Maximizing Value in Board Decisions: The Role of the Decision Quality Officer

Abstract

In this paper we integrate the literature on decision quality with considerations specific to boards of directors. In order to maximize the value of their decisions, boards of directors must look beyond their legal obligations and incorporate business ethics and the latest developments in social, scientific and managerial learning on governance and decision-making processes. Organizations will benefit from identifying an internal staff member who can fill the role of Decision Quality Officer (“DQO”) to advise the board on decision quality on an ongoing basis. We summarize some of the factors affecting board decisions, and explain the benefit of designating a DQO. Finally, we propose topics for a board policy on the role of a DQO.