How Companies Can Make Better Decisions
Hock et al (2001) state that only few of us are aware that we do not
make good decisions, and one of the reasons is that, as long as the results are
positive, we do not look closely to our decision processes. Blenko (2010) lists
four elements for an effective decision making:
1. Quality: goal achievement
2. Speed: how fast decisions are made and how it
plays a role on its effectiveness
3. Yield: the planned decision is coherently put
in practice
4. Effort: are the action being fully embraced
and acted upon.
Through an extensive research, Blenko (2010)
confirmed her hypothesis that decision making effectiveness is correlated with employee
engagement and brings positive financial results. Considering the conclusion
that for a change to happen in its totality, it requires the involvement of the
organization also as a whole, it is impossible to neglect the importance of the
employees as change agents. On the last three elements of Blenko’s list, the direct
and indirectly correlation between the decision and people involved in the
change is undeniable.
Blenko (2010) also listed steps for effective
decision making:
1. Understanding
how well decisions are being made
2. Identifying
critical strategic and operational decision
3. Setting
up decision for success by defining what is the decision, who is involved, how
it will be implemented and when (calendar)
4. Ensuring
support from all elements of the organization
5. Holistic
embedding/ embracement inside the organization.
Again,
if a closer look is taken at Blenko’s five steps, it is undeniable how the
human factor plays an intrinsic role on the decision-making process and the
power it “holds in hand” for its effectiveness. Considering the researchers’
data and presentation, I believe employee engagement should be considered not
only as a change agent after the decision is made, but also in the organization/
change development. Critical decisions are not necessarily the big ones, but
often includes strategic and operational decisions. Who best to describe and
debate about operational factors if not the “operator”?
On
implementing change, the frontline is the one that will deal and live with the
change in a daily basis. How to ignore their opinion before the change is made,
and on the ongoing process of the decision implementation? If employees do not
understand the purpose behind the change, if does not see the long-term
effects, I believe that hardly the decision or the change will happen fully.
Impediments or barriers for good decision
making, according to Blenko (2010), are not limited but include the following:
1.
Establishment of decisions that matter
2.
Unclear of who makes the decision and who
is involved on the process of decision making
3.
Lack of leadership behind the decision-making
process
4.
Lack of expertise
Adding
to Blenko’s list, I also believe that an unsafe platform for open discussion,
highly hierarchic organizations and departments agenda are possible and
frequently witnessed barriers for effective decision making. I also pursue the
idea that two more crucial elements should be included on Blenko’s list (previously
stated) as: (1) Data collection/ Inventory and (2) Holistic Involvement. The
own author indirectly describe these elements as important factors, but not
necessarily lists as core elements for effective change.
A way to apply this exercise and knowledge
in my career is trying to find platforms to engage on the change process. In my
organization often the workforce is only informed about the decisions made. We
have internal and external Organization Development Practitioners at the moment
but the involvement of employees is limited to change implementation, and often
forced downwards. I know about trials before changes happen and I am also aware
about change ambassadors that the company choose to represent the workforce on
the change development. Looking for a platform where I can be part of this team
would assist me on directly chang the decision-making enforcing reality. Lately
I have been in workshops where changes are being informed. Although the workshops
are designed for informative communication, it is clear that the company want to
hear from employees after the change is being implemented. Taking this reality
in consideration, I can open the communication channel with the departments
directly involved in the operational change process (Product and Development) and
report directly to my manager to look for support and guidance on opinion and
communication patterns in the office, as I work remotely.
References
Blenko, M. (2010, October 13). How companies can make better
decision, faster. Retrieve from https://youtu.be/pbxpg6D4Hk8
Hoch, S., Gunther, R., Kunreuther, H. (2001). Wharton on Making Decisions. New York, NY: Wiley.
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