The road to decision quality

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We know the impact decision making has on the success – and failure - of our organizations. As it turns out, affecting sustainable organizational change around decision quality is challenging.Drawing from project and change management fundamentals, organizational behaviour and the lessons from other disciplines and industries, we have developed a maturity model that sets long term vision, short term targets and a framework to map the journey.

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The road to decision quality

  1. 1. © 2013 Nexen Inc. THE ROAD TO DECISION QUALITYSCOTT BARTSCH, PENG MENG PMP DIRECTOR OF DECISION ANALYSIS, NEXEN INC.
  2. 2. © 2013 Nexen Inc.© 2013 Nexen Inc. AGENDA 1 ORGANIZATIONAL DECISION QUALITY What’s the motivation? 2 THE CHALLENGE Why is achieving organizational decision quality difficult? 3 THE ELEMENTS What are the key considerations to developing a solution? 4 THE MODEL What does the framework look like? 5 THE VALUE What benefits can we expect? 6 THE ROAD What’s worked and what hasn’t? 2
  3. 3. © 2013 Nexen Inc.© 2013 Nexen Inc. ORGANIZATIONAL DECISION QUALITY Decision Quality Alignment Consistenc y Capability Application Culture 3
  4. 4. © 2013 Nexen Inc.© 2013 Nexen Inc. THE CHALLENGE EMPLOYEES LEADERS Motivation (executive commitment) DA IMPLEMENTATION Motivation (leadership commitment) Motivation (personal) Impact (personal) Impact (work) Alignment (culture & process integration) Fear (unknown future) Fear (unknown future) Capability (management training) Security (job) Security (control / power) Involvement Source: Prosci Benchmarking Report Source: DAAG 2012 4
  5. 5. © 2013 Nexen Inc.© 2013 Nexen Inc. THE ELEMENTS Culture Attitudes Beliefs Customs Change Management Awareness Desire Knowledge Ability Reinforcement Project Management Charter Roadmap Governance AnaloguesSafety 5
  6. 6. © 2013 Nexen Inc.© 2013 Nexen Inc. THE MODEL - MATURITY IMPROVING Continuously improving PERFORMING Consistently delivering ESTABLISHING Organizational commitment MANAGING Demonstrating value EMERGING Executive commitment PEOPLE PROCESS SUPPORT 5 4 3 2 1 6
  7. 7. © 2013 Nexen Inc.© 2013 Nexen Inc. THE MODEL - MATURITY IMPROVING Continuously improving PERFORMING Consistently delivering ESTABLISHING Organizational commitment MANAGING Demonstrating value EMERGING Executive commitment PEOPLE PROCESS SUPPORT 5 4 3 2 1 Ad hoc Definitions Guidance Documents Standards Policies 7
  8. 8. © 2013 Nexen Inc.© 2013 Nexen Inc. THE MODEL – KEY RESTULTS PEOPLE PROCESS SUPPORT ESTABLISHING Organizational commitment3 SHARE raise awareness, share information and leverage corporate skills and expertise DEVELOP develop internal DA skills and competency APPLY demonstrate the value of DA through practical application SUPPORT establish an organizational structure that supports internal practitioners ALIGN define, integrate and support a common approach to decision analysis ENABLE provide enabling tools and applications to support the practical application of DA MANAGE apply principles of fair process and stage-gate governance to deliver objectives. 8
  9. 9. © 2013 Nexen Inc.© 2013 Nexen Inc. THE MODEL - APPROACH CENTRALIZED DECENTRALIZED central, internal consulting group network of practitioners supported by central group dispersed network of practitioners 9
  10. 10. © 2013 Nexen Inc.© 2013 Nexen Inc. THE MODEL - GOVERNANCE IMPLEMENTATION LEADS Provide support, expertise and recommendations to the implementation team and local practitioners PRACTITIONERS Apply DA principles for day-to-day asset management SUBJECT MATTER EXPERTS Responsible for supporting implementation team, leads and practitioners IMPLEMENTATION TEAM Responsible for successful project delivery STEERING COMMITTEE Review recommendations and make DA implementation decisions. ADVISORY GROUP Champion global DA implementation, ensure key stakeholder support and provide expertise and guidance to the steering committee ADVISORY & FEEDBACK PATHDECISION MAKING PATH 10
  11. 11. © 2013 Nexen Inc.© 2013 Nexen Inc. THE MODEL – VALUE ORGANIZATIONAL DECISION QUALITY MATURITY EVALUATION IDENTIFY STRENGTHS & AREAS FOR IMPROVEMENT BENCHMARK (INTERNAL AND EXTERNAL) ALIGNMENT OBJECTIVES CLARITY IMPLEMENTATION FRAMEWORK FOR ACTION DEFINE LONG-TERM SUCCESS SHORT-TERM TARGETS ROLLING WAVE PLANNING STATUS & PROGRESS MEASUREMENT EXPECTATION MANAGEMENT 11
  12. 12. © 2013 Nexen Inc.© 2013 Nexen Inc. THE ROAD EXECUTIVE SPONSORSHIP RESOURCES CHANGE* EXECUTIVE SPONSORSHIP GRASS ROOTS SUPPORT SUBJECT MATTER EXPERTS SKILL DEVELOPMENT BUSINESS PROCESS ALIGNMENT 12
  13. 13. © 2013 Nexen Inc.© 2013 Nexen Inc. GET BEHIND THE WHEEL 13

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