8. October 2022
Great decision making can bring vitalising energy to a transformation. It’s crucial not to treat different decisions with the same approach. A McKinsey & Company article, ‘Untangling Decision Making’ suggests a practical triage:
- Big-bet decisions: These shape the future of the company. Regularly reviewing them is key to overcoming cognitive biases. Good practices: appoint a senior executive sponsor, have a clear problem statement, break the problem down and reconnect, have quality dialogues, use devils advocates, run scenarios, etc.
- Cross-cutting decisions: These require collaboration across groups, without a single point of decision (e.g. product launch). Good practices: lay out the steps, agree on a clear calendar, cadence, hand-offs, establish a limiting number of governance bodies, create shared objectives/measures, etc.
- Delegated decisions: can be handled by individuals or working teams. Best practices: place the responsibility closest to the work for better, more efficient decisions, increasing accountability. Avoid overlapping decision rights, establish an escalation path, don’t let people abdicate.
- Ad hoc decisions: worry about these when number 1 to 3 are optimised 🙂
How well do you segment and treat decisions accordingly?