Do Boards Have the Right Information to Make Good Decisions?
Board decision making has become more demanding over the past decade. Expectations around governance, risk oversight, strategy, and accountability continue to expand, yet many boards still rely on information flows that were designed for a simpler operating environment.
Good board dynamics and experienced directors matter, but neither guarantees effective decisions. The quality of board decision making depends heavily on the quality, relevance, and timing of the information boards receive. Without the right information, even capable boards can miss early warning signs, focus on the wrong issues, or rely too heavily on management narratives.
This is where many boards develop blind spots, often without realising it.
Why information matters at board level
Boards are no longer passive oversight bodies. They are expected to challenge assumptions, test strategic choices, and oversee complex risk landscapes while remaining appropriately distanced from day-to-day operations.
To do this well, boards need information that helps them understand not just what is happening, but why it is happening, and what might come next. Financial reports and operational dashboards are necessary, but they are rarely sufficient on their own.
When board information is too narrow, too filtered, or too focused on past performance, decision making becomes reactive. Boards may struggle to judge when to intervene, when to support management, and when to step back. Over time, this erodes board effectiveness and weakens governance.
Where board blind spots tend to emerge
Blind spots rarely arise because of poor intent or lack of capability. More often than not, they develop because boards rely on a limited set of formal information channels.
Most board information is filtered through management, typically the CEO and executive team. While this is appropriate and necessary, it also means that what reaches the board is shaped by priorities, assumptions, and framing choices. Even high-performing executives inevitably filter information, if only to manage volume and complexity.
When boards rely solely on formal reporting, they can lose sight of how strategy is landing across the organisation, how risks are evolving at the edges, or where small issues are quietly accumulating.
These gaps are rarely obvious in the moment. Decisions still get made and meetings still run smoothly. It’s only later, often after an issue escalates, that boards realise the information they had was incomplete.
Formal and informal information flows
Effective board governance depends on a balance of formal and informal information.
Formal information includes board papers, financial reports, risk dashboards, committee updates, and management briefings. These should be well designed, prioritised around strategic relevance, and aligned to the board’s key responsibilities. Poorly structured reporting creates noise rather than insight and can overwhelm directors without improving decision quality.
Informal information is just as important, though often less discussed. This includes conversations with executives outside the boardroom, site visits, engagement with staff, and exposure to customers, regulators, and industry peers. These channels help boards sense how the organisation is really functioning and reduce the risk of information blind spots.
Informal doesn’t mean unmanaged or inappropriate, it means directors deliberately broadening their perspective, so they are not reliant on a single lens. Boards that ignore informal information tend to overestimate how well they understand organisational reality.
Designing information for better board decision making
There is no single information architecture that suits every board. Different organisations, sectors, and ownership structures require different approaches. However, strong board information design shares a few common principles.
First, boards are clear about what information they need to govern effectively, rather than accepting what is historically provided. This includes clarity on which decisions require deep analysis and which require lighter oversight.
Second, boards balance internal and external information. Understanding internal performance is essential, but boards also need insight into market conditions, stakeholder expectations, regulatory trends, and emerging risks that may not yet be visible in management reports.
Third, boards pay attention to how information is presented. Clear cause-and-effect logic, thoughtful use of data, and narrative that explains implications all support better decision making. More information does not equal better governance if it obscures what matters.
Finally, boards remain alert to the risk of overconfidence. When information feels too comfortable or too consistent, it is often a signal to ask different questions rather than fewer.
Information, dynamics, and board effectiveness
Information quality cannot be separated from board dynamics. Even well-designed information will not improve decision making if directors do not feel able to challenge, question, or express uncertainty.
Effective boards create space for constructive tension. They encourage directors to test assumptions, explore alternative interpretations, and sit with ambiguity rather than rushing to consensus. Information becomes useful when it is actively interrogated, not passively received.
This is where chairs play a critical role. The way information is discussed, not just what is presented, shapes the board’s ability to govern well.
Strengthening discussion quality through better information
Board effectiveness rests on three interdependent foundations: focusing on the right issues, maintaining healthy group dynamics, and ensuring the board has access to the right information. None of these works in isolation.
As governance expectations continue to rise, boards that invest time in improving their information flows are better positioned to make sound decisions, identify risks earlier, and support management more effectively. They are also better equipped to act with confidence when conditions become uncertain.
