Effective decision-making provides the organization with a unified direction aimed at achieving a primary objective and possibly one or more secondary objectives. Regardless of the decision’s complexity or its immediacy, the probability of achieving a successful outcome is directly related to the organization’s ability to execute the decision in a deliberate and focused manner. It is for this reason that decisions and direction for their execution should come from one individual.[wcm_restrict plans=”49219, 25542, 25653″]
Decision-making by committees or groups tends to increase the risk of failure. Perception and interpretation of circumstances varies from person-to-person. These variations result in differences between how we as individuals deal with particular circumstances and execute directives. When making decisions as a group, these variations often result in compromises, diluting the organization’s response and increasing the risk of missing stated goals. Likewise, direction coming from multiple sources may defuse the organization’s efforts or worst; result in confusion and conflict, thereby increasing the risk of an undesired outcome. Finally, shared decision accountability results in no accountability at all; frequently degrading to finger pointing or credit grabbing depending on the outcomes achieved.
Decision-making led by a single, accountable individual affords an organization several advantages:
concentrated, unified effort derived through the elimination of variation associated with multiple individuals interpreting circumstances and directions
centralized command and control that mobilizes needed personnel, material, and financial resources thereby preventing a stalled response
effective oversight of actions taken in response to the opportunity or problem; maintaining a clear picture of the integrated impact of the decision’s execution, enabling timely execution adjustments as conditions change, and ensuring the organization’s broader interests are met
Not every leader exhibits personal traits and possesses the positional power needed to be a decision’s single point of accountability. When assigning the roll of decision-maker, the following conditions should be considered:
Does the individual possess the decision-making ability commensurate with the complexity and risk associated with this issue?
Does the individual possess the positional, personal, and intellectual power needed to both authorize the resource expenditures and direct the actions needed to make and execute the decision?
Is the individual organizationally positioned such that he/she can look down at the problem and see the entire, integrated nature of the issue?
There are some organizations and circumstances requiring decision-making by committee. While the There Can Be Only One best practice does not apply in these instances, these organizations or circumstances do not benefit from strong centralized decision-making and tend to be slower to change and slower to achieving results. In these cases, the less rapid response time should be factored into the decision-making time frame to help improve the chances for success.[/wcm_restrict][wcm_nonmember plans=”49219, 25542, 25653″]
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Nathan Ives is a StrategyDriven Principal and Host of the StrategyDriven Podcast. For over twenty years, he has served as trusted advisor to executives and managers at dozens of Fortune 500 and smaller companies in the areas of management effectiveness, organizational development, and process improvement. To read Nathan’s complete biography, click here.
https://www.strategydriven.com/wp-content/uploads/OnlyOne.jpg282425StrategyDrivenhttps://www.strategydriven.com/wp-content/uploads/SDELogo5-300x70-300x70.pngStrategyDriven2007-09-15 07:31:212018-12-24 16:17:16Decision-Making Best Practice 1 – There Can Be Only One
Strategic certainty does not exist. Organizations should, however, leverage a good strategy to establish the vision toward which executives and managers focus employee efforts. Vision combined with excellent execution that reinforces desired behaviors generates a high degree of organizational alignment and accountability that in turn propels the organization toward a more focused and committed, if somewhat uncertain, destiny.
The StrategyDriven website was created to provide members of our community with insights to the processes and actions that can be taken to create the shared vision, focus, and commitment needed to improve organizational alignment and accountability for the achievement of superior results.
StrategyDriven Contributors look forward to answering your strategic planning and tactical business execution questions. Please email your questions to [email protected].
The Advisor’s Corner expands on the strategic planning and tactical business execution dialogue between StrategyDriven contributors and our websites visitors. Postings in this category reflect questions asked by StrategyDriven members and guests and the advice provided by one or more of our highly experienced business professionals. Additionally, StrategyDriven members are provided the opportunity to share their insights and experiences by way of comments and feedback to the individual postings.
All visitors to the StrategyDriven website are encouraged to submit their questions to The Advisor’s Corner by email at [email protected] or by using the ‘Email The Advisor’s Corner’ link located on the right sidebar on the StrategyDriven website. If desired, questions may be submitted anonymously to maintain confidentiality.
Organizational alignment to common goals suggests executive, manager, and employee motivation is largely driven by the company’s strategic plan. However, there are likely some additional, hidden performance drivers unintentionally created by the organization’s processes or embedded as an integral component of the organizations’ history and culture.[wcm_restrict plans=”25541, 25542, 25653″]
When performing an organizational assessment, it is important to seek out and identify these hidden performance drivers and then to evaluate their alignment with the organization’s overarching purpose. Likewise, it is important to understand where misalignments exist and whether or not they are resulting in behaviors detrimental to the achievement of the mission.
Hidden drivers are characterized as such because they are not the highly publicized measures of performance or operating philosophies commonly known by all members of the organization and often by stakeholders, shareholders, and the general public. Instead, hidden drivers often go unrecognized; uniquely influencing the individuals or small groups to whom the policy, procedure, or history applies.
Hidden drivers can be in both documented and undocumented form. Examples of documented drivers include: performance incentive program measures, performance incentive program time horizons, policies, procedures, and individual and work group performance measures. Undocumented influencers typically represent organizational culture and biases, including: complacency resulting from unevaluated, repetitive, and long-standing successes; an organizational tendency to shoot the messenger, and preferential treatment given or deferment of decisions to particular business units or individuals perceived as being important.
Hidden drivers are not necessarily detrimental to the organization’s performance. It is important, however, that they be understood and assessed to ensure business planning and execution efforts are not diminished or undermined by these influencers of behavior.[/wcm_restrict][wcm_nonmember plans=”25541, 25541, 25653″]
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Nathan Ives is a StrategyDriven Principal and Host of the StrategyDriven Podcast. For over twenty years, he has served as trusted advisor to executives and managers at dozens of Fortune 500 and smaller companies in the areas of management effectiveness, organizational development, and process improvement. To read Nathan’s complete biography, click here.
https://www.strategydriven.com/wp-content/uploads/iStock_000003820694XSmall.jpg327367StrategyDrivenhttps://www.strategydriven.com/wp-content/uploads/SDELogo5-300x70-300x70.pngStrategyDriven2007-09-11 18:54:492019-04-30 19:42:11Strategic Analysis Best Practice 3 – Identify the Hidden Drivers
StrategyDriven contributors are pleased to announce the release of our third model, Business Process Relationships. This model illustrates the many interrelations between the strategic business planning and tactical business execution processes. Additionally, the model provides a framework against which to association the many best practices posted on the StrategyDriven website.
https://www.strategydriven.com/wp-content/uploads/SDELogo5-300x70-300x70.png00Nathan Iveshttps://www.strategydriven.com/wp-content/uploads/SDELogo5-300x70-300x70.pngNathan Ives2007-09-10 08:01:512013-06-30 16:17:02New Model Released – Business Process Relationships
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Decision-Making Best Practice 1 – There Can Be Only One
/in Decision-Making, Premium/by Nathan IvesDecision-making by committees or groups tends to increase the risk of failure. Perception and interpretation of circumstances varies from person-to-person. These variations result in differences between how we as individuals deal with particular circumstances and execute directives. When making decisions as a group, these variations often result in compromises, diluting the organization’s response and increasing the risk of missing stated goals. Likewise, direction coming from multiple sources may defuse the organization’s efforts or worst; result in confusion and conflict, thereby increasing the risk of an undesired outcome. Finally, shared decision accountability results in no accountability at all; frequently degrading to finger pointing or credit grabbing depending on the outcomes achieved.
Decision-making led by a single, accountable individual affords an organization several advantages:
Not every leader exhibits personal traits and possesses the positional power needed to be a decision’s single point of accountability. When assigning the roll of decision-maker, the following conditions should be considered:
There are some organizations and circumstances requiring decision-making by committee. While the There Can Be Only One best practice does not apply in these instances, these organizations or circumstances do not benefit from strong centralized decision-making and tend to be slower to change and slower to achieving results. In these cases, the less rapid response time should be factored into the decision-making time frame to help improve the chances for success.[/wcm_restrict][wcm_nonmember plans=”49219, 25542, 25653″]
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About the Author
The Advisor’s Corner – Guaranteed Future?
/in The Advisor's Corner/by StrategyDrivenQuestion:
Can a good strategy define a company’s future?
StrategyDriven Response:
Strategic certainty does not exist. Organizations should, however, leverage a good strategy to establish the vision toward which executives and managers focus employee efforts. Vision combined with excellent execution that reinforces desired behaviors generates a high degree of organizational alignment and accountability that in turn propels the organization toward a more focused and committed, if somewhat uncertain, destiny.
The StrategyDriven website was created to provide members of our community with insights to the processes and actions that can be taken to create the shared vision, focus, and commitment needed to improve organizational alignment and accountability for the achievement of superior results.
StrategyDriven Contributors look forward to answering your strategic planning and tactical business execution questions. Please email your questions to [email protected].
The Advisor’s Corner Introduction
/in The Advisor's Corner/by StrategyDrivenAll visitors to the StrategyDriven website are encouraged to submit their questions to The Advisor’s Corner by email at [email protected] or by using the ‘Email The Advisor’s Corner’ link located on the right sidebar on the StrategyDriven website. If desired, questions may be submitted anonymously to maintain confidentiality.
Strategic Analysis Best Practice 3 – Identify the Hidden Drivers
/in Premium, Strategic Analysis/by Nathan IvesWhen performing an organizational assessment, it is important to seek out and identify these hidden performance drivers and then to evaluate their alignment with the organization’s overarching purpose. Likewise, it is important to understand where misalignments exist and whether or not they are resulting in behaviors detrimental to the achievement of the mission.
Hidden drivers are characterized as such because they are not the highly publicized measures of performance or operating philosophies commonly known by all members of the organization and often by stakeholders, shareholders, and the general public. Instead, hidden drivers often go unrecognized; uniquely influencing the individuals or small groups to whom the policy, procedure, or history applies.
Hidden drivers can be in both documented and undocumented form. Examples of documented drivers include: performance incentive program measures, performance incentive program time horizons, policies, procedures, and individual and work group performance measures. Undocumented influencers typically represent organizational culture and biases, including: complacency resulting from unevaluated, repetitive, and long-standing successes; an organizational tendency to shoot the messenger, and preferential treatment given or deferment of decisions to particular business units or individuals perceived as being important.
Hidden drivers are not necessarily detrimental to the organization’s performance. It is important, however, that they be understood and assessed to ensure business planning and execution efforts are not diminished or undermined by these influencers of behavior.[/wcm_restrict][wcm_nonmember plans=”25541, 25541, 25653″]
Hi there! Gain access to this article with a FREE StrategyDriven Insights Library – Sample Subscription. It’s FREE Forever with No Credit Card Required.
In addition to receiving access to Strategic Analysis Best Practice 3 – Identify the Hidden Drivers, you’ll help advance your career and business programs through anytime, anywhere access to:
Best of all, it’s FREE Forever with No Credit Card Required.
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About the Author
New Model Released – Business Process Relationships
/in Announcements/by Nathan IvesStrategyDriven contributors are pleased to announce the release of our third model, Business Process Relationships. This model illustrates the many interrelations between the strategic business planning and tactical business execution processes. Additionally, the model provides a framework against which to association the many best practices posted on the StrategyDriven website.