Decide & Deliver
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Decide & Deliver

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How to enable your decision making effective,

How to enable your decision making effective,

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Decide & Deliver Decide & Deliver Presentation Transcript

  • Decide & DeliverKNOW YOUR DECISION EFFECTIVENESS1
  • Five steps to improve decisioneffectiveness01Assessdecisioneffectivenessandorganizationalhealth02Identify thecriticaldecisions03Set upindividualdecisions forsuccess04Alignorganizationto supportdecisions05 Embed decision capabilities and sustain results2
  • What is Decision EffectivenessDecisionScoreQuality Speed Yield EffortDecision = Performance Quality, Speed and Yieldreinforce one anotherEffort is a drag There are few trade-offsRemember3There is always room forimprovement
  • Where are the decision barriers Structural sclerosis Decision ambiguity Process paralysis Data dysfunction Misaligned measures Blurred vision Consensus overdose Talent deficiency Behavior breakdown Performance anemia4
  • How to tackle Organizationdecision challenge5Decision Score Card• It will tell how well or poorly you‟re doing on decisions. It includesassessment of all the elements of decision effectiveness (decisionquality, speed, yield)Organizational Score cards• It shows the element of the organization that may be hinderingpeople making decisions quickly and implementing themeffectively
  • The Decision scorecard “quick test”When making critical decisions, we choose the right course of action:4 - > 75% of the time3 – 51 – 75% of the time2 – 26 – 50 % of the time1 - <= 25% of the time1 2 3 4Quality - QWe make critical decisions:4 – Much faster than competitors3 – Somewhat faster than competitors2 – Somewhat slower than competitors1 - Much slower than competitorsSpeed - SWe execute critical decisions as intended:4 - > 75% of the time3 – 51 – 75% of the time2 – 26 – 50 % of the time1 - <= 25% of the timeYield - YIn making and executing critical decisions:4 – We put in exactly right kind of effort3 – We put in some what too much/ too little vs. amount we should2 – We put in way too much/ nowhere near effort vs. amount we should1 – We are off the chartsEffort - E> 25 = Top quartile – You‟re doing great, keep it up21-25 = Second quartile – Pretty good, but could be great16-20 = Third quartile – Worse than 50% of companies, time to ACT!15 or less = Bottom quartile – Major decision reboot required!Total Score[ Q * S * Y * (E/4)] _ _ _ _ _ _ _ _1 2 3 41 2 3 41 2 3 4Instruction Read each question and check the scorethat corresponds to the answer that bests fitsyour organization To get your total score, multiply the first 3scores together, Then multiply that result bythe Effort score divided by 4 For example, if you circle 3,4,2,3, you wouldcalculate your total as 3*4*2*[3/4] = 18Copyright 2010 Bain % Company, Inc. No rights reserved6
  • Decision scorecard ”read out” exampleQuality - QSpeed - SYield - YEffort - ELow- qualitydecisionsDecisionspeed slowerthancompetitors‟Poorexecution ofdecisionsToo much /too littleeffortHigh- qualitydecisionsDecisionspeed fasterthancompetitors‟Strongexecution ofdecisionsExactly rightamount ofeffort1 2 3 4Top quartile> 25Secondquartile21-25Third quartile16-20Bottomquartile15 or lessTotal scoreversusbenchmarkTotal Score (decisions) Multiply Q * S * Y * E/4 = 187
  • Organization scorecard “quick test”StructureRolesProcessesInformationMeasuresandincentivesDecisionstylePeopleBehaviorCultureOur structure helps, rather than hinders, the decision most critical to our successIndividuals are clear on their roles and accountabilities in our most critical decisionsOur processes are designed to produce effective, timely decisions & actionThe people in critical decision roles have the information they need when & how they needOur measures and incentives focus people on making and executing effective decisionsWe make decision in style that is effective ; e.g. a style that appropriately balancesinclusiveness with momentumWe put our best people in the jobs where they can have the biggest decisions impactOur leaders at all levels consistently demonstrate effective decisions behaviorsOur culture reinforce prompt, effective decisions and action throughput the organization1 2 3 41 2 3 41 2 3 41 2 3 41 2 3 41 2 3 41 2 3 41 2 3 41 2 3 4Instruction Read each question andcheck the score thatmatches your level ofagreement/disagreement with the statement 1= Strongly disagree , 2=Disagree more thanagree , 3= Agree morethan disagree, 4= Stronglyagree To get your total score,add up your individualscore> 35 = Top quartile – You‟re doing great, keep it up21-35 = Second quartile – Good but room for improvement16-20 = Third quartile – Organization is serious barrier to decisions15 or less = Fourth quartile – Major organization transformation requiredTotal Score[Add all scores] _ _ _ _ _ _ _ _(Min = 10, Max = 40)Copyright 2010 Bain % Company, Inc. No rights reserved8
  • Organization score card ”read-out” exampleStructureStructuralsclerosisBlurred vision1 2 3 4Top quartile> 35Secondquartile31-35Third quartile26-30Bottomquartile10 - 25Total scoreversusbenchmarkTotal Score (organization) Add all scores = 27DecisionambiguityProcessParalysisRolesProcessesInformation DatadysfunctionMeasure &incentivesMisalignedmeasuresPrioritiesDecision style ConsensusoverdosePeople TalentdeficiencyBehaviorsBehaviorbreakdownCulture PerformanceanemiaStructuralalignmentDecision roleclarityProductiveprocessesEffectiveinformationMeasuresthat matterClear visionEffectivedecision styleWell deployedtalentRole modelBehaviorPerformancepassion9
  • Why some decisions need moremanagement attention?Complexity•Decision involving many stakeholders or complex processes with multiple hands-off mayrequire a lot of attention and effort to get rightDegree of change•If a decision is likely to be affected by a proposed change, such as a new organizationalstructure, those involved will need to know how it is supposed to work in the futureScope for improvement•A decision that is not working probably needs more attention than that‟s going wellUtility as pilot•Some decisions can be set as Pilot for improving decision effectiveness10
  • Decision X- ray “snapshot”Decision: [write decision here]Decisioneffectiveness4 – Strongly Agree3 - Agree2 - Disagree1 - Strongly disagree4- Much faster3 – Somewhat faster2 – Somewhat slower1 - Much Slower4 – Strongly Agree3 - Agree2 - Disagree1 - Strongly disagree4 – Exactly the right amount3 – A bit too much/little2 – Way too much/little1 – Off the chartsQualityIn retrospect, we made the rightdecision:SpeedRelative to competitors, we madethe decision:YieldWe executed the decision asintended:EffortThe level of effort we applied was:Organization strengths / barriersRating Comments4- Strongly agree; 3- Agree; 2 – Disagree ; 1 – Strongly disagree• Our structure facilitated making and executing the decisionwell and quickly with the right effort• Decision roles were clear and appropriate• We used a robust decision process• We had the right information at the right time• People‟s objective and incentive reinforced the rightdecision and action• Participant had the right context to make and execute thedecision• We used an appropriate decision style• We had the right skills and talent in right decision roles• Participant demonstrated good decision behaviors• Our culture reinforced making and executing the decisionwellCopyright 2010 Bain % Company, Inc. No rights reservedInstruction Select a decisionto X-ray Rate the decisionon quality, speed,yield & effort Rate your level ofagreement witheach statementon organizationallevers and notecomments tobring your scoreto life11
  • Decision X-ray “day in the life”Decision: [write decision here]Process Month 1 Month x Month y Month zGroup or person 1Group or person 2Group or person 3Group or person xGroup or person yGroup or person zStep 1Step 2Step 3Step 4Step 5Step 6Step 7 Step 8Step 9DecisionDecision DecisionImplementationIssue 2(e.g. revisitingdecision leads tounnecessary loops)Issue 1(e.g. unclearcriteria lead to rework ininput Issue 3 9e.g. follow up withkey group late in process setsback timingIssue 4 (e.g. lateengagementwithimplementerleads to lastminutechanges /delayInstruction Sketch outthe basicprocesssteps forhow thedecisionworks today Highlightissues anddisconnectsin callouts,reflectingon unnecessaryloops,processdisconnectsandalignmentsissues.12
  • Clarifying the “what-who-how-when” tomake critical decisions humWhat?• Define the decision we are actually trying tomake• Frame the decision in an appropriate way• Split the decision into sub decisions ifnecessaryWho?• Clarify up front who will play what role ineach decision 9e.g., decision maker,recommender.When?• Clarify timelines for decision and executionand key milestones• Create a decision calendar for ongoing,interconnected decisionHow?• Install structured decision approach• Design and specify:- interaction- Critical meeting- Closure and commitment- Feedback loop13
  • Tips for Success 14High performing organization have developed techniques for setting clear guidelineson what Decision they are trying to make Start any discussion on decisions with a reminder of what you‟retrying to decide Start every meeting with a single statement “ The purpose of this meetingis to inform you about X, to discuss Y and to decide on Z Frame the decision in reverse Instead of asking is it profitable to bid at a particular price, Ask is it non-profitable to bid at a particular price Make the decision explicit – and check to see if you are missing anyparts of the decision
  • RAPID ®, a practical tool fordecision rolesInput AgreeRecommendPerformDecideMake finaldecision:"Commit theorganization toaction”Recommend adecision or anactionFormally agree on arecommendation;must be consulted,should not be ignoredBe accountablefor performing adecision oncemadeProvide input to arecommendation;must be consulted,may be ignored15The acronym RAPID– reflect the primaryroles in any decision Ensure the only one person has the D Limit the A roles & ensure that sign-offsis on recommendation, not on thedecision Let key players know their exact goals Don‟t underestimate the – perform role When necessary be explicit about whowill decide RAPID roles
  • The how – elements of a best-practice decision processStructured decisionapproach• Conscious approach to decision: set criteria, consider relevant facts,develop alternatives and makes a clear decision weighing all of these1Clear Steps &sequence• Logical steps and sequence for how decision roles and process will workin practice• Clear guidelines on how and when to escalate and when not to2Meeting &Committee• Key meetings required for the decision specified, with purpose andparticipants clarified up front• Appropriate committee reviews3Closure &Commitment• Final decision communicated to key parties• Resources allocated (people & money)• Execution plan in place(actions, accountabilities, milestones)4Feedback loops• On going review of execution progress to drive fast corrective action orreplicate successes516
  • 17Use a structured decision approachAgree on a criteriaGather all relevant factsAlways ensure more than one alternativeEstablish guidelines for steps & sequence (includingescalation)Defines path for escalationNever shoot the messengerBe aware of maverick escalationsDesign meeting around specific decisionsDistribute meeting material in advanceMark them as•Information purpose only•For discussion & debate•Decision & actionAllocate required resourcesRebalance team to assist in executionLet people clearly know what decision is madeClose and commitAct quickly on feedbackDevise feedback loopsReplicate successesEstablish feedback loopsTheHow–elementsofabestpracticeprocess
  • Tips for Success 18 Separate the decision from the discussion of choices First consider relevant facts and proposed alternatives, Discuss whetherfacts are sufficient and all the right alternative are on the table In separate session choose amongst the alternatives and planmobilization for execution Follow the rule of Seven for meetings Every person added to decision making group over seven reducesdecision effectiveness by 10% Track the timing as well as the level of bottleneck resources toensure effective executionTop performing companies typically follow these practices:
  • Decision centered versus traditionalapproach to organizationTraditional approach Decision – centered approachHARDIs our structure aligned with ourstrategy?Does our structure support the decision most critical to creating value?Who should report to whom? What are the specific roles and accountabilities for our critical decisions?Are our core business processeseffective and efficient?Are our processes geared to produce effective, timely decisions and action?So our information systems support ourbusiness objectives?Do the people in key decision roles have the information they need when and howthey need it ?Is our compensation competitive withpeers?Do our performance objective and incentive focus people making the rightdecisions for the business?SOFTDo we have clear and compellingmission and vision?Do people throughout our organization have the context they need to make andexecute the decision they face?Is our management style sufficientlyinclusive?Are our people clear on our preferred decision style (directive, participative,democratic, consensus)Do we have an effective leadershipteam?Do our leaders at all levels consistently demonstrate effective decision behaviors?Do we have a high performance(sometime "customer-centric”)culture?Does our culture reinforce prompt, effective decision making and actionthroughout the organization?Are we winning the war for talent? Do we put our best people in the jobs where they can have the biggest impact ondecisions?19
  • Embed decision capability Building the foundation of effective decision Make decision effectiveness a priority Align the top team and engage influential leaders early Build commitment through hands- on experience Ask the leader to co-create the plan Creating and sustaining momentum Apply good decision disciplines to improve decision effectiveness itself Celebrate decision and execution success – and nurture grass root pull20
  • Embed decision capability Embed decision behaviors and capability Build new capability and skills Develop a repeatable model that can be applied throughout the business Use a “train a trainer” approach – and tailor training the training to the audience Help people learn through experience Share best practices Walk the talk Measure the Impact21
  • Embed decision capability Pitfalls to avoid Don‟t start anything you‟re not prepared to finish Apply the tools to the difficult decisions, not just the easy ones Don‟t fudge the people issues Cut bureaucracy – don‟t„ add to it22
  • Video from the creators 23Step 01Step 02Step 03Step 04Step 05The authors