Decision	
  Making	
  
Is	
  the	
  foundation	
  of	
  
Performance	
  
	
   	
   CEO	
  POV	
  
	
  
	
  
	
  
	
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   Decision	
  Making	
  
Is	
  the	
  foundation	
  of	
  
Performance	
  
	
   	
   CEO	
  POV	
  
	
  
POOR	
  DECI...
 
	
   Decision	
  Making	
  
Is	
  the	
  foundation	
  of	
  
Performance	
  
	
   	
   White	
  Paper	
  
	
  
	
   	
 ...
 
	
   Decision	
  Making	
  
Is	
  the	
  foundation	
  of	
  
Performance	
  
	
   	
   White	
  Paper	
  
	
  
	
   	
 ...
 
	
   Decision	
  Making	
  
Is	
  the	
  foundation	
  of	
  
Performance	
  
	
   	
   White	
  Paper	
  
	
  
	
   	
 ...
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Ceo pov q4 a2 poor decisions destroy a company's ablity to drive performance

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Understand why decision making is the discipline for high performance

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Ceo pov q4 a2 poor decisions destroy a company's ablity to drive performance

  1. 1.     Decision  Making   Is  the  foundation  of   Performance       CEO  POV                                                           Poor Decisions Destroy A Company’s Ability to Drive Performance Five Steps to Ensure your Organization Improves its Decision Making                           CEO  POINT  OF  VIEW  QUARTERLY  q3   Thinking  Dimensions  Global       Insights  and  Actions  for  Executives     CEO  P.O.V.  
  2. 2.     Decision  Making   Is  the  foundation  of   Performance       CEO  POV     POOR  DECISIONS  DESTROY  A   COMPANY’S  ABLITY  TO  DRIVE   PERFORMANCE:     F I V E   S T E P S   T O   E N S U R E   Y O U R   O R G A N I Z A T I O N   I M P R O V E S   I T S   D E C I S I O N   M A K I N G   POV  of  article:  CEO’s  and  Senior  Leadership  must  remove  the  barriers   that   lead   to   poor   decisions   and   invest   in   decision   making   as   a   fundamental  management  competency  that  drives  strategic  value  and   sustainability.       Every  day,  in  every  country,  in  every  company,  people  go  to  work  to  do   their  part  in  the  procurement  of  goods  and  services  for  customers.  The   common   activity   that   fuels   business   progress   and   each   of   these   people’s  performance  is  decision  making.    Decisions  exist  in  all  shapes   and  sizes  -­‐  strategic,  operational,  customer-­‐related,  deadline  driven,  IT   based,   globally   complex,   financially   large   or   small.   Whatever   the   circumstance,  they  all  share  the  same  starting  point  –  a  choice  needs   to   be   made   because   something   has   changed   or   needs   to   change.   Whether  employees  are  aware  of  their  decision  making  process  or  are   not  conscious  of  the  thinking  patterns  they  use  will  always  be  up  for   discussion   –   however,   what   isn’t   debatable   is   that   higher   quality   decisions  drive  better  performance  in  organizations.       Experience   has   shown   there   are   5   main   causes   of   inferior   decision   making:   1. Poor  quality  data  or  waiting  for  the  perfect  data  to  exist     2. No  common  decision  making  process  or  set  of  steps     3. Not  making  the  thinking  behind  decisions  visible  to  the  people   involved   4. Inability  to  sort  relevant  from  irrelevant  data     5. Explicit  or  implicit  bias  to  the  data  itself  or  process  being  used     I.  Barriers  that  Lead  to  Inferior  Decision  Making       Barriers  to   Effective   Decision   Making     1.  Data  quality     2.  No  common   process     3.  No  visibility     4.  Inability  to             sort  relevant                 from  irrelevant   data        5.  Bias          
  3. 3.     Decision  Making   Is  the  foundation  of   Performance       White  Paper          Thinking  Dimensions  Global   www.thinkingdimensionsglobal.com   Page  |  3       Thinking   Dimensions   defines   decision   making   as   a   series   actions   implemented  over  time  that  best  satisfy  the  issue  to  be  resolved.    The   four   steps   that   every   decision   maker   works   through   –   in   a   rational,   intuitive  or  creative  fashion  (mostly  some  combination)–  are  the  same.           1. Identify  and  State  the  Issue  to  be  Decided   2. Outline  Criteria  that  a  Solution  can  be  Evaluated  Against   3. Generate  and  Test  Solutions   4. Select  the  Solution  and  Implement  Actions.           These   steps   –   powered   by   questions   that   tell   you   the   data   that   is   required  to  resolve  the  situation.    This  road  map  of  questions  comes  in   four  variations  which  address  the  four  types  issues  that  all  situation  s   can  be  deconstructed  into   • PAST-­‐  Root  Cause  Analysis  –WHY?   • PRESENT-­‐  Decision  Analysis    -­‐  WHAT  NOW?   • PRESENT  –  Situation  Appraisal  –  What  First?   • FUTURE-­‐  Risk  Analysis  –  What  IF.       To  understand  that  the  resolution  of  any  problem  or  issue  can  be  done   using  these  four  patterns  and  corresponding  tools  empowers  the  user   to   resolve   the   situation   more   effectively   (i.e.   time,   money,   effort),   involve  the  right  people  and  ultimately  be  more  productive.           The$Four$Thinking$Pa/erns$Based$on$Decision$Making$ Past$ Present$ Future$ Standard'' Devia,on' 1.'Appraise'/'Clarify'' 2.'Root'Cause' 3.Choice' 4.'Risk' Decision'Making'is'the'founda,on'of'Performance' Note'–'Companies'must'get'into'the'prac,ce'of'searching'for'cause'in'both'posi,ve'and' nega,ve'devia,ons.'The'illustra,on'above'depicts'only'the'nega,ve'devia,on'scenario' why?' What'first?' What' 'now?' What'if?' II.  Decision  Making  Defined  and  Four  Variations  Described           The  basic   thinking  pattern   of  decision-­‐ making  spawns   four  variations   that  allow   managers  to   more  effectively   resolve  issues     WHY   WHAT  NOW   WHAT  FIRST   WHAT  IF      
  4. 4.     Decision  Making   Is  the  foundation  of   Performance       White  Paper          Thinking  Dimensions  Global   www.thinkingdimensionsglobal.com   Page  |  4     Power  lies  with  executives  who  recognize  this  truism  and  can  engage   and   align   their   organization   with   better   decision-­‐making   practices.   Developing   decision   making   competencies   is   simple,   effective   and   smartly   leverages   the   basic   reason   why   people   are   hired   in   the   first   place   –   to   drive   performance   and   contribute   with   the   skill   sets,   experience  and  judgment  for  whichever  level  they  work  at.       The  solutions  to  resolve  the  barriers  to  effective  decision-­‐making  are   straightforward  but  require  consistency  in  expectations  and  effort  set   by  senior  leaders.     1. Acknowledge   that   Decision   Making   is   the   foundation   of   performance  –  and  its  something  to  invest  in.     2. Select   a   common   process   for   your   organization,   region,   department  or  whatever  area  you  have  control  over.       3. Employ   a   common   decision   making   process   that   is   question-­‐ driven  as  it  will  sort  relevant  from  irrelevant  data  faster.     4. Make   people   make   the   process   visible   –   on   a   whiteboard,   napkin,  flipchart  or  piece  of  paper  –  it  expose  biases,  data  gaps   and  forces  you  to  examine  the  real  intent  of  the  issue.     5. Instill  that  engaging  the  right  people,  with  the  right  data  will   solve  the  issue  every  time  and  the  benefits  of  speed,  quality,   collaboration  and  performance  will  be  the  result  as  people  are   aligned  to  the  same  process.     As   organization’s   compete   in   a   global   arena,   where   speed,   flexibility   and   relentless   business   pressures   exist   –   the   most   effective     organizations   excel   at   decision   making   and   those   who   are   under   performing  must  be  reminded  of  the  basics  –  a  return  to  building  and   developing  decision  making  as  a  critical  competency.     Decision-­‐making  is  the  foundation  of  performance  and  will  continue  to   be  the  differentiator  in  top  performing  organizations.             III.  Five  Steps  to  Improve  Decision  Making  in  Your  Organization       5  Steps  to   Improve  Decision   Making     1.  Emphasize   Decision  Making   is  Foundational   to  performance   2.  Select  a   common  process   3.  The  Process   Must  be   Question  Driven   4.  Make  Thinking   Visible   5.  Involve  the   right  people          
  5. 5.     Decision  Making   Is  the  foundation  of   Performance       White  Paper          Thinking  Dimensions  Global   www.thinkingdimensionsglobal.com   Page  |  5       This  article  was  authored  by  Tim  Lewko,  Managing  Partner  of  the  Global  Strategy  Practice  and  Executive  Director  of   Thinking  Dimensions.   Thinking  Dimensions  is  a  global  consultancy  that  assists  clients  in  resolving  strategic  and  operational  issues.   We  bring  proven  decision  making  methodologies  to  assist  clients  battling  growth,  cost,  and  security   challenges.  Our  process-­‐  driven  KEPNERandFOURIE™  thinking  technologies  guide  the  development  of  effective   corporate  strategies,  operational  improvements,  and  Information  Technology  Root  Cause  Analysis  (ITRCA)   solutions.  All  of  our  client  solutions  recognize  decision-­‐making  is  the  foundation  of  performance.   Thinking   Dimensions   is   led   by   Drs.   Charles   Kepner   and   Mat-­‐thys   Fourie   who   have   over   60   years   of   combined   thought  leadership  in  decision  making  and  process  consulting.  Today,  Thinking  Dimensions  Partners  and  Associates   in   over   20   countries   throughout   the   ASIA-­‐PACIFIC,   EMEA   and   AMERICAS   regions   deliver   expedited   results   on   pressing  business  issues.          

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