Making Executive Decisions

"Informed decision-making comes from a long tradition of guessing and then blaming others for inadequate results. " - Scott Adams


Everyone makes a decision, everyday, 24x7. I told my wife the other day we were not going to an affair that we had been invited to. (My reasoning is outside the scope of this discussion -:). But, I made the "executive" decision, and that was that ! Well, until the topic gets revisited and the discussion re-opened. We employ an Iterative Decision Process. We can revisit the decision, but only if new and relevant information can be presented that could significantly change course. (Think of it as "Appellate Court" )

Now, suppose we used an Iterative Decision Process to our businesses? In fact, some already do, and may not realize it. For years we have learned and read about decision processes; you know them; Decision Trees, Consensus, MultiVoting, etc. And for years, we've read about corporations that wallow in a decision, take too long, and miss an important market opportunity or critical strategy or major architecture decision. Why is that? What prevents very smart leaders from finalizing important decisions? What is so difficult to weigh the facts, look at the alternatives, and pick one ? Far too often executive management falls prey to analysis paralysis. Having experienced this phenomenon first hand, it is stressful, emotionally draining and for the most part, completely unnecessary! Research has shown that " smart people don’t automatically make good decisions,” said Eric Johnson, a professor at the Columbia Business School". It is a skill that can be learned and fined tuned.

Governments are notorious for indecisiveness. Call together a group of politically motivated people and the outcome is predictable. Cities and towns will debate issues for months to the detriment of its constituents. An elongated conclusion most certainly has an effect on the people waiting for the answer. How good is that?

And that led me to wonder how politically motivated we are with our leadership teams within the corporate environment? Do you find your executive meetings filled with colleagues attempting to honestly solve issues, or, if you listen closely to the words is there some other agenda at heart? Think of the last set of meetings you were involved with that fit this profile, and now ask what you could have done better to break the pattern.

As a leader, keep in mind the effect of indecisiveness on the employee population. Being a leader carries the responsibility of quick, accurate decision making. The more belabored the process, the more significant an increase in employee anxiety is sure to result. And we can all agree that today's world is filled with enough anxiety already. When your team is waiting for the answer; ...what's our next goal? Are we going to build that next gen product? ....remember that sluggish behavior on the part of the leadership team is a sure fire way to demotivate and create a stressful atmosphere.

I am by no means suggesting that the executive issues you face are trivial. I certainly advocate that items are thoughtfully weighed with proper analysis. Here's one suggestion though; Put a time-box around these decisions. Give it a time limit of say 2 weeks, 1 month; whatever seems doable but aggressive. And communicate that to those waiting for the results. Next, take it as your personal commitment to meet that time frame. Get your fellow executives to do the same. Keep the rhetoric low, the conversations on track, and keep the ball moving forward.

Follow the motto; The worst decision you make is to not make a decision at all.

\Mike