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![The Decision scorecard “quick test”
When making critical decisions, we choose the right course of action:
4 - > 75% of the time
3 – 51 – 75% of the time
2 – 26 – 50 % of the time
1 - <= 25% of the time
1 2 3 4Quality - Q
We make critical decisions:
4 – Much faster than competitors
3 – Somewhat faster than competitors
2 – Somewhat slower than competitors
1 - Much slower than competitors
Speed - S
We execute critical decisions as intended:
4 - > 75% of the time
3 – 51 – 75% of the time
2 – 26 – 50 % of the time
1 - <= 25% of the time
Yield - Y
In making and executing critical decisions:
4 – We put in exactly right kind of effort
3 – We put in some what too much/ too little vs. amount we should
2 – We put in way too much/ nowhere near effort vs. amount we should
1 – We are off the charts
Effort - E
> 25 = Top quartile – You‟re doing great, keep it up
21-25 = Second quartile – Pretty good, but could be great
16-20 = 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 4
1 2 3 4
1 2 3 4
Instruction
Read each question and check the score
that corresponds to the answer that bests fits
your organization
To get your total score, multiply the first 3
scores together, Then multiply that result by
the Effort score divided by 4
For example, if you circle 3,4,2,3, you would
calculate your total as 3*4*2*[3/4] = 18
Copyright 2010 Bain % Company, Inc. No rights reserved
6](https://image.slidesharecdn.com/decidedeliverv2-130510052030-phpapp01/85/Decide-Deliver-6-320.jpg)
![Organization scorecard “quick test”
Structure
Roles
Processes
Information
Measures
and
incentives
Decision
style
People
Behavior
Culture
Our structure helps, rather than hinders, the decision most critical to our success
Individuals are clear on their roles and accountabilities in our most critical decisions
Our processes are designed to produce effective, timely decisions & action
The people in critical decision roles have the information they need when & how they need
Our measures and incentives focus people on making and executing effective decisions
We make decision in style that is effective ; e.g. a style that appropriately balances
inclusiveness with momentum
We put our best people in the jobs where they can have the biggest decisions impact
Our leaders at all levels consistently demonstrate effective decisions behaviors
Our culture reinforce prompt, effective decisions and action throughput the organization
1 2 3 4
1 2 3 4
1 2 3 4
1 2 3 4
1 2 3 4
1 2 3 4
1 2 3 4
1 2 3 4
1 2 3 4
Instruction
Read each question and
check the score that
matches your level of
agreement/disagreemen
t with the statement
1= Strongly disagree , 2=
Disagree more than
agree , 3= Agree more
than disagree, 4= Strongly
agree
To get your total score,
add up your individual
score
> 35 = Top quartile – You‟re doing great, keep it up
21-35 = Second quartile – Good but room for improvement
16-20 = Third quartile – Organization is serious barrier to decisions
15 or less = Fourth quartile – Major organization transformation required
Total Score
[Add all scores] _ _ _ _ _ _ _ _
(Min = 10, Max = 40)
Copyright 2010 Bain % Company, Inc. No rights reserved
8](https://image.slidesharecdn.com/decidedeliverv2-130510052030-phpapp01/85/Decide-Deliver-8-320.jpg)
![Decision X- ray “snapshot”
Decision: [write decision here]
Decision
effectiveness
4 – Strongly Agree
3 - Agree
2 - Disagree
1 - Strongly disagree
4- Much faster
3 – Somewhat faster
2 – Somewhat slower
1 - Much Slower
4 – Strongly Agree
3 - Agree
2 - Disagree
1 - Strongly disagree
4 – Exactly the right amount
3 – A bit too much/little
2 – Way too much/little
1 – Off the charts
Quality
In retrospect, we made the right
decision:
Speed
Relative to competitors, we made
the decision:
Yield
We executed the decision as
intended:
Effort
The level of effort we applied was:
Organization strengths / barriers
Rating Comments
4- Strongly agree; 3- Agree; 2 – Disagree ; 1 – Strongly disagree
• Our structure facilitated making and executing the decision
well 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 right
decision and action
• Participant had the right context to make and execute the
decision
• 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 decision
well
Copyright 2010 Bain % Company, Inc. No rights reserved
Instruction
Select a decision
to X-ray
Rate the decision
on quality, speed,
yield & effort
Rate your level of
agreement with
each statement
on organizational
levers and note
comments to
bring your score
to life
11](https://image.slidesharecdn.com/decidedeliverv2-130510052030-phpapp01/85/Decide-Deliver-11-320.jpg)
![Decision X-ray “day in the life”
Decision: [write decision here]
Process Month 1 Month x Month y Month z
Group or person 1
Group or person 2
Group or person 3
Group or person x
Group or person y
Group or person z
Step 1
Step 2
Step 3
Step 4
Step 5
Step 6
Step 7 Step 8
Step 9
Decision
Decision Decision
Implementation
Issue 2(e.g. revisiting
decision leads to
unnecessary loops)
Issue 1(e.g. unclear
criteria lead to rework in
input Issue 3 9e.g. follow up with
key group late in process sets
back timing
Issue 4 (e.g. late
engagement
with
implementer
leads to last
minute
changes /
delay
Instruction
Sketch out
the basic
process
steps for
how the
decision
works today
Highlight
issues and
disconnects
in callouts,
reflecting
on un
necessary
loops,
process
disconnects
and
alignments
issues.
12](https://image.slidesharecdn.com/decidedeliverv2-130510052030-phpapp01/85/Decide-Deliver-12-320.jpg)
Uploaded byBrijendra Chaudhary
Decide & Deliver
This document provides guidance on improving organizational decision effectiveness through various assessment and improvement tools. It outlines a 5-step process to 1) assess current decision effectiveness and organizational health, 2) identify critical decisions, 3) set up individual decisions for success, 4) align the organization to support decisions, and 5) embed decision capabilities and sustain results. Various tools are presented, including a Decision Scorecard to measure quality, speed, yield and effort of decisions, and an Organization Scorecard to identify structural or cultural barriers. The document advocates for clarifying decision roles, processes, timelines
More Related Content
Decide & Deliver
- 1. Decide & Deliver KNOWYOUR DECISION EFFECTIVENESS 1
- 2. Five steps toimprove decision effectiveness01 Assess decision effectiveness and organizational health 02 Identify the critical decisions 03 Set up individual decisions for success 04 Align organization to support decisions 05 Embed decision capabilities and sustain results 2
- 3. What is DecisionEffectiveness Decision Score Quality Speed Yield Effort Decision = Performance Quality, Speed and Yield reinforce one another Effort is a drag There are few trade-offs Remember 3 There is always room for improvement
- 4. Where are thedecision barriers Structural sclerosis Decision ambiguity Process paralysis Data dysfunction Misaligned measures Blurred vision Consensus overdose Talent deficiency Behavior breakdown Performance anemia 4
- 5. How to tackleOrganization decision challenge 5 Decision Score Card • It will tell how well or poorly you‟re doing on decisions. It includes assessment of all the elements of decision effectiveness (decision quality, speed, yield) Organizational Score cards • It shows the element of the organization that may be hindering people making decisions quickly and implementing them effectively
- 6. The Decision scorecard“quick test” When making critical decisions, we choose the right course of action: 4 - > 75% of the time 3 – 51 – 75% of the time 2 – 26 – 50 % of the time 1 - <= 25% of the time 1 2 3 4Quality - Q We make critical decisions: 4 – Much faster than competitors 3 – Somewhat faster than competitors 2 – Somewhat slower than competitors 1 - Much slower than competitors Speed - S We execute critical decisions as intended: 4 - > 75% of the time 3 – 51 – 75% of the time 2 – 26 – 50 % of the time 1 - <= 25% of the time Yield - Y In making and executing critical decisions: 4 – We put in exactly right kind of effort 3 – We put in some what too much/ too little vs. amount we should 2 – We put in way too much/ nowhere near effort vs. amount we should 1 – We are off the charts Effort - E > 25 = Top quartile – You‟re doing great, keep it up 21-25 = Second quartile – Pretty good, but could be great 16-20 = 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 4 1 2 3 4 1 2 3 4 Instruction Read each question and check the score that corresponds to the answer that bests fits your organization To get your total score, multiply the first 3 scores together, Then multiply that result by the Effort score divided by 4 For example, if you circle 3,4,2,3, you would calculate your total as 3*4*2*[3/4] = 18 Copyright 2010 Bain % Company, Inc. No rights reserved 6
- 7. Decision scorecard ”readout” example Quality - Q Speed - S Yield - Y Effort - E Low- quality decisions Decision speed slower than competitors‟ Poor execution of decisions Too much / too little effort High- quality decisions Decision speed faster than competitors‟ Strong execution of decisions Exactly right amount of effort 1 2 3 4 Top quartile > 25 Second quartile 21-25 Third quartile 16-20 Bottom quartile 15 or less Total score versus benchmark Total Score (decisions) Multiply Q * S * Y * E/4 = 18 7
- 8. Organization scorecard “quicktest” Structure Roles Processes Information Measures and incentives Decision style People Behavior Culture Our structure helps, rather than hinders, the decision most critical to our success Individuals are clear on their roles and accountabilities in our most critical decisions Our processes are designed to produce effective, timely decisions & action The people in critical decision roles have the information they need when & how they need Our measures and incentives focus people on making and executing effective decisions We make decision in style that is effective ; e.g. a style that appropriately balances inclusiveness with momentum We put our best people in the jobs where they can have the biggest decisions impact Our leaders at all levels consistently demonstrate effective decisions behaviors Our culture reinforce prompt, effective decisions and action throughput the organization 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 Instruction Read each question and check the score that matches your level of agreement/disagreemen t with the statement 1= Strongly disagree , 2= Disagree more than agree , 3= Agree more than disagree, 4= Strongly agree To get your total score, add up your individual score > 35 = Top quartile – You‟re doing great, keep it up 21-35 = Second quartile – Good but room for improvement 16-20 = Third quartile – Organization is serious barrier to decisions 15 or less = Fourth quartile – Major organization transformation required Total Score [Add all scores] _ _ _ _ _ _ _ _ (Min = 10, Max = 40) Copyright 2010 Bain % Company, Inc. No rights reserved 8
- 9. Organization score card”read-out” example Structure Structural sclerosis Blurred vision 1 2 3 4 Top quartile > 35 Second quartile 31-35 Third quartile 26-30 Bottom quartile 10 - 25 Total score versus benchmark Total Score (organization) Add all scores = 27 Decision ambiguity Process Paralysis Roles Processes Information Data dysfunction Measure & incentives Misaligned measures Priorities Decision style Consensus overdose People Talent deficiency Behaviors Behavior breakdown Culture Performance anemia Structural alignment Decision role clarity Productive processes Effective information Measures that matter Clear vision Effective decision style Well deployed talent Role model Behavior Performance passion 9
- 10. Why some decisionsneed more management attention? Complexity •Decision involving many stakeholders or complex processes with multiple hands-off may require a lot of attention and effort to get right Degree of change •If a decision is likely to be affected by a proposed change, such as a new organizational structure, those involved will need to know how it is supposed to work in the future Scope for improvement •A decision that is not working probably needs more attention than that‟s going well Utility as pilot •Some decisions can be set as Pilot for improving decision effectiveness 10
- 11. Decision X- ray“snapshot” Decision: [write decision here] Decision effectiveness 4 – Strongly Agree 3 - Agree 2 - Disagree 1 - Strongly disagree 4- Much faster 3 – Somewhat faster 2 – Somewhat slower 1 - Much Slower 4 – Strongly Agree 3 - Agree 2 - Disagree 1 - Strongly disagree 4 – Exactly the right amount 3 – A bit too much/little 2 – Way too much/little 1 – Off the charts Quality In retrospect, we made the right decision: Speed Relative to competitors, we made the decision: Yield We executed the decision as intended: Effort The level of effort we applied was: Organization strengths / barriers Rating Comments 4- Strongly agree; 3- Agree; 2 – Disagree ; 1 – Strongly disagree • Our structure facilitated making and executing the decision well 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 right decision and action • Participant had the right context to make and execute the decision • 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 decision well Copyright 2010 Bain % Company, Inc. No rights reserved Instruction Select a decision to X-ray Rate the decision on quality, speed, yield & effort Rate your level of agreement with each statement on organizational levers and note comments to bring your score to life 11
- 12. Decision X-ray “dayin the life” Decision: [write decision here] Process Month 1 Month x Month y Month z Group or person 1 Group or person 2 Group or person 3 Group or person x Group or person y Group or person z Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 Step 8 Step 9 Decision Decision Decision Implementation Issue 2(e.g. revisiting decision leads to unnecessary loops) Issue 1(e.g. unclear criteria lead to rework in input Issue 3 9e.g. follow up with key group late in process sets back timing Issue 4 (e.g. late engagement with implementer leads to last minute changes / delay Instruction Sketch out the basic process steps for how the decision works today Highlight issues and disconnects in callouts, reflecting on un necessary loops, process disconnects and alignments issues. 12
- 13. Clarifying the “what-who-how-when”to make critical decisions hum What? • Define the decision we are actually trying to make • Frame the decision in an appropriate way • Split the decision into sub decisions if necessary Who? • Clarify up front who will play what role in each decision 9e.g., decision maker, recommender. When? • Clarify timelines for decision and execution and key milestones • Create a decision calendar for ongoing, interconnected decision How? • Install structured decision approach • Design and specify: - interaction - Critical meeting - Closure and commitment - Feedback loop 13
- 14. Tips for Success14 High performing organization have developed techniques for setting clear guidelines on what Decision they are trying to make Start any discussion on decisions with a reminder of what you‟re trying to decide Start every meeting with a single statement “ The purpose of this meeting is 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 any parts of the decision
- 15. RAPID ®, apractical tool for decision roles Input Agree Recommend Perform Decide Make final decision: "Commit the organization to action” Recommend a decision or an action Formally agree on a recommendation; must be consulted, should not be ignored Be accountable for performing a decision once made Provide input to a recommendation; must be consulted, may be ignored 15 The acronym RAPID – reflect the primary roles in any decision Ensure the only one person has the D Limit the A roles & ensure that sign-offs is on recommendation, not on the decision Let key players know their exact goals Don‟t underestimate the – perform role When necessary be explicit about who will decide RAPID roles
- 16. The how –elements of a best- practice decision process Structured decision approach • Conscious approach to decision: set criteria, consider relevant facts, develop alternatives and makes a clear decision weighing all of these 1 Clear Steps & sequence • Logical steps and sequence for how decision roles and process will work in practice • Clear guidelines on how and when to escalate and when not to 2 Meeting & Committee • Key meetings required for the decision specified, with purpose and participants clarified up front • Appropriate committee reviews 3 Closure & Commitment • Final decision communicated to key parties • Resources allocated (people & money) • Execution plan in place(actions, accountabilities, milestones) 4 Feedback loops • On going review of execution progress to drive fast corrective action or replicate successes 5 16
- 17. 17 Use a structureddecision approach Agree on a criteria Gather all relevant facts Always ensure more than one alternative Establish guidelines for steps & sequence (including escalation) Defines path for escalation Never shoot the messenger Be aware of maverick escalations Design meeting around specific decisions Distribute meeting material in advance Mark them as •Information purpose only •For discussion & debate •Decision & action Allocate required resources Rebalance team to assist in execution Let people clearly know what decision is made Close and commit Act quickly on feedback Devise feedback loops Replicate successes Establish feedback loops TheHow–elementsofabestpracticeprocess
- 18. Tips for Success18 Separate the decision from the discussion of choices First consider relevant facts and proposed alternatives, Discuss whether facts are sufficient and all the right alternative are on the table In separate session choose amongst the alternatives and plan mobilization for execution Follow the rule of Seven for meetings Every person added to decision making group over seven reduces decision effectiveness by 10% Track the timing as well as the level of bottleneck resources to ensure effective execution Top performing companies typically follow these practices:
- 19. Decision centered versustraditional approach to organization Traditional approach Decision – centered approach HARD Is our structure aligned with our strategy? 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 processes effective and efficient? Are our processes geared to produce effective, timely decisions and action? So our information systems support our business objectives? Do the people in key decision roles have the information they need when and how they need it ? Is our compensation competitive with peers? Do our performance objective and incentive focus people making the right decisions for the business? SOFT Do we have clear and compelling mission and vision? Do people throughout our organization have the context they need to make and execute the decision they face? Is our management style sufficiently inclusive? Are our people clear on our preferred decision style (directive, participative, democratic, consensus) Do we have an effective leadership team? 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 action throughout 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 on decisions? 19
- 20. 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 pull 20
- 21. 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 Impact 21
- 22. 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 it 22
- 23. Video from thecreators 23 Step 01 Step 02 Step 03 Step 04 Step 05 The authors