4 of 15

Managerial decision making and the decision process

by Charles Ray

MAKING EFFECTIVE DECISIONS




Leadership is all about decision making. As a leader you must decide the what, where, why and who for your organization. Effective decision making leads to success for the organization, and by extension, for the leader.

If you look at the history of organizations, most failures have been the result of faulty decisions by the person in charge. The Vietnam War is a prime example. While there have been many reasons given for why the U.S. lost that war; political meddling, unfriendly media coverage, and the like; much of the fault lies at the feet of those making the decisions. From the top down; Presidents who tried to run' the war from the White House; senior defense leaders who focused on numbers rather than what was actually happening on the ground; commanders who were fighting the wrong war. While the courage and tenacity of the enemy can't be ignored, better decisions could have given a different outcome.

The key to making good decisions is to have a sound process or series of steps from start to finish. A study of leadership and management texts provides a number of processes from a simple three-step process to as many as seven steps. A process is a series of steps that are interrelated and follow a specific methodology. Over the past 45 years, I have found use of a four-step process most useful in guiding me to sound decisions.

The four steps are:

1. Define the problem

2. Gather data

3. List and evaluate alternatives

4. Chose and implement the best alternative

Define the problem

In getting any job done, it is best to start at the beginning. The first step in making a decision is to have a clear understanding of the problem that is to be solved. This could be thought of as The Job to Be Done. In this part of the process you establish the context of the problem and set goals. It is extremely important to have a clear understanding of what you are trying to decide.

This is the step in the process where you must determine if, in fact, any action is needed. Don't waste time trying to solve problems that don't need to be solved, keeping in mind that not doing anything is in itself a decision.

Gather information

During this step in the process, we determine what information or data is applicable to the job to be done. Information gathering can be done through research, experimentation or brainstorming. It is important during the information gathering phase to consult with all actors who have equity in the problem to be solved.

As data is accumulated, it should be evaluated for its impact, positive or negative, on the problem at hand. Be aware during this phase of how your cognitive and personal biases affect how or even whether you take in information. Your cognitive preference, whether you are intuitive or analytical, will determine what types of information you prefer and how you prefer to receive it. Be aware of this so that you are can take full advantage of the total range of information that is potentially available. It is also essential not to let personal bias distort data. We all have a human tendency to prefer information from sources we like, and to want avoid information from those we dislike or distrust. If your decisions are to be effective, you must be aware of your personal feelings and seek ways to mitigate their effect on your assessment of the information that is presented to you.

List and evaluate alternatives

In the military planning process, analysis of course of action (COA) is an essential element of preparation of battle plans and campaigns. Several possible COAs are developed for each mission, which are then carefully analyzed for presentation to the commander's final decision. The advantages and disadvantages of each COA are compared, with focus on the job to be done. The costs, benefits and collateral (second and third order effects) impact are compared, along with all known potential obstacles to achieving the desired outcome.

It is useful during this step to list the courses of action side by side and conduct a plus/minus review of advantages and disadvantages. The objective is to develop that course that is the "best" solution for the problem; the solution that gets the job done with optimum results and best use of available resources.

Chose and implement a course of action

This is where the rubber meets the road. A decision is made. During the implementation phase of the process, you should constantly evaluate progress and make adjustments as necessary, keeping the desired end state firmly in mind. If necessary, go back to step one and review the job to be done, or goal, to make sure you have fully understood what your objective is.

This step is not the time to be tentative. Once you have made a decision, and assuming that you are evaluating as you go along, don't waste time second guessing or fretting. As an old drill sergeant once said to me and a bunch of other raw recruits in basic training, "Make a decision, even if it's wrong. You can always change it. But, if you do nothing when action is called for, you will find yourself in a hole that is hard to dig out of."

Helium, Inc.
200 Brickstone Square Andover, MA 01810 USA