Posted by: beaconadvantage | August 11, 2008

Decision Making as a Process – Not an Event

A Harvard Business Review study surveyed more than 350 global companies about their organizational effectiveness. Only 15 percent of this group said that they have an organization that helps their business outperform competitors. What sets these top performing companies apart? Quality, speed and execution of decision making.

Only 15 percent – that is amazing.

WHY THIS OCCURS

There are many theories. Here are a few I have found in my work as a consultant and through researching articles and studies as the biggest obstacles to more effective decision making:

  1. Lack of role clarity. Who makes what decisions, at what level and at what location?
  2. Decisions are treated as a one time event as opposed to a process.
  3. Not having clear communication about a decision and implementation for all people in organization.

One approach on how to improve the decision making in organizations was the program outlined in last month’s Beacon’s Guide, Right Decisions Made Right by Discovery Learning. Another approach is one that David A. Garvin and Michael A. Roberto outline in their article, in HBR, What You Don’t Know About Decision Making which they define as Inquiry Decision Process.

INQUIRY DECISION DecisionPROCESS

Inquiry decision views the concept of decision making as a collaborative problem solving process. During the process there are on-going testing and evaluations. Each person in the process takes on a critical thinking role. Balanced arguments are presented, openness to alternatives needs to exist as well as the ability to accept and give constructive feedback. During the process all views are cultivated – none are dismissed or discouraged – they are only evaluated.

By instituting decision making as a process, the inquiry approach will become second nature in an organization. Decisions will become more effective, come more quickly and are implemented. My clients all indicate this as something they all would like to have happen in their organizations.


Email Allison at aemeyer@beaconadvantage.com.


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