Consensus Decision Making - Good Governance Priciples

The boardroom can often feel like a battleground, with directors vying for control and competing to have their ideas heard. But what if there was a better way? What if instead of fighting for power, directors could come together and make decisions as a team? This is where consensus decision making comes in.

Consensus decision making is a method of decision making that values the input of every board member and seeks to find solutions that everyone can agree on. It may seem like a lofty goal, but with the right approach, consensus decision making can transform the way your board operates.

In this article, we'll take a closer look at what consensus decision making is, how it can benefit your board, and practical tips for implementing it in your board meetings. So, if you're ready to say goodbye to gridlock and hello to efficient and effective decision making, keep reading!

What is consensus decision making?

Consensus decision-making is a process of decision-making in which all participants in a group collaborate to reach a consensus. Contrary to conventional decision-making techniques like majority voting or authoritarian leadership, consensus decision-making cherishes each member's participation and aims to identify solutions that may be accepted by all.

The premise behind consensus decision-making is that the group would be able to make better judgements that are more inclusive and effective by considering the viewpoints and ideas of all members, not just the few. It is founded on the idea that everyone has something meaningful to offer and that choices are made more effectively when all opinions are heard.

It is based on group collaboration and allowing space to all participants to join in the discussion and voice their viewpoints. Although it may take some time, this procedure ensures that everyone has the opportunity to express their views and that the chosen course of action can be backed by all.

It's critical to understand that when making decisions by consensus, everyone does not necessarily need to concur on every point; rather, everyone must be able to live with the choice that has been made. Members may still have concerns about the final judgement in some circumstances, but they are willing to comply since they recognise that it is the best solution for the group as a whole.

How it differs from traditional decision-making methods

There are numerous significant ways in which consensus decision-making differs from conventional decision-making.

Firstly, conventional decision-making processes often rely on the opinions of just some of the participants, such as majority voting or authoritarian leadership. These strategies may be effective in the short term, but they may result in a lack of buy-in from other participants, which may lead to issues in the future.

In contrast, consensus decision-making values each member's contribution and promotes participation from all. This may result in more inclusive and sensible decisions that have greater support from all group members.

The second key area where consensus decision making differs from other methods is that it favours effectiveness over efficiency. For example, majority voting is frequently utilised to reach conclusions quickly rather than taking time to gain support from all participants. While this could be effective, it might also result in choices that are not beneficial for the group as a whole and will likely lead to reduced support for the implementation of the decision.

In contrast, consensus decision-making takes the time to consider all available possibilities and come up with a decision that can be supported by all. While it may take longer, it often leads to a better long term decision and can significantly speed up the process of implementation.

Finally, consensus decision making uses collaboration and seeks to build unity, unlike some traditional methods which can result in division. For example, majority voting can often leave the minority feeling left out or unheard, which is detrimental to the longer term functioning of the board and organisation.

The benefits of implementing consensus decision making in the boardroom

There are many benefits of consensus decision making, including:

• Improved decision-making effectiveness: Making decisions through consensus promotes involvement and open dialogue among all participants. This may result in more in-depth discussion and wiser choices being made.
• Increased buy-in from participants: When decisions are made by consensus, each member's input is valued, which may result in increased buy-in from all members. This can ensure that choices are carried out successfully and that everyone is striving for the same objectives.
• Collaboration and team dynamics are improved: Decisions made by consensus, which benefits all team members improved team dynamics and create a better working environment.
• Flexibility and adaptability: Consensus decision-making enables changes and modifications to be made in the decision-making process, which can aid the group in adapting to new knowledge and altering conditions.
• Building trust: Consensus decision-making promotes mutual respect and trust among participants, which may eventually result in more effective communication and collaboration.

Many of the benefits of consensus decision making have long been known. Moscovici and Carre ("Consensus decision making in groups", 1991) found that consensus decision making leads to better decision quality and increased group cohesion, compared to other decision-making methods. They also found that group members were more likely to comply with and support the decision if it was reached through consensus.

Consensus Decision Making Guiding Principles

There are a number of principles that support the effective implementation and utilisation of a consensus decision making process. These principles are:

• Promote active engagement by all participants: Unlike other methods where minority voices or dissenting views are often silenced or discouraged, consensus decision making must actively encourage all to express their thoughts, ideas and opinions. The opinions of any one person do not take precedence over those of other members.
• Active listening and open conversation: All participants must not only have the opportunity to be heard, but must also provide the same opportunity to others. Actively listening to the opinions of others and being willing to adjust one’s own views are essential for reaching a consensus. Everyone encouraged to speak honestly and is also required to listen to others and take their ideas into consideration.
• Cooperation among all participants. Everyone must cooperate to achieve the group goal of reaching a consensus decision. It is not enough to disagree – participants can express a dissenting view but must also be willing to offer suggestions about how the gap differences of opinion can be bridged.
• Flexibility: When making decisions by consensus, decisions can be changed and adjusted as needed. This implies that everyone is urged to be receptive to fresh concepts and take into account the viewpoints of others.
• Respect for one another: The foundation of collective decision-making is respect for one another. This means that everyone must respect one another and take into account the opinions of others.

By following these principles, consensus decision making values the input of all board members, encourages open communication and active listening, and promotes cooperation and mutual respect among all members. This can lead to better decisions that are more inclusive and effective.

Implementing Consensus Decision Making

Implementing a process of consensus decision making is not always a simple a straight forward one. However, there are a few tips that can help:

• Clearly state the issue or choice that must be made: Make sure that everyone in the group is aware of the issue or choice at hand before starting the process of reaching a consensus. This can ensure that everyone is working towards the same objective and assist to concentrate the conversation. It is also important to ensure the group has a shared goal of achieving consensus. This will make it easier to bridge the gap between dissenting views later on.
• Assemble all necessary data: It's crucial to obtain the necessary information in order to make an informed conclusion. This could entail investigating the problem, conducting surveys, or getting opinions from interested parties. This will also prevent participants attempting to delay the process by saying there is insufficient information available.
• Establish a clear timeline: Consensus decision making can be a time consuming process, however it is important not to let discussions drag on without making progress. Setting a fixed timeline can help achieve this. However, also remember that decisions reached by consensus can often be quicker to implement, so taking a little more time on the decision may not delay overall progress.
• Determine the criteria for making decisions: Everyone will be better able to comprehend the standards by which the decision will be made if the decision-making criteria are specified. This will also make it easier to compare several possibilities and pick a choice that satisfies these requirements. The criteria can be developed and agreed by the group making the decision upfront – before any options are on the table.
• Assign roles and duties: To ensure that everyone is involved and that the process works smoothly, roles and duties should be assigned. This could be appointing a facilitator to lead the discussion or giving individual participants a specific task to complete, such as background research or minute taking.
• Encourage active participation from all participants: It is essential to ensure that everyone's opinions are heard and considered. This may involve giving members the chance to express their thoughts and viewpoints uninterrupted or developing a setting where it is acceptable to voice divergent beliefs. It may also be helpful for members of the group to summarise what they have heard and where the key points of convergence and divergence are.

Facilitating a consensus decision making process can be challenging. It requires an ability to encourage contribution and manage competing viewpoints while keeping discussions respectful. If you find yourself in a position where you need to facilitate such a process, the following tips will help:

• Lay out the ground rules: Setting ground rules can aid in fostering an atmosphere of respect and productive discussion. This could include guidelines for respectful dialogue, active listening, and avoiding personal comments.
• Encourage open dialogue: Building trust and understanding among board members depends on fostering open communication. When facilitating the process ensure you give members a platform to express their thoughts and viewpoints and offer a secure environment where opposing viewpoints can be heard.
• Determine potential impediments, then take action to remove them: identify potential obstacles, such as technology issues, power imbalances and information challenges. Then create plans to overcome.
• Make decisions using a range of tools: Making sure all points of view are taken into account and the optimal choice is chosen can be accomplished by using a range of decision-making tools. This could include applying strategies like multi-voting, brainstorming, or a consensus decision-making matrix.
• Follow developments: The process may be kept on track and a decision can be made quickly by keeping track of the progress. It is also helpful to remind the group regularly of the progress being made and where discussions should be focussed.
• Restate and explain the decision: Once a consensus has been reached, restating and outlining the decision is a crucial phase in the procedure. This can ensure that the decision is understood by all participants and that it is efficiently carried out.

These suggestions can help you facilitate an inclusive, effective, and efficient consensus decision-making process. However also remember that it's important to keep the process adaptable to the group's demands.

Managing challenges of consensus decision making

Consensus decision-making can be a strong instrument for making decisions, but it can also present its own set of difficulties. Here are some pointers for overcoming some of the frequent difficulties that can occur while reaching a consensus on a decision:

• Addressing power disparities All members must contribute to and participate in consensus decision-making, however certain members may find it difficult to fully participate due to power inequalities. Create a space where everyone feels heard and respected in order to address these inequities. You may do this by actively soliciting the opinions of members who might be reluctant to speak up.
• Promoting active listening is important because it helps members comprehend one another's viewpoints and develop trust. Establish guidelines for respectful communication and provide members the chance to express their thoughts and viewpoints to promote active listening.
• Consensus decision-making necessitates adaptability and a willingness to compromise, so be prepared to do so. Be open to hearing different viewpoints and willing to consider ideas that might not have been your first choice.
• Clarity and transparency in communication can aid in fostering a sense of mutual respect and trust among group members. Share information about the decision-making process and the justifications for decisions, and be receptive to criticism and enquiries.
• Keep calm: Be ready to be patient because consensus decision-making can take more time than conventional decision-making techniques. Don't rush the process and give members enough time to thoughtfully explore the options and offer comments.
• Be adaptable: Since consensus decision-making is an iterative process, be ready to modify the procedure as necessary to best serve the group's needs.

By using these suggestions, you may establish a setting where everyone feels heard and appreciated while overcoming some of the typical difficulties that can occur during a consensus decision-making process. Keep in mind that successful consensus decision making necessitates tolerance, adaptability, and a willingness to make concessions.

In the boardroom, consensus decision-making can be a strong instrument for making decisions, but maintaining it takes constant work and dedication. The following are some excellent methods for preserving boardroom consensus decision-making:

• Clearly define the rules: Clearly define the rules for decision-making, including how decisions will be made, who will participate, and what data will be required. This makes it easier to make sure that everyone is on the same page and that the procedure is open and impartial.
• Encourage involvement: The participation and input of all members are essential for consensus decision-making. Encourage involvement by fostering an atmosphere where all opinions are appreciated and heard as well as by proactively seeking out the opinions of participants who might be less inclined to speak up.
• Encourage open communication: Mutual trust and a knowledge of other viewpoints are both facilitated by open communication. Establish guidelines for polite communication and give members opportunity to express their ideas and perspectives to promote open dialogue.
• Review and consider: In order to find areas for improvement, regularly examine and reflect on the decision-making process. Gather member input and utilise it to adjust the process as necessary.
• Lead by example: The board should lead by example and demonstrate the importance of consensus decision making. Encourage members to follow the same principles and processes in their own decision-making.
• Keep it alive: Consensus decision making should be an ongoing process, not a one-time event. Continuously encourage open communication, active listening, and participation from every member.

By following these best practices, you can help to maintain a culture of consensus decision making in the boardroom, which in turn can lead to better outcomes and results for the organization. Remember, effective consensus decision making requires patience, flexibility, and a willingness to compromise.

Making decisions through consensus in a boardroom is a strong and effective strategy. All members' opinions are valued, open communication and active listening are encouraged, and the company benefits from higher effectiveness, increased buy-in, and better outcomes.

However, it takes perseverance and dedication to establish and uphold consensus decision making in the boardroom. Board directors may make consensus decision making a useful and efficient instrument for decision making by creating clear guidelines, promoting participation, fostering open communication, and routinely reviewing and reflecting on the process.

It is crucial to keep in mind that reaching consensus on decisions is not always simple and may call for tolerance, adaptability, and a readiness to make concessions. But with the correct strategy and commitment, the advantages of consensus decision outweigh the alternatives.

About the author … Dr Jason Talbot is a Fellow of the Governance Institute of Australia, a Chartered Accountant and the Managing Director of Graphite i2i, a specialist boutique management consulting firm which provides governance, strategy, business transformation, performance improvement, and M&A services to medium and large organisations. The company’s highly innovative business assessment and transformation methodology, ₆C Framework, provides CEOs and Boards with a holistic view and understanding of their business’ capabilities, allowing them to readily identify areas in greatest need of attention or determine where future opportunities lie.