Decision Making


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Decision Making

  1. 1. Decision Making by Roger Claessens, Prof. UBI Organising your DECISION MAKING « CHECK LIST » 1
  2. 2. From: Roger Jean Claessens, international lecturer & consultant for the financial services industry. • • • • Professor at UBI (United Business Institutes), Brussels Expert lecturer for FEBELFIN (Federation of banks & insurance in Belgium) Expert lecturer for the EIB / EIF in Luxembourg Expert lecturer for the Bank Association in Belgrade, Serbia Author of : • • • • • • “Corporate culture in Banking”, 2011, Serbian Bank Association (SBA) & AuthorHouse, UK “What is a bank?”, 2009, Promoculture & AuthorHouse, UK “A brief introduction to accounting”, 2008, Unibook, Belgium “Marketing in financial services”, 2007, SBA “Branch Management”, with P. Wiertz,2006, Promoculture & SBA “Ethics, corporate values and prevention of money laundering”, 2006, SBA 2
  3. 3. Could your neighbour introduce YOU? 3
  4. 4. “45 % of all our decisions are wrong” WHY? Roger Claessens, Prof. UBI 4
  5. 5. You may remember the… 5
  6. 6. 5 Steps 1. Define 2. Measure 3. Analyse 4. Innovate or Improve DMAIC 5. Control
  7. 7. 7 Steps 1 Define 2 Causes of problem 3 Possible solutions 4 Decide 5 Responsibilities 6 Evaluate results 7 Test 7
  8. 8. 3 R’s Reflect Respond Revise 8
  9. 9. Maths   im   im  i m 2 m 9
  10. 10. We have TOOLS, don’t we? 10
  11. 11. Why such a high %? 11
  12. 12. INTRODUCTION 12
  13. 13. PROGRAM Workshop topics: 1. Creating consensus 2. Accountability 3. Leadership 4. Structured thinking 5. Intuitive thinking 6. Communication 7. Implementation 8. Change management 9. Conflict & performance 10. Winning 13
  15. 15. 15
  16. 16. Getting out • You are in the Arizona desert in the hottest time of the year. Because of a fire, the plane had to land and most of the contents have been destroyed but fortunately none of the three passengers and the pilot are hurt. You know that you are about 75 miles from the nearest town. Fortunately you have some pieces of equipment and items left that you could use for your survival. • The decision to make is: either to stay put and wait for help or move and walk the 75 miles to the nearest town. • Whatever the decision it needs to be taken unanimously! 16
  17. 17. Getting out • Below is list of available items, you should list them in order of importance to your survival, one being the most important, and decide what items to take with you in case you decide to move. You may also take the decision to stay and wait for potential help but should still list the items in order of value to your survival: 1. 2. 3. 4. 5. 6. 7. Compass Small transistor radio Shaving mirror Snake repellent 5-liter of water for the four of you 4 square meter of opaque plastic Mosquito netting 8. 9. 10. 11. 12. 13. 14. 15. 1 case of rations Maps of the desert Cushions 5 litre of an oil/gas mixture 1 bottle of rum Two boxes of chocolate 5 meter of ropes One boomerang 17
  18. 18. Decision making System 1 Intuition Stable environment Frequent exposure Experience System 2 Analysis Result of what you know Analytical part of the process Remembering 18
  19. 19. Decision Making • Overestimation of intuition and underestimation of what we need for the analytical part of the decision making process will induce: IRRATIONAL PERSEVERANCE These slides are based on: “Thinking fast and slow” by Daniel Kahneman 19
  20. 20. Decision Making • System 1 operates automatically and quickly with little or no effort and no sense of voluntary control. It includes the innate skills that we share with other animals. • System 2 allocates attention to the effortful mental activities that demand it, including complex computations. It requires attention and effort. • When system 1 runs into difficulty it calls on System 2 to support more detailed and specific processing. 20
  21. 21. Decision Making • It is natural for System 1 to generate overconfident judgements, because confidence is determined by the coherence of the best story you can tell from the evidence at hand. • Therefore your intuitions will deliver predictions that are too extreme and you will be inclined to put far too much faith in them 21
  22. 22. Decision Making self-control • System 2 is requires , which requires attention and effort. • Effort and will or self-control is tiring and often unpleasant! • Following our intuitions is more natural and somehow more pleasant than acting against them. 22
  23. 23. Decision Making • When people believe a conclusion is true, they are also very likely to believe the arguments that appear to support it, even when these arguments are unsound • The extend of deliberate checking and search is a characteristic of System 2 as System 1 provides impressions that often turn into beliefs and is the source of impulses that often become your actions. 23
  24. 24. Decision Making • It often fails by lack of motivation • High intelligence does not make people immune to biases 24
  25. 25. Decision Making • The sense making machinery of System 1 makes us see the world as more tidy, simple, predictable, and coherent that it really is. • The illusion that one has understood the past feeds the further illusion that one can predict and control the future. • These illusions are comforting. They reduce the anxiety! • Various illusions: of skills, educated guesses, the ignorance of one’s own ignorance, forecasting ability, of validity, expertise 25
  26. 26. Decision Making • Expertise depends essentially on the quality and speed of feedback, as well as on sufficient opportunity to practice. • Evaluating expertise means considering whether there was an adequate opportunity to learn even in a regular environment. 26
  27. 27. Decision Making • Intuition is nothing more and nothing less Recognition • We are often wrong, and an objective observer is more likely to detect our errors than we are • Luck plays a large role in every story of success! 27
  28. 28. Decision Making • When faced with a difficult question, we often answer an easier one instead, usually without noticing the Substitution • There are several ways human choices deviate from the rules of Rationality 28
  29. 29. Decision Making • A reliable way to make people believe in falsehoods is frequent repetition because familiarity is not easily distinguished from truth. • Authoritarian and marketers have always know that fact! • Very little repetition is needed for a new experience to feel normal. 29
  30. 30. Decision Making • We tend to exaggerate our ability to forecast the future, which fosters optimistic overconfidence. • Optimism is a state of mind, often inherited • More often optimism leads to underestimate the odds they face and do not invest sufficient effort to find out what the odds are. • “ The evidence suggests that optimism is widespread, stubborn and costly! 30
  31. 31. Decision Making • We focus on what we know and neglect what we do not know, which makes us overly confident in our beliefs. • Both in explaining the past and prediction the future, we focus on the causal role and skill and neglect the role of luck. • We are therefore prone to the an illusion of control. 31
  32. 32. Decision Making • Whenever you form an evaluation of complex object, you assign weights to its characteristics. • The weighting occurs whether or not you are aware of it; it is an operation of system 1 • The weights are certainly correlated with the probabilities of the outcomes. • The more probable an outcome, the more weight it should have 32
  33. 33. Decision Making “ An inability to be guided by a “healthy fear” of bad consequences is a disastrous flaw ! “When you specify a possible event in greater detail you can only lower its probability” 33
  34. 34. Decision Making - CONCLUSION • System 1 does the fast thinking & the effortful and slower system 2 - which does the slow thinking – monitors system 1 and maintains control as best as it can within its limited resources • However, system 2 is not a paragon of rationality. Its ability are limited and so is the knowledge to which it has access. 34
  35. 35. Creating consensus 1. Clearly frame the issue to be decided & determine the result you desire to achieve (during the meeting). 2. Clearly explain the process of decision making which will be used. 3. Clearly explain the role of the facilitator. 4. Use a "straw polling" procedure to see how the group is leaning on an issue and to facilitate the decision making process. 35
  36. 36. Creating consensus 5. The standard for consensus is that the whole group must agree with the decision. Each individual member must agree that the decision is what he or she wants. Do not allow the standard to drop to "I can live with it." or "I'll go along to get this meeting over with." Encourage participants to stand their ground. 6. 6. Expect dissent and disagreement during the process and view this as a positive step towards a high quality decision. Decisions made without dissent are often of poor quality. 7. Encourage participants to be direct and concise in all communications. 36
  37. 37. Creating consensus 8. Encourage everyone to actively listen to each person in the group and to seek to understand other points of view. Look for the possible merit of each other's opinions. 9. Encourage everyone to approach the meeting and the decision in a rational manner rather than an emotional one. 10. If the meeting gets off track or people become focuses on their own comfort or emotion, re-focus the group on the desired result 37
  38. 38.  Good decisions require consensus  Good decisions require a structured approach and methodology  Good decisions should “in general” be a healthy combination of system 1 and 2 38
  39. 39. CASE 2: ENRON 39
  40. 40. 40
  42. 42. Discussion • What were the CONSEQUENCES of the wrong decisions? • What would have been CORRECT decisions? 42
  43. 43. WHAT WENT WRONG?  Senior management unloading stock?  Substantial contributions to political parties  Shredded documents  Manipulating market risk  Unusual high profits 43
  44. 44. WHAT WENT WRONG?  Feeling of something unusual going on  Falsified bank records  Manipulation of earnings  Trading beyond stated limits  Unread reports  Inappropriate use of legal loopholes 44
  45. 45. WHAT WENT WRONG?  Booking potential profits at the moment of the conclusion of a contract  Hypothetical future value accounting  Performance evaluation system taken to the extreme 45
  46. 46. WHAT WENT WRONG?  Profits without ethics  Black box accounting  « You have to do whatever you have to do t stay there! »  Stock manipulation  Abusive public relations 46
  47. 47. WHAT WENT WRONG?  Convincing anyone else that they are smarter  Unusual large profits & risk taking  Abuse of deregulation  Many un-answered questions 47
  48. 48. WHAT WENT WRONG?  Pressure to do business at any price or abuse  Corruption  Perception = the reality  Plenty of warning signs without control  Conflict of interest – special purpose vehicles 48
  49. 49. WHAT WENT WRONG?  Ambition versus modesty  Demonstrated dangers of structured finance  Lack of independance  Using company stock to garantee own transactions  GREED  Sale – repurchase transactions (warehousing) 49
  50. 50. WHAT WENT WRONG?  How is it that they reach the numbers?  Traders run the company  Absence of whistle blowing procedures  DEADLY MISTAKE of ARTHUR ANDERSON = Death of the company itself 50
  51. 51. • « IT WAS ALL TO EASY… » 51
  52. 52. Discussion What have you learned from the ENRON case? 52
  53. 53. Discussion What would be appropriate tools to assure accountability? 53
  54. 54. 1. 2. 3. 4. 5. 6. 7. 8. Management by objectives Code of conduct Performance evaluation Mission statements Internal and external communication Determine key values Determine behavioural norms Requires leadership 54
  55. 55.  Good decisions have taken consequences into account  Good decisions entail clearly defined responsibilities  Good decisions require the right corporate culture 55
  56. 56. Accountability is the concept in ethics and governance with several meanings. It is often used synonymously with such concepts as responsibility, answerability, blameworthiness, liability, and other terms associated with the expectation of account-giving. (Source: Wikipedia) 56
  57. 57. Corporate governance Corporate governance is about: Assuring a correct management and control of a company, based on laws and rules and « behaviour » of management and staff! It implies duties such as: • An effective and efficient control • Solvency • Discipline of all involved 57
  58. 58. Corporate governance The ten (10) principles of corporate governance 1. Required qualifications of the principal shareholders 2. Adequate management structure 3. Clear guidelines for powers and responsibilities 4. Definition of individual tasks among management 5. Independence of the control functions 6. Required qualities of the managers 7. Financial reward of the managers 8. Strategic objectives, corporate values and avoidance of conflict of interest 9. Corporate structures and products 10. Publicity in publications 58
  59. 59. Corporate governance Governance Structure & Operations Action Control & Audit 59
  60. 60. Leadership 60
  61. 61. « Every day in life, there is a new question. That is what keeps us going. » 61
  62. 62. According to Jack Welch What leaders do 1. They relentlessly upgrade their team 2. They live and breathe their vision 3. They exude positive energy and optimism 4. They establish trust and transparency 5. They have to courage to take unpopular decisions 6. They probe and push with a curiosity 7. They set the example 8. They celebrate 62
  63. 63. Motivation In the final analysis a variety of SKILLS will contribute as much as your formal academic training to 63 your and the organisation’s SUCCESS
  64. 64. Assessing Your Ability No matter what life throws at you in a day, always keep FOCUSED on your goals. « Does is matter to my goal?» If not, then cross it off! 64
  65. 65.  Good decisions require leadership  Good decisions require the knowledge of the broader picture 65
  66. 66. 1. 2. 3. 4. 5. 6. 7. Strict adherence to (behavioural) norms Internal and external communication Clearly spelled out procedures Efficient and effective controls Efficient reporting Hands on management The qualities of good leaders 66
  67. 67. CASE 3: SUB PRIME 67
  68. 68. 68
  69. 69. Discussion • What were the CONSEQUENCES of the wrong decisions? • What would have been CORRECT decisions? 69
  70. 70. The subprime crisis Discussion In your view: (1)What could or should have been done? (2)Is regulation the answer? (3)Will it re-occur? 70 70
  71. 71. WHAT are the characteristics of a good credit? The five C’s of Credit assessment – Character - the willingness of the borrower to repay – Capacity - the ability to repay the debt from cash flow – Collateral - the security backing the loan – Capital - the strength of the borrower’s balance-sheet – Conditions - the sensitivity of the project to outside factors such as economic cycles and competition 71
  72. 72. WHAT WENT WRONG?  So superficial  No “hands-on” management  Control & audit  Reporting  No understanding 72
  73. 73. WHAT WENT WRONG?  Feeling of something unusual going on  Unread reports  Inappropriate use of legal loopholes  Profits without ethics  Abusive public relations  Black box accounting 73
  74. 74. WHAT WENT WRONG?  Convincing anyone else that they are smarter  Unusual large profits & risk taking  Many un-answered questions  Pressure to do business at any price or abuse  Perception = the reality  No or little values 74
  75. 75. WHAT WENT WRONG?  Lack of structured thinking 1. Simplification to allow for best & worse case scenario 2. Visualisation to understand the issues 3. Assuring the understanding of the key issues 4. Right presentation to allow for an educated decision making 5. Associations are a strong helping hand 75
  76. 76. 76
  77. 77. CASE 4: MARGIN CALL 77
  78. 78. 78
  79. 79.  Good decisions require skills  Good decisions require anticipation  Good decisions require structured thinking 79
  80. 80. Kick start your brain. New ideas come from watching something, talking to people, experimenting, asking questions, getting out of the office - Steve Jobs Steve Wheeler, University of Plymouth, 2011 Think Different
  81. 81. 81
  82. 82. How does brainstorming work? 82
  83. 83. How does brainstorming work? 83
  84. 84. How does brainstorming work? 84
  85. 85. 85
  86. 86. Management by questions 86
  87. 87. How does brainstorming work? This PC is the result of a way of thinking: Better Faster Cheaper Smaller Simpler 87
  88. 88. Decisions and Communication 88
  89. 89. Communication « Communications are an essential part of what you have to offer to the stakeholders » (Michael Dell) 89
  90. 90. Communication • « Corporate communication is a management function that offers a framework for the effective coordination of all internal and external communication with the overall purpose of establishing and maintaining a favourable reputation with stakeholders groups upon which the organisation is dependent. » (J. Cornelissen) 90
  91. 91. Communication Communication requires • An emphasis on dialogue and interactivity • Focus on stakeholders’ needs • Involvement of all functions and people • A focus on branding (excellence) • A focus on how well staff members are regarded • A focus on the context • The willingness to be a key driver • Branding as a key aim 91
  92. 92. Communication The goal of communication • Is geared towards establishing a favourable corporate image and reputation with all the stakeholders, so that they act in a way that is conductive to the success of the organisation! • It is the spectre of damaged reputation that lies behind the urgency of doing and saying the right things, now! 92
  94. 94. Workshop What competencies and skills does a professional communicator need? 94
  95. 95. Communication • Promises arise from spoken and written communication •It is a matter of gaining a position in the minds of the stakeholders 95
  96. 96. Communication Remember the basic structure of any message SITUATION PROBLEM IMPLICIT INFORMATION CONCLUSION EXPLICIT 96
  97. 97. Communication There are three concepts that form the theoretical foundation of corporate communication: 1. The stakeholders 2. The corporate identity 3. The reputation • Organisations have realised that now more than ever they need to listen to and communicate with a large range of stakeholders 97
  98. 98. Communication- stakeholders investors political groups governments suppliers organisation trade associations customers communities employees 98 Source: Corporate communication, J. Cornelissen
  99. 99. Communication Stakeholders • A stakeholder is any group or individual who can affect or is affected by the achievement of the organisation’s purpose and objectives • The interest can be of an economic or of moral nature. • Example of community stakeholders: consumers, regulators, government,media, l ocal communities,pressure groups 99
  100. 100. Communication stakeholder awareness understanding involvement commitment tactics newsletters reports memos free adds discussions meetings advertising educational campaigns consultation debate collective problem solving type of strategy informational persuasive dialogue dialogue 100 Source: Corporate communication, J. Cornelissen
  101. 101. Communication A communication strategy should be based upon an assessment of the GAP between how the issue is currently seen and how YOU want it to be seen. 101
  102. 102. Communication The challenge is to be brief, structured, focused 102
  103. 103. Communication Communication requires an interface between what is being said and what is being done 103
  104. 104. 104
  105. 105. 105
  106. 106. • Internet – – – – Website Static content 1 webmaster Yearly content update • E-mail – One to one – One to many 106 • Forum - Blog • Wiki – Dynamic content – Community – Continuous update • Social networks – Collaborative content – Many to many communication
  107. 107. Twitter Blog Website LinkedIn 107 Facebook
  108. 108. “The rise of social media makes it more important than ever to get the branding fundamentals right” “You do not need to rewrite the marketing playbook but to exploit social media opportunities while keeping an UNWAVERING FOCUS on meeting the customers’ needs” HBR Dec, 2010 108
  110. 110. PROBLEM SOLVING 110
  111. 111. Implementation 1. Define 2. Measure 3. Analyse 4. Innovate or Improve DMAIC 5. Control 111
  112. 112. Define HR & mgt leadership planning customer results market processes Improving the drivers impacts the results 112
  113. 113. Define Performance indicators How do we know we are getting closer? Where are we? Assessment Where are we going? Planning How do we get there? Processes 113
  114. 114. Define HR & mgt leadership planning customer market improved motivation improved service Results processes Improving the drivers impacts the results 114
  115. 115. Define What is a process? INPUT OUTPUT •A process is a set of linked or related activities transforming inputs •The quality of the process determines the quality of the output 115
  116. 116. Define • A project needs a project leader • Determine the role of the key players • Define the boundaries of the project • Help clarifying the objectives • Define which information is needed • Determine his role (desire to have power over a team is a no-win situation!) 116
  117. 117. Define A project leader’s check list: 1. The problem 2. The goal 3. Role expectations 4. People involved 5. Restrictions 6. Reporting 7. Next stage 117
  118. 118. Define A project will have greater success if: • The problem is related to a key business issue • The problem is linked to a clearly defined process • The internal and external beneficiaries are clearly identified • The improvements can be demonstrated • The improvements contribute to the overall performance • There is sufficient organisational support • The results are visible with a pay-back period 118
  119. 119. Define Example of a potential result analysis Expected improvement Benefit of that Expected improvement busines impact Reduce errors in processing Less time spend fixing errors, speed up work flow 5 % increase in monthly revenues 119
  120. 120. Define A project leader’s chart: How to DMAIC & define the milestones & create a milestone plan What is a milestone? Milestones are: • Measurement points • Indicate a logical order • Directed towards the goal • Allow for communication Project start Finish 120
  121. 121. Define Questions to consider Project What issues are you addressing? What problems do customers have with the process? Expected business results What will be the business impact of the improving process? How will team members benefit from succesful completion of this project? Focus What information will be collected? What areas are inside or outside the scope of the team? On what specific parts of the process will the team focus? Deliverables What must the team deliver to be succesful? Measures What will be the primary measure of success How will measures be tracked? How much improvement is needed and when? 121
  122. 122. Measure Data collection Collecting and analyzing data takes time and resources. It is important to ensure sufficient data, in quantity and type, is collected right from the start to prevent having to collect more data down the road. 122
  123. 123. Measure Data collection  However, do not get overwhelmed by to much data. Make sure they can still be reasonably analyzed and understood, taking into account the time and methods available.  Part of the challenge is to decide just how much data will be sufficient (and representative) to reach a perfect balance. 123
  124. 124. Analyse Tools for analysis - a time plot is a graph of data ordered in time 140 130 Number of days 120 110 100 90 80 70 0 10 20 30 124
  125. 125. Improve Adjust Plan Check Do 125
  126. 126. Control Without measures, managers have no basis for : • Specifically communicating performance expectations to subordinates; • Knowing what is going on in their organization; • Deploying their strategy down to the lowest level; • Effectively making and supporting decisions regarding resources, plans, policies, schedules and structures; • Providing feedback that compares performance to a target. 126
  127. 127.  Good decisions require clear communication  Good decisions require a systematic implementation & performance measurement  Good decisions require a disciplined approach 127
  128. 128. CHANGE MANAGEMENT 128
  129. 129. Changing attitudes Discussion What are obstacles to change? 129
  130. 130. Changing attitudes Changing attitudes is a challenge confirmation, justification rational opinions, principles decisions motivation 80% of the activities of people personality structure 130
  131. 131. Changing attitudes The wrong attitudes • Standards are made to be followed not to be improved. • Cowboy individualism • Fear of the unknown • What is in it for me only? • « Been there, done that… » 131
  132. 132. Why Do People Resist Change? • The phrase, “overcoming resistance,” indicates an adversarial relationship … since resistance is an emotional process, the key is understanding it: – People resist change because the change is: • Perceived by them to be negative, and • They do not want to deal with the reasons for it – Resistance is a way of expressing feelings of concern about making a change – These concerns tend to be: • Concerns over loss of control • Concerns over vulnerability – Your task is to help the person who is resisting change to express these concerns directly 132
  133. 133. Why Resistance Occurs . . . • Resistance can occur because people fear: – Loss of credibility or reputation – Lack of career or financial advancement – Possible damage to relationships with boss – Loss of employment Indirect Expressions of Concerns/ Visible Resistance Real/ Underlying Concerns – Interpersonal rejection – Change in job role – Embarrassment/loss of self-esteem – Job transfer or demotion Your task is to encourage the full expression of the real/underlying concerns. 133
  134. 134. Three Steps to Dealing with Resistance • Step 1: Identify the form the resistance is taking: – – – – – Trust what you see more than what you hear Pick up cues Listen to yourself — use your own feelings as a barometer • Uneasy, bored, irritated Listen for repetition/telltale phrases Make two good-faith responses • Step 2: Acknowledge, name the resistance: – – – – Tell person your perception of the resistance Do it in a “win/win” manner; neutral, non-aggressive - “What I think I hear you saying is . . .” Tell the person how the resistance is making you feel Be specific, clear, authentic • Step 3: Be quiet, listen, let the person respond: – – – Get him/her talking Encourage full expression of the concerns Gradually uncover underlying resistance/issue - be aware of other forms of resistance surfacing 134
  135. 135. Tactics to Minimise Resistance • Explain why • • • Identify the benefits Invite and answer questions Provide appropriate training in new skills and coaching in new values and behaviors • Encourage self-management • Give more feedback than usual to ensure people always know where they stand • Allow for resistance. Help people let go of the “old” • Measure results, step back and take a look at what is going on. Keep asking “Is the change working the way we want it to?” • Encourage people to think and act creatively • Look for any “opportunity” created by the change • Allow for withdrawal and return of 135 people who are temporarily resistant • Solicit participation, and, if possible, early involvement • (“first-draft/strawmodel” reviews, membership in planning/implementation teams, etc.) • Avoid surprises • Set standards and clear targets • • • Inform/involve informal leaders Recognize and reward efforts Over communicate
  136. 136. Changing attitudes The right attitudes • Excellent people and companies focus primarily on beating themselves • How can we improve ourselves to do better tomorrow than we did today? •Where can we improve the end to end process? •You are the only one who can change YOU = M.B.O. MANAGEMENT BY OBJECTIVES ! 136
  137. 137. Changing attitudes Changing attitudes Your know-how Appreciation Professional Trust Satisfaction Status & Income Every member of staff is at the beginning of a personal value chain 137
  138. 138. Changing attitudes • Transforming corporate performance by measuring and managing the drivers of business success •80 % of change initiatives fail due to human factors •An organisation moves slower than the individuals who make up the organisation! 138
  139. 139. What are the qualities of an evaluation process? MBO should be a win-win situation! 139
  140. 140. Changing attitudes The qualities of an evaluation process 1. Importance of the process 2. Partnership 3. Respect 4. Constructive 5. Objective 6. Specific MBO should be a win-win situation! 140
  141. 141. Changing attitudes How can you be sure the system works? • By being fair, by rewarding those who really want to move forward and by penalising those who do not. It is a system whereby you either move upwards or outwards but where there is no room for mediocrity. • Average performance pushes overall performance downwards. • You want to move upwards, not downwards. 141
  142. 142. Changing attitudes You want to move upwards, not downwards.142
  143. 143. Changing attitudes • The ultimate goal is to be seen to be better than the others or at least different than the others! • It is the responsibility of everybody, irrespective of that person’s position in the organisation. 143
  144. 144. Decisions…, d on’t forget the MYTHS 144
  145. 145. • GOOD DECISIONS LEAD TO 145
  146. 146. Final points • Decision making is not an exact science, • Behind data there are men and women! • Thinking is not a tidy process but it should be done with a sense of order • Remember that solutions are the seed of new problems 146
  147. 147. Final points • Bad decisions are unforced errors but if you want to win their number should be limited • It is always worthwhile to listen to people • A problem is a solution in disguise • Brainstorming: reverse brainstorming = in how many ways can this idea fail? 147
  148. 148. Other final points • We need critical input from others to remove the filters from our eyes • Remember the mental roadblocks: – Lack of facts – Lack of conviction – Lack of a starting point – Lack of perspective – Lack of motivation 148
  151. 151. The 20 steps for good DECISIONS 1. Examine every alternative 2. Use previous decisions if the are still applicable 3. Make long term decisions with the short term in mind 4. Change decisions that are no longer appropriate 5. Consider the implications of each decision 151
  152. 152. The 20 steps for good DECISIONS 6. Try to foresee and prepare for any changes 7. Always ask what can go wrong with your decision 8. Always consider the possible outcomes 9. Always try to balance intuition and logic 10.Avoid making decision that have a large element of chance in them 152
  153. 153. The 20 steps for good DECISIONS 11.Follow a precedent when it works 12.Challenge the company culture if need be 13.Be aware of politics behind decisions 14.Weigh the impact of decisions on people 15.Do not be afraid to delegate the process 153
  154. 154. The 20 steps for good DECISIONS 16.Do not be afraid of rejection, think about an alternative 17.Build your trust in decision making 18.Never make decisions under pressure 19.If it proves to be a wrong decision, take fast action 20.Never postpone vital decisions – make them quickly 154
  155. 155. « Corporate reputations, branding and HR », G.Martin & S.Hetrick, BH, 2006 « Corporate communication »,J.Cornelissen, Sage, 2008 « Blink », Malcolm Gladwell, Back Bay Books, 2005 « Thinking,fast and slow », Daniel Kahneman, Allen Lane, 2011 155
  157. 157. 157