Decision effectivess correleates positively with employee engagement and organizational performance...
Decisions are the basic steps to improve organizations and these decisions drive performance. However, there are some impediments that drive good decision making. This is especially true for the more complex and larger companies since organizational structures have changed due to the dynamics of the world of business today.
In years past, an organizational chart would clearly identify who within the hierarchy of the organization was the key decision maker. In today’s business approaches, organizations are structured differently and it is not as clear as to who is actually making the decisions. This creates impediments since it creates uncertainty of who is making the decisions and are they making the decisions that really matter.
Also, there are other impediments which include information flow. This relates to essential and/or the right information NOT getting to those individuals for making sound decisions. In addition, other areas such as leadership’s negative behaviors, as well as, not having the right talent in key roles for decision making create impediments. Basically, what are the decisions? Who is making the decisions? Do the decisions really matter?
Q - Is considered; intuitive. Is it a good decision?
S - How quick do we make important decisions?
Y - How well did we execute this decision?
E – Did we use the right amount of effort to make the decision? Execution and costs.
I would add one more element; being the first element to address - priority (P).
P – Is this one of my top priority areas of concern for my organization?
There are 5 key processes for decision making:
- Metrics - Understanding how well you are doing on making decisions, bench mark them and see how they stack up. This allows you to see how well you are doing and how to improve; basically an assessment. An example is that you may be doing very well as a company with respect to quality and execution, but not so good at speed. By doing metrics to see the health of how you are doing will allow you to see where you can improve. This is part of the decision effectiveness process and determines organizational barriers. It will also allow you to put a process in place to improve, as well as, transform the decision making process capabilities to deliver.
- Prioritization of Decisions - Identify the critical decisions, what matters the most, use a methodology to work through the decisions; both from a strategic and operational perspective; prioritizing them. This will help to realize critical decisions and the next steps to determine solutions. When determining the prioritization of decisions, it is also important to look at all factors to include the cumulative effect on decisions – decision architecture that lay out the requirements and then prioritize. Include the cumulative value within the scope of prioritization of changes as part of the improvement potential – get top 20-25 decisions that are needed.
- The - who, what, how and when – framework for the decisions. These are key elements for decision making since there needs to be an assignment to each. What is the decision to be made? Who is the decision authority? How will we make this change? When is this change required?
- Another important step in the process is to make sure the rest of the organization business areas can support the decisions such as the culture, talent, skills, etc.
In my current position, I plan to use these elements and processes to take a different look at how I can implement and improve areas of decision making. This will include metrics management of how well we are doing and areas of improvement.