By Holly Feldman and Luke Waggoner
How do high-functioning organizations weather periods of heightened uncertainty? They decisively direct their teams and make bold decisions to adapt and position themselves for the future. Far from being reckless, high-functioning organizations are bold and decisive because they have effective decision-making systems.
Timely, high-quality decision-making is essential for responding in a dynamic environment. As a leader, you should objectively evaluate whether your organization is equipped to improve decision-making. In this article, we will explain how to assess those factors and improve decision-making processes in three steps:
In times of uncertainty, leaders must identify the critical few decisions that are most urgent and impactful to their business.
Time and attention are scarce resources; not all decisions have the same impact or need to be made now. It is important to preserve leadership bandwidth for the decisions that are most urgent or have significant consequences for your organization, and then sequence them accordingly.
Get the right people involved in decision-making by first clarifying what you need to know to make the decision. Then involve those who can interpret and sort incomplete and conflicting information and who will be key to driving execution.
Organizations often struggle to determine who to consult before making key decisions, especially during periods of ambiguity or stress. Consulting too many people prolongs the process, makes it harder to be decisive, and can water down the final decision. Consulting too few people risks missing key facts or overlooking creative solutions. In our experience, companies that consistently exhibit bold and decisive decision-making focus on involving the right people in each decision, irrespective of the total number.
The key task, then, is determining who those right people are. They usually add value in one of two ways:
While you won’t have as much information as you’d like, you can compensate by bringing the right minds together to determine the best course of action. Experience, good judgment, creativity, and problem-solving are invaluable in a nebulous environment. Even if the people with those skills or experiences aren’t usually involved in making a decision, consider involving them now.
Equally important is having the “on-the-ground” perspective on how decisions will be executed. We’ve all seen too many executive decisions that seemed logical but eventually failed because leaders didn’t factor in key details of how they’d be implemented. Especially with urgent decisions, it’s critical to keep the deciders and doers aligned to avoid making decisions that are too difficult or impossible to execute.
Determine the appropriate governance—the parameters for where, when, how, and how often you’ll make each decision—based on stakeholder involvement needs and decision complexity and stick to consistent processes on an ongoing basis.
Decision-making forums are key tools of governance by which leaders control where and how decisions are made. Clarifying the focus, frequency, and method for how you’ll process information, identify knowledge gaps, and make and communicate decisions creates predictability and stability that can anchor leadership teams in times of uncertainty. Regular forums also provide an opportunity to evaluate the impact of key decisions and reassess them in light of new information.
A common misconception is that governance and disciplined decision-making processes create bureaucracy. In truth, they don’t if they are appropriate in focus and number. To keep governance in check:
In the end, being bold and decisive in a crisis comes down to an organization’s ability to intentionally determine:
Leadership teams that get clear on these three things will operate more effectively in a quickly changing world. While you won’t be immune to the challenges of today, you will be better equipped to adapt to whatever the future holds. Taking bold and decisive action to help your team navigate uncertainty will help you emerge stronger in the “new normal” that awaits.
To discuss how your organization is navigating its decision-making during challenging times, contact us today.
For further reading on resilient organizations, visit: