How hard are decisions ?

A key challenge in businesses I work with is the frustration of making decisions. Small businesses have the edge here as they can usually turn a decision in short order. The bigger the company, the bigger the problem.

I hear that the primary impediments to decisions are incomplete data, data that doesn't support any of the decision options, inaccessible executives, gut feel, and sometimes people who are just not ready to decide.

First, data is almost always gray. If the decision were black and white, it wouldn't so much be a decision as an 'OK let's do that'. So gray is the norm for decision making and you need a process that brings closure when the answer is not obvious.

Inaccessible executives are a big problem in all sizes of business: especially for businesses that span geographic locations and time zones. There is no magic here; you need to make decisions using conference calls.

Gut feel is tough to deal with. I regularly see executives who have a strong hunch - a feel - about which path to take and their track record (or position of power in the business) provides weight to their hunch. You need a process that can characterize the data as best possible and then to make space for their intuition to take it the rest of the way.

Everyone needs one general-purpose tool for making decisions. Although the one I use most is called by a variety of names, it is most commonly called a Decision Matrix. It's simply rows titled with a list of criteria and columns listing possible outcomes to be evaluated. The body of the matrix then contains a number or mark that shows how well each criteria supports (or argues against) each of the possible outcomes. The scores are then totaled and usually one outcome scores as best. The one rated best may not be the one chosen - the principal value is the discussion surrounding the criteria and how well each option is supported by the criteria.

The first advantage of this approach are that it allows for gray data. Also it is systematic enough to use on a conference call - or better yet a conference call supported by WebEx or another shared-view tool that allows everyone to view the matrix as it is filled in. The facilitator keeps the group focused on discussing and valuing one cell of the matrix at a time.

Often this process helps intuitive decision makers talk about their preferences; the conversation around filling in the cells of the matrix may help them articulate that intuitive feel and share their decision process.

If you'd like a more complete description of this process, please take a look at this American Society for Quality website which explains the Decision Matrix process in more detail. ASQ on Decision Matrix Methods

Need help with a knotty project decision? We can help. Call Dennis Smith at 617-642-6884