing outcomes as more predictable than they were.
10. sunk cost - continuing due to flash investment.

Question 6

What is the WRAP (heath and heath) decision-making model?

Answer 6

1. Widen options
   2.. Reality-test assumptions
   3.Attain distance
2. Prepare to be wrong

Question 7

What are three practical tools to reduce decision bias?

Answer 7

1. Pre-mortem analysis -
   Imagine failure and ask why it’s occurred.
   2.Devil’s advocate - assign role to challenge thinking.
   3.Confidence scaling -
   How certain are we 1-10?

Also: decision logs, record rationale, alternatives, concerns for future learning.

Question 8

What are Rowe and Mansons five decision styles in the Decision Style Model?

Answer 8

Don’t Forget How I See

D – Decisive: quick, no-nonsense decisions
F – Flexible: adaptable, informal
H – Hierarchic: structured, analytical, clear preference
I – Integrative: inclusive, consensus-seeking, complex
S – Systemic: strategic, big-picture, combines H & I

Question 9

What is the OCEAN model (Costa and McRae) in relation to decision-making?

Answer 9

Openness
Conscientiousness
Extraversion
Agreeableness
Neuroticism

key personality traits affecting risk and confidence.

Question 10

How can Board structure affect decision quality?

Answer 10

Smaller boards may be more cohesive;
diverse boards reduce blind spots and improve outcomes;
Too many meetings = fatigue, too few = under sight

Question 11

What is De Bono’s Six Thinking Hats model used for?

Answer 11

Improving Board discussion by encouraging different perspectives:

White (facts),
Red (feelings),
Black (risks),
Yellow (optimism),
Green (ideas),
Blue (process).

Question 12

What is the BECIDE + S memory aid?

Answer 12

Board thinking,
Evidence based - 6as
Cognitive bias - CLASH GAS
Individual traits (ocean - Costa and Rae)
Decision tools, (wrap - heath and heath)
Effective process,
Structure/stakeholders/Six Hats/Safety/Scrutiny.