Saturday, February 8, 2014

A630.4.4.RB - How Companies Can Make Better Decisions


Marcia Blenko argues that decision effectiveness correlates positively with employee engagement and organizational performance. How do you think employee engagement relates to decision effectiveness?  I would agree that companies with higher decision effectiveness have happier employees.  When employees buy in and are on board with the decision being made, they are more committed to making sure those decisions are executed properly.  When employees know they have a part in the decision making process, they become committed, which translates into better productivity and quality.  I think that the four elements of good decisions {quality (Q), speed (S), yield (Y), and effort (E)} are also the qualities you get from employees who are a part of the process.  Using the four elements can enhance in better productivity and efficiently.  Form my perceptive, employees are willing to not only execute decisions but also accept them while at the same time putting forth more effort to help lower costs by working harder to achieve company goals.
 
What are some impediments to good decision making?  Companies have become quite complex over the years.  There are a lot of people involved in the decision making process.  Some companies have a President, CEO, CFO and even a board of directors that make decision; thus sometimes too many cooks in the kitchen.  Some companies operate in a matrix, and it is hard to tell who is making what decisions.  Sometimes, employees at all level are unclear when it come to whom should be involved in the decision making process.  This brings up the next impediment of time.  Organizations of every industry are often forced to make split-second decisions that have significant impacts on their business, but often times it’s hard to make a quality decision in so little time.  Decision making is also impeded when people are trying to make a decision without any type of current information or data. This would be a huge hindrance in my opinion. In some cases, leadership can impede the decision process because the employees do not support the decision that has been made. For example, they must be open to discussion during the decision process. If the company appoints someone to make a decision, they may or may not like the outcome or the costs related to the decision made by the appointed party. Without the support of leadership they entire decision making process could come to a stop. There has to be a pool of talent to carry out the decision making process and the final decision implementation.

Blenko suggest that there are four elements of good decisions: quality, speed, yield, and effort. In your opinion, is there anything missing from this list?  In my opinion, knowledge is missing from this list.  Marcia Blenko stated that decisions are often hindered because people make decisions without any information.  Research or knowledge is always a key in any form of good decision making.  Current market research or data increases the quality, speed, and yield of good decision making with will determine the overall effort needed to achieve the organizational goals. Employee engagement should also get added to the list. This is another key to ensuring that decisions are properly executed and embedded throughout the organization. Employee engagement eases the transition and implementation of company goals based on company decision making. Operational decisions are also very important and directly affect the employees.

What can you take away from this exercise to immediately use in your career?  Due to the fact that part of my job is curriculum development and training, I would use the four steps of good decision making to determine what information will be most beneficial to the students to achieve the educational goals of the courses I develop.  This, in turn, benefits the organization as a whole. I also take away from this exercise that some organizations are stronger in one area versus other areas of effective decision making. With this knowledge I can first determine where the strengths of my current organizations lie—and possibly make suggestions as to how this can be improved.

Once you have reflected upon these questions, list any other questions or insights that have come to you as a result of this exercise.  As a result of this exercise, a few questions have come to mind. Marcia Blenko says that they use 1000 companies as these bases of their decision effectiveness scale. Does the list ever change? If so, how often—or do they just keep the same companies on the list? Do they offer easy to improve decision effectiveness for those companies that are strong in some areas and weak in other? I do not think that all companies are created equal, so sometimes in spite of making all these best decisions, and organizations may not reach their goals. I think that sometimes organizations may need to slow down on their decision making—especially if you operate in an industry in which things are ever changing. By the time a company completely implements the change, consumer needs may have changed as well. Earlier, we discussed some impediments to good decision making. I think it is good to discuss these obstacles because they are often overlooked by those not in leadership position. We always look at the cost or bottom line without considering other factors.

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