tma world viewpoint 35: a guide to effective decision making
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Effective decision making can be a complicated process, which requires leaders and managers to gather all available and relevant facts and take account of the consequences of their decision on their team and organization. This TMA World guide has been prepared to assist leaders and managers in making the decisions that best benefit themselves, their team and their organization.TRANSCRIPT
A Guide to Effective Decision Making
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Effective Decision Making
When it comes to decision
making, it’s a simple truth that
not enough managers commit
a sufficient amount of time or
attention to how they
approach this crucial process.
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Effective Decision Making
Ineffective decision making
can lead to numerous
problems and take up valuable
time and resources to correct.
At the very least, poor
decisions hamper performance
and achievement of the goals
set.
At worst, it can lead to the loss
of livelihoods — or even lives,
depending on the type of
business you’re involved in.
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So what is the root cause of this?
Not surprisingly – there can be many reasons.
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Effective decision making
For some, it’s a question of procrastination. This tends to be amplified when the decision to be made is a critical one with significant consequences if things don’t go according to plan. For others, it can be a question of going with your gut instinct as that’s the way you’ve always approached it.
Another reason can be because a manager has weak prioritization skills – not investing the time and effort required to gain all the necessary information that will facilitate a good decision making strategy.
Leadership style may also play a factor in the quality of a decision made.
Do you delegate instead of direct?
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Effective decision making
Do you direct when you should be taking a more consultative approach and involving the relevant parties in the decision making process?
Throw into the mix the need to consider the issue of ethics when making decisions and you can see how many managers can stumble into any one of the numerous potholes peppered in the road that leads to successful decision making.
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This begs the question:
What does it take to
make good, sound
decisions?
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Different decisions require different approaches!
First of all, when approaching the decision making process, it’s not one size fits all.
A major challenge for even the most experienced of managers is acting out of habit and going with what they are familiar with.
Effective managers know this and understand that different decisions require different approaches.
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Different decisions require different approaches!
Decisions come in all shapes and sizes; some are simple – others more complex. Some decisions are required to be made in real time, others are more strategic, longer-term plans.
However, the key point to note here is that the particular circumstances surrounding a decision should guide the approach taken as much as is feasibly possible.
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Hierarchical, top down
Those different decision making approaches include:
Authoritarian
Collaborate as a team to reach an agreement Consensus
Triggers based upon facts Contingent
Voting or polling methods, allowing the majority vote to decide
Democratic
Nominate a person or group to decide Elected
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Understanding and choosing the right approach will increase the likelihood of the right decision being made.
Once this has been done, a manager needs to consider a process to put in place. A suggested process for effective decision making involves:
Identifying the
necessary roles
Evaluating
information
Clearly defining
the problem
Identifying
alternative
solutions
Selecting the
best solution
Gathering
information
systematically
Validating the
solution
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An ethical decision making tool: IRIS
The IRIS tool is a robust
means of asking a manager to
analyze and consider all angles
of an issue rather than solely
considering what is right or
wrong.
When applying IRIS, a
manager is required to
scrutinize the issue at hand,
asking:
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What could do?
What should I do?
What must I do?
When they have come to their decision a further question needs to be answered: Does the decision I have made still stand the test of scrutiny?
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The following provides the considerations at each phase
Identify:
The participants: Who are the key stakeholders?
The potential effects: How is the key stakeholder potentially affected?
The perspectives: What are the competing perceptions of the situation?
Pinpoint the issues: What are the specific issues and concerns?
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The following provides the considerations at each phase
Reflect on:
The options: What are the options and the associated risks?
The objections: How will stakeholders respond? What objections may arise?
The outcomes: What are the potential intended and unintended consequences of the options in terms of the duration and severity of their impact?
Then optimize: What decision produces the optimal result?
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The following provides the considerations at each phase
Integrity of the decision so that it is:
Compliant: Is the decision fully compliant?
Consistent: Is the decision consistent with the core values of the organization?
Candid: Is the decision open and transparent?
Clear: Is the decision ethically comprehensible to stakeholders?
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The following provides the considerations at each phase
Scrutiny: Of the decision
Discern: What ‘message’ does the decision convey?
Distort: Can it be a misunderstood or misrepresented decision?
Durability: Will the decision withstand scrutiny today and in the future?
Diminish: Could the decision diminish or damage the reputation of the organization?
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Quick Decision Making
Finally, let’s consider some of the success factors behind quick decision making
Don’t rush unnecessarily:
Assess if it’s both important and urgent
Have all necessary information:
If the information can be obtained quickly, then get it
If it cannot be obtained
• What worked before?
• Who has more experience?
Review your decision afterwards:
How can such a situation be prevented?
Can you make a checklist?
What went well, what did not?
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Effective Decision Making
This article has addressed the
consequences of not getting
decision making right and
has presented some best
practice tips that will ensure
a greater chance of success.
Doing this will allow any
manager to avoid those
potholes and move forward
with greater confidence.
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Above all we’d like to hear from you directly, so please don’t hesitate to send any comments, questions or feedback
to us at: [email protected]
Or visit our website:
www.tmaworld.com
About Us
Visit
www.tmaworld.com/insights
to discover the latest
thinking from our experts
on global, collaborative,
cross-cultural and virtual
working.