Many organizations have policies in place to help managers with day-to-day decisions. Such policies ensure that an organization consistently operates under the same rules. Should a department vacancy arise, for instance, a manager simply follows the existing policy on promotion, recruiting, and hiring.
But sound policies are no guarantee that good decisions will actually be made. That requires having well thought-out processes in place to lead managers, employees, and ultimately the entire organization to better decisions and better outcomes.
A sound and systematic decision-making process is critical for improving any decisions related to new strategic directions, but a good process is equally important for enhancing daily choices made on the job.
Having a process further helps to circumvent the all-too familiar problems of organizational politics, lack of buy-in, bottlenecks, and the ever-shifting priorities that can paralyze progress.
Decision-making processes need not be complicated to be effective, and there are many good methodologies available to organizations. The best of them create smoother coordination, faster responses, and better judgment using these common elements.
- Gather relevant input from key stakeholders. Good decisions require upfront insights and perspectives, particularly from those who’ll be involved with implementation. For this reason, organizations must bring the right people to the decision-making table. That doesn’t mean the process should be over-democratized. Consultations should take place with those key individuals across the organization who can provide firsthand facts and evidence to help shape a sound decision. Nor does it mean that all input must be accommodated. Rather, all input should be carefully weighed before reaching a final decision.
- Require informed debate. Organizations need open and honest discussions whereby divergent viewpoints must be presented before making a decision. Posing questions that stimulate critical thinking, bringing in a diversity of ideas, suspending judgment, and practicing active listening are key signs of a healthy debate.
- Strive to prevent information overload. Research and data are crucial to decision-making, and obtaining a wide variety of information has never been easier. But there comes a time when the research must end and the analysis must begin. Otherwise, organizations find themselves bogged down in data, with a decision forever pending based on that next piece of “vital” information (and the next, and the next).
- Work toward buy-in, not consensus. It’s rare that complete agreement will ever occur; however, buy-in is essential to successful decision-making. Without it, companies may face resistance and roadblocks that greatly slow down implementation.
- Assign clear roles and appoint decision authority. Nimble decision-making processes ensure there’s never ambiguity over which persons or departments have the ultimate yes-no authority for various decisions. Responsibilities for providing input, making overriding decisions and those along the way, implementing action, and taking accountability are made clear from the start.