Decision-making is a critical leadership skill in all industries. It not only influences business performance and future prospects, but also the experience of employees and stakeholders.
HR has plenty of opportunity to improve this area.
This article, based on my experience in helping people make decisions at work, will explore the roots of bad decision-making and outline six principles to help you make good choices in an increasingly complex world.
Common traits of faulty decision making
If decision-making is faulty, people may either go in the wrong directions, circle in circles, or just stand still. Costs rise, time and other resources go unused and growth opportunities are lost. The energy levels drop, the work slows down and the results suffer.
Typically, decision-making falls short on one of two fronts. Either the decision is delayed past what is reasonable, or it is poorly made and executed.
1. Delayed decisions
Managers may be hesitant to make decisions if they are delayed. It could be that they lack the authority or courage to face the consequences. Sometimes, a lack of information explains the delay or that the right time has not yet arrived. They can also be used as excuses to cover up leadership weaknesses.
2. Poor Choices
Managers make poor decisions when they miss the nuances, which are often human in nature, of a given situation, or if they fail to take into account what is unknown. The formal authority to make decisions is not always a sign of intelligence, competence or selflessness. A changing environment can turn a good strategy into a bad one.
Making decisions in a complex and human world
Two realities make decision-making hard:
- Work is a complex and shifting world. Move A to your left, and B falls over, while X, a new thing you didn’t know existed, also falls.
- Humans are rarely predictable.
You must take into account the human element and complexity of the workplace to make good decisions. Structure, but not bureaucratic processes, can be a good guide. To make good decisions, you need to have intelligence, thoughtfulness and compassion. You also need discipline, selflessness, and discipline.
Six essentials for good decision-making at pace
We introduce structure and rigour in our work with teams, organisations and individuals to enhance the assets of good decision makers (and to reduce less constructive influences).
The six imperatives below, which combine structure with substance, can help people from diverse backgrounds find sound answers to difficult questions.
1. Find data in dialogue
The solidity of the numbers in bar charts and spreadsheets inspires confidence. Statistics can be easily twisted into a misguided, localized narrative. Complexity can lead to sound decisions.
Listen to all people, no matter their seniority. Dialoguing will help to build understanding and commitment.
2. A better direction
We encourage long-term value rather than quick returns on investment. However, we do not want to over-engineer our decisions. What matters most when you want to make a change is the direction you’re facing.
You need to find a way out of your rut. Turn the corner, and move in a different direction. If everyone is looking in the wrong direction, it’s impossible to see a brighter future or organize yourself.
3. Let go of the manager’s ego
Culture tells us that with a desk in the corner, we have the right to take decisions. While experience can be used to gain a better understanding of complexity, the corner office isn’t the center of the universe.
As a manager, be thoughtful and give your colleagues the space to make their own decisions. Diverse viewpoints will improve the quality and effectiveness of your decisions. You’ll also gain from the enthusiasm that the team has for their new project.
4. Accept that you may be partially wrong
There is seldom a right or wrong decision. In a complex human system, almost any decision will have positive or negative consequences.
Teams who linger on the perfect decision are slow or stagnant. By building confidence in experimenting, accepting risk as inevitable, and taking visible steps to progress you can avoid this.
5. Change your mind
We tend to fixate on one direction when we make a decision. We look for evidence that will support our choice. In a world that is complex and constantly changing, it’s impossible to have all the information you need.
Being flexible and displaying humility are important qualities for a leader. Changing course is not a sign that you have lost, but rather, it shows maturity, judgement and confidence.
6. Slow decision-making is a concern
A risky decision is always the worst. This is an agreement to maintain the status quo. It’s the situation which is likely to cause problems, and from which you want to escape.
Ask why a decision has not been made. When teams realize they are stuck in a rut without good reason, such as lack confidence, political agendas, and so on, they will often be inspired to take action.
Good decisions made fast
The decisions we make are the gateways to our future. They affect the organization, its employees, and all other stakeholders. In a world that is complex and moving fast, it’s important to make decisions quickly, but also with good judgment.
In this regard, we suggest giving your team a simple structure that will support their decision-making and enhance their leadership skills. You’ll be helping everyone to embrace a brighter future by doing this.
