TMA World Guide to Effective Decision Making

A GUIDE TO

Effective Decision

Making

Create success through effective decision making

A Guide to Effective Decision Making

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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.


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.


So what is the root cause of this?

Not surprisingly – there can be many reasons.

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.


So what is the root cause of this?

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.


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.

Do you delegate instead of direct? Do you direct when you should be taking a more consultative approach and involving the relevant parties in the decision making process?


This begs the question:

What does it take to make good, sound decisions?

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. 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.


The particular circumstances surrounding a decision should guide the approach taken as much as is feasibly possible.

Those different decision making approaches include:

Authoritarian: Hierarchical, top down

Consensus: Collaborate as a team to reach an agreement

Contingent: Triggers based upon facts

Democratic: Voting or polling methods, allowing the majority vote to decide

Elected: Nominate a person or group to decide


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

Clearly defining the problem

Gathering information systematically

Evaluating information

Identifying alternative solutions

Selecting the best solution

Validating the solution


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:

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?

What could I do?

What should I do?

What must I do?


The following provides the considerations at each phase:

I R I S

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?



I R I S

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?


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?


I R I S


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?


I R I S


Quick decision making

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?


To learn more about how we can help your organization,

please contact us at

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http://www.tmaworld.com/training-solutions/

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TMA World Guide to Effective Decision Making