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IT Management Slideshow:
The Decision-Maker's Playbook

By Dennis McCafferty on 2010-09-29


Why do so many ideas that seem so right at first go so wrong? It's not necessarily because they're bad ideas. It could be that the decision-making process at your organization is badly in need of a tune-up, according to the new book, "Decide & Deliver: 5 Steps to Breakthrough Performance in Your Organization"(Harvard Business Review Press/Sept. 27). Authors Marcia W. Blenko, Michael C. Mankins and Paul Rogers of Bain & Company Inc., a global management consulting firm, present a compelling case for CIOs and other top managers to come up with a systemic model for decision-making. The goals are to minimize risks and increase those factors that most often lead to success. For example, too often, organizations seek 100 percent agreement among a large number of decision-makers before launching implementation. That's a big mistake, the authors contend, as such efforts stall or compromise a great idea, and can lead to failure. By keeping only essential decision-makers/executors involved in the process, organizations can come up with a playbook for idea implementation that can be used over and over again. Here's more on how to do it.

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Assess your decision effectiveness
It's not only about how good your decisions are, but how fast you make them and how well they're executed.

Create a decision scorecard to measure prior choices. Ask yourself:
- Would you make the same decision again if you had the chance?
- Did it save your organization enough money to offset the cost?
- Did it leverage your company to gain advantage over competitors?
- Did it expand markets/revenues in a meaningful way?

Identify your critical decisions
Focus on those that matter most to company performance.

Recognize decision blockades

- Structural sclerosis -- your organization's structure is an obstacle.
- Decision ambiguity -- no one knows who plays which role in major decisions.
- Data dysfunction -- when information needed for effective decisions is missing or incorrect.
- Misalligned measures -- evaluation/incentives don't translate to long-term success.

Support your critical decisions.
Define key roles to support each decision. Determine how each decision will be made and set deadlines.

Tips for success:

- Limit those who can perform “Department of No” functions.
- Avoid “Consensus overdose” -- when organizations waste time getting all of those with veto power to agree. A single “no” can stall decision effectiveness.

Eliminate “consensus overdose”
Remember “the Rule of Seven” -- Any person added to a decision-making group of seven people will reduce its decision effectiveness by 10 percent.

Use a “decision-reset” approach when progress stalls.
Blown deadlines, blurred responsibilities, outcome-free meetings? It's time to redefine the “what/who/how/when” needed for decision effectiveness.

Build an organization that decides and delivers.
Align “hard” elements (structure, processes) with “soft” (culture, talent) to support critical decisions.

Does your structure support effective decision-making?
Your current information systems should give key players the data they need when they need it.

Are your "soft" skills maximized?
Make sure that the critical decision-makers are those with the skills/credibility needed to do so.

Embed decision capabilities in everyday practices.
Equip people at all levels to decide and deliver, again and again.

Train the trainer
“Pay it forward” by training those on the decision-implementation process team, so they can teach many others to do the same.

Decide and deliver every day
Make sure the model is repeatable even as the business changes. This way, execution becomes a natural part of continuous improvement.

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