Tuesday, May 23, 2017

Setting Digital Principles for Effective Decision-Making

Fundamentally, an organizational management is a decision management and performance management continuum.

A decision is arguably a choice between two or more options. The greater majority of these options are circumstantially provided. Even with the best systems and processes, there is no “magic formula” to guarantee that you will take good decisions. Therefore, it’s crucial to set digital principles that allow different people at different organizational levels to make their own decisions individually to run in the same direction and meet the same objectives in a consistent and rapid manner and improve the decision effectiveness of the business. From the business management perspective, decision principles provide a foundation for decision-making scenario throughout an enterprise and inform how the organization sets about fulfilling its vision and goals.

Decision-making is the discipline across the art and science; gut feeling and information; confidence and humility: There is no magic decision formula. Decision making is an art only until the person understands the science. The science of decision-making is to make sure there is an effective decision process in place. You need to both frame the right issues as well as decides how to deal with them in a structural way. People need to leverage both critical thinking and creative thinking to ask tough questions for framing the real issues behind decision making. If the decision-making process is well designed & well executed, you have the highest probability of getting the best outcome. An effective process does decrease the risk of the wrong choice, not eliminate it. A good process can still get adverse outcomes. The art of decision-making is based on a sound judgment, mixing feelings and reflection, inner wisdom and self-regulation.

Team (with heterogeneous setting) decision works because they bring different perspective and information to the table: Teams decision works because they bring different perspectives and information to the table. They help balance out the biases that from which we all suffer. They help to generate more of everything (viable alternatives, criteria, etc.) all of which is shown to improve the quality of decisions. An effective decision-making scenario takes the good alignment of people, process, and technology. The process organized through the software helps to organize the goals, and stimulate healthy debates. As a result, the debate in the decision-making sessions cut out the bickering about the input and more about expected outcome to meet the goals of the group, and improve decision making effectiveness.

It is often said that a wrong decision taken at the right time is better than a right decision taken at the wrong time: Fast decisions are made of necessity. But a condition of benefiting from considered decisions is having a good decision -making process to use the time effectively.  Potentially, longer time frames allow the creation of more alternatives from which to choose, using both rational and instinctive knowledge. Time also allows a decision-making process to emerge by consent. Do some systematic analysis in order to create more updated processes to smoothie the decision-making scenario. Any decision made needs to be applicable in a timely manner. The decision-making always contains a part of the risk. Deferring decision-making is an essential aspect of human factors, putting off making decisions till tomorrow that is needed today is one of the signs of dysfunctional management. There are quite a few decision-making pitfalls, such as communication/decision bottleneck, out of the dated process, procedure, practice, culture, politics or leadership style, etc. The decision effectiveness is to make sure decisions are being taken neither impulsively nor too late, in order to take actions at the right time for responding to changes.

The blind spots are perhaps inevitable, the point is how today’s decision makers learn to deal with them seamlessly: The reason decision making is often a difficult task because it is contextual and situational; it takes a unique individual to understand a situation and relates it to the present, and there is no magic formula to follow. There is fuzziness in the decision because there is fuzziness in conflicting criteria, and there are hidden barriers on the way. As the matter of fact, there are so many reasons decisions could be bad, the effort should be to focus on the most dangerous causes of bad decision-making. .There is the danger of super specialization, which can deprive people of a holistic understanding of the situation in order to make effective decisions. Many teams still operate with an incomplete and relatively small view of the world. Thus, too often in an effort to keep moving forward, they jump to the wrong conclusion. There are also many senior leaders who fail to deal with blind spots because arrogance clouds their eyes; unconscious bias causes poor judgment, or they have a very homogeneous team who always “think the same.” In reality, many poor decisions are made by very intelligent people. It is the responsibility of each individual to examine themselves and their decision-making scenario to make sure they are open to true understanding for achieving decision maturity.

Decision maturity is to ensure the right decisions have been made by the right people at the right time to solve the right problems: The key decision factor is how you frame the issue (to be decided on), another factor needing more attention is who makes the decision, in particular, why is it that in business decisions are ultimately made by that person. Decisions are still made by people, so the challenge is to get the relevant people communicating with each other more efficiently, and making the best use of the digital tools. And for the same reason, you need a sound process to frame the decision, spec out your options, weigh them appropriately with the right people, to make sure decisions are being executed and not permanently questioned. Collectively, the effective decision can be made when people looked at an organization as a whole rather than single items. That means the effective decision making is based on understanding relationships between activities inside as well as outside an organization, having the right people with the right information, following a systematic decision-making process for making the right choices timely.

One significant effect of digitization is increased velocity, complexity, unpredictability, and a need for a faster response to changes in businesses based on effective and efficient decision making. Either individually or collectively, it takes practice, practice, and practice more to improve decision effectiveness and maturity.


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