Everyone has to make decisions, so why not make better decisions more efficiently?
Advice from organizational effectiveness expert Jay Scherotter on the power of streamlined decision making
Understanding decision-making methods and decision types is key to streamlining any decision, says Jay Scherotter, Director of Learning Resources and Organizational Effectiveness at Scottsdale Insurance Company.
“There is a significant payoff by making quality decisions and making them efficiently,” Jay says.
Why is it important to have in place a decision-making method before you have any decisions to make?
“If you know the type of decision you’re having to make, then three things magically will happen,” Jay says. “Clarity, efficiency and effectiveness.”
- Clarity: “If a decision-making method is in place, we can be into the content and not into the emotion of whose decision it is,” Jay explains. This, he says, empowers people and opens the floor for productivity.
- Efficiency: “Efficiency is a really big one, because efficiency means time,” Jay says. “Efficiency is all about speed and ease of decision making. Groups and people often swirl, and they don’t have to swirl.”
- Effectiveness: “Effectiveness means we have a quality decision,” Jay says. “Decision quality is really important, not only in business life but also personal life, family life, secular and non-secular life.”
- Autocratic: One person makes the decision with little input.
Pros: Fastest and good in crises.
Cons: Least likely to be wisest or accepted. - Consultative: One decision maker receives advice from others.
Pros: Fast and more informed than autocratic.
Cons: Takes more time than autocratic and still unlikely to be supported. - Majority: Decision is reached by a vote of more than half, two-thirds, or the highest percentage.
Pros: Familiar and can be used with any group larger than a pair.
Cons: Win-lose decision with little commitment from the losers and issues can be taken personally. - Consensus: Everyone can live with the decision.
Pros: Better decision reached based on common principles and values, which promotes synthesis and commitment.
Cons: Takes more time and is difficult in large groups because progress can be blocked by one; can lead to lowest common denominator. - Unanimous: Total agreement from all decision makers.
Pros: Most commitment because it is based on common principles and values and promotes idea synthesis.
Cons: Progress is blocked by one; almost impossible with more than a pair.
What are the decision-making methods or styles and the pros and cons of each?
As a leader, it is important to explicitly establish the decision-making method for the group. Doing so will help your team have clarity of what’s expected and how decisions will be reached according to Jay.
“Once you establish a method, then the real decision making can begin,” says Jay.
What are the different decision types?
Establishing how you will make decisions is only one part of the equation. You and your team should also be aware of the types of decisions that you may be required to make:
- Cause Analysis: Determine the cause of a situation. Ask: What happens and why?
- Go/No-Go: Decide yes or no. Ask: Do we do it or not?
- Criteria-Based: Select the best alternative. Ask: Which one works when measured against our criteria?
- Situational Analysis: Identify top priorities. Ask: Where do we start?
What are some of the benefits of using the right decision type making for the people involved?
If the members of your team are clear on who is going to make the decision and how, they can focus on the content and not “swirl” at unproductive activities.
This leads to two important outcomes, according to Jay:
- People feel Empowered: I know my role in this process. If your team feels empowered, they can make quality decisions without wasting time.
- People are Engaged: My voice is heard. Your team can relax because they know where they are going and what the “rules” are to get to the goal.
How do I implement a streamlined decision-making process?
The different methods of decision-making – consensus, autocratic, unanimity, majority or consultative – can be used with all decision types.
Here are two simple tips Jay recommends to help you apply your decision making
1) Be prepared
“Prior to going into a decision, do some planning of what kind of decision this is and who’s involved in the decision-making” Jay says.
2) Create tools for decision making
Jay recommends developing tools for the different types of decisions. For example, a simple piece of paper with a line drawn down the middle can help you list pros and cons for a go/no-go decision. For a criteria-based decision, you can use a table with criteria in the top row and choices in the first column and indicate with plus or minus if the choice meets your standards.
It’s your call: Waste time making poor decisions or save time making great ones
Jay explains that organizations that don’t consciously implement decision making methods and identify decision types will waste time and energy, as well as alienate group members who are not on the same page regarding who will make decisions and how they will be made.
“”Not being smart about decision-making methods and the types of decisions you’re making can and does save time,” Jay says.
“Regardless of method or type, it’s also important to make a distinction between a conclusion and a decision. A conclusion is the result of your process, a decision is having assessed any remaining concerns or risks and then committing to a final decision.”
Jay Scherotter, Director of Learning Resources & Organizational Effectiveness at Scottsdale Insurance Company, has 27 years of experience leading adult and corporate learning and organizational development. He specializes in leadership effectiveness, career development, project management, and performance improvement.