Decisions, Decisions: How to Make the Right Call
Making good decisions takes experience, but there are ways to up your game
This is Leadership Lessons, your blueprint for practical leadership success with actionable advice on how to excel as a manager, like how to give useful feedback.
Making decisions is a critical aspect of leadership. Managers are faced with numerous choices daily, ranging from minor operational adjustments to significant strategic shifts. The ability to make sound decisions is a prerequisite for your team's success and your growth as a leader. This article will examine practical decision-making strategies that will help you navigate the complexities of leadership with confidence.
Embrace the Responsibility of Decision-Making
The first step in effective decision-making is embracing the responsibility that comes with it. As a manager, your role involves making decisions that will impact your team and the organization. There's no getting around this, and trying to pretend otherwise only leads to trouble. This may seem obvious, but fear of making mistakes often paralyzes new managers, leading to indecision or overly cautious choices.
Mistakes are valuable learning opportunities. Each mistake provides insights that help refine your judgment and improve future decisions.
To overcome this fear, it's important to understand that mistakes are valuable learning opportunities. Rather than fearing errors, view them as a natural part of your growth as a leader. Each mistake provides insights that help refine your judgment and improve future decisions. Accepting this reality will free you from the pressure of perfection and help you take a proactive approach to decision-making.
Recognize Which Type of Decision You're Facing
Not all decisions carry the same weight or require the same level of scrutiny. In his 2015 Amazon shareholder letter, Jeff Bezos distinguished between what he called Type 1 and Type 2 decisions:
Some decisions are consequential and irreversible or nearly irreversible -- one-way doors -- and these decisions must be made methodically, carefully, slowly, with great deliberation and consultation. If you walk through and don't like what you see on the other side, you can't get back to where you were before. We can call these Type 1 decisions.
But most decisions aren't like that -- they are changeable, reversible -- they're two-way doors. If you've made a sub-optimal Type 2 decision, you don't have to live with the consequences for that long. You can reopen the door and go back through. Type 2 decisions can and should be made quickly by high judgment individuals or small groups."
Type 1 decisions are consequential and nearly irreversible. These decisions must be made methodically, with great deliberation and consultation. Examples include entering a new market or making significant changes to company structure. But far more often, the decisions you'll need to make are Type 2 decisions, which are changeable and reversible.
The way you approach a decisions will differ depending on it's type. Understanding which sort of decision you're dealing with allows you to allocate your time and resources appropriately. Avoid the tendency to overcomplicate Type 2 decisions by treating them as Type 1.
Establish a Decision-Making Framework
When you're faced with a Type 1 decision, it’s often helpful to follow a decision-making framework. A systematic approach ensures that all critical aspects of a decision are considered, reducing the likelihood of oversight and improving the quality of your choices.
One of the most effective frameworks is the DECIDE model, designed in 2008 by Professor Kristina Guo. The DECIDE framework consists of six steps: define the problem, establish the criteria the solution should meet, consider the options, identify the best alternative, develop and implement a plan of action, and evaluate the solution.
Define the Problem: Clearly articulate the issue you need to address. Understanding the root cause of the problem is crucial before moving forward.
Establish Criteria: Determine the criteria that will guide your decision. These criteria could include cost, time, resources, impact on stakeholders, and alignment with organizational goals.
Consider Alternatives: Generate a list of possible solutions. Encourage input from your team to ensure you have a comprehensive view of the options available.
Identify the Best Alternative: Evaluate the alternatives against your established criteria. Consider the pros and cons of each option.
Develop and Implement a Plan of Action: Once you have selected the best alternative, develop a clear plan for implementation. Assign tasks, set deadlines, and ensure that all stakeholders are informed.
Evaluate the Solution: After implementation, assess the outcome of your decision. Did it solve the problem? What can you learn from the process? If necessary, make adjustments to the solution you've implemented. Use this evaluation to inform future decisions.
Be Proactive in Your Decision-Making
Proactive decision-making involves anticipating potential challenges and making choices that align with long-term goals. This approach requires a forward-thinking mindset and a thorough understanding of the broader context in which you operate. One way to be proactive is by establishing routines and habits that support your decision-making process.
The ability to make sound decisions is a prerequisite for your team's success and your growth as a leader.
To give a personal example, I love Oreos. I also have no self control around them. If I find a package of Oreos in my cupboard, I'm going to eat an entire row of cookies in one sitting. It's not a possibility, it's an inevitability. So to take care of my health, when I go to the store I just don't buy Oreos. If I don't have them in the house, I can't be tempted to eat them. The decision I make at the grocery store is my first line of defense, eliminating the later struggle at home.
Consider your "first line of defense" in decision-making. Just like my choices at the grocery store determine the quality of my diet for the week, each decision you make sets the stage for the future, closing off some options and opening others. By making thoughtful, strategic decisions early on, you create a foundation for sustained success. Taking the time for regular reflection and planning sessions can help you stay ahead of potential issues and make more informed choices.
Foster a Culture of Collaboration and Feedback
In 1999, Microsoft organized a chess game known as Kasparov vs the World as part of a marketing campaign to demonstrate the power of the internet and their products. Garry Kasparov, the world chess champion and widely regarded as the best chess player in history, faced off against the "World" team, an open coalition where anyone with internet access could vote on which move to make. After 24 hours, the move with the most votes would be played.
The outcome was a game still regarded as one of the best ever played. Kasparov himself called it the "greatest game in the history of chess" and stated that he spent more energy on it than any other single game in his career, including world championship matches.
What makes this so remarkable is that the World team was composed of players of all skill levels, yet managed to play a strong game despite 2.4% of the votes being for illegal moves at one point. How was such a disparate team able to play such a strong game? The key to this success was Irena Krush. Although she was a much weaker player than Kasparov, Krush proved to be excellent at collecting, organizing, and presenting possible moves.
Effective decision-making is not done in isolation. Gathering more ideas and perspectives leads to better decisions than any single person can make on their own.
Krush spent considerable time on the game forum, extracting valuable insights from the myriad commenters. By building a network of skilled players, including grandmasters, and creating a publicly accessible analysis tree that displayed possible moves and their justifications, she helped focus the team's efforts. This tool prevented wasted time on poor strategies and provided a clear reference for decision-making.
As the game progressed, Krush’s recommendations became central to the World Team’s strategy. She suggested an innovative move on the tenth turn, praised by Kasparov, which epitomized her ability to make impactful decisions. By synthesizing diverse viewpoints and channeling the best ideas through her, Krush maximized the team's collective strength. This coordination and integration of feedback allowed the World Team to perform at a level comparable to Kasparov, demonstrating the power of collaboration and well-organized feedback in achieving superior decision-making.
I share this story to emphasize that effective decision-making is not done in isolation. Gathering more ideas and perspectives leads to better decisions than any single person can make on their own. Involve your team in the decision-making process when possible. Collaboration enhances the quality of decisions and ensures that different viewpoints are considered. Work hard to create an environment where team members feel comfortable sharing their insights and feedback.
Encourage open communication and regular check-ins to stay informed about the challenges and opportunities your team is facing. Use these interactions to gather input and test your assumptions. Remember that the best decisions are often the result of collective intelligence.
Balancing Speed and Deliberation
One of the biggest challenges in decision-making is balancing the need for speed with the need for accuracy. In most businesses, delays can lead to inefficiencies and missed opportunities, while hasty decisions can result in costly errors. The key is to strike a balance where you can make timely decisions without compromising on quality.
New managers often struggle with finding this balance between making decisions quickly and taking the time to deliberate. While Type 1 decisions require careful consideration, Type 2 decisions can and should be made swiftly to maintain momentum and agility. Here are some practical strategies to help you achieve this balance:
Categorization: Classify decisions as Type 1 or Type 2 to determine the appropriate level of scrutiny and speed. This helps in identifying which decisions need thorough analysis and which can be made quickly.
Set Clear Deadlines: For each decision, establish a timeline that reflects its urgency and importance. This helps prevent analysis paralysis and ensures timely action.
Delegation: Empower your team to make Type 2 decisions, reserving your involvement for Type 1 decisions and critical oversight. Delegating decision-making not only speeds up the process but also develops your team’s skills and confidence.
Data Utilization: Leverage data and analytics to inform your decisions. Real-time data can significantly enhance the speed and accuracy of your choices. Make sure you have enough information to make an informed decision, but avoid the trap of overanalyzing. As Jeff Bezos suggests, if you have 70% of the information you wished you had, you have enough to make the decision.
Trust Your Instincts: While data and analysis are crucial, don’t underestimate the value of your intuition and experience. Trusting your gut can be particularly useful in situations where time is of the essence.
Feedback Loops: Establish mechanisms for rapid feedback. This allows for quick course corrections and continuous improvement. Regular feedback helps in refining the decision-making process and adapting to new information or changes.
Evaluate and Learn from Your Decisions
Evaluation is a critical component of the decision-making process. After implementing a decision, take the time to assess its effectiveness. Did it achieve the desired outcome? What were the unforeseen consequences? How did it impact your team and stakeholders? Use this information to refine your decision-making skills and processes.
Evaluation is a critical component of the decision-making process. After implementing a decision, take the time to assess its effectiveness.
Continuous learning and improvement are hallmarks of great leaders. Embrace a growth mindset and view each decision as an opportunity to develop your leadership capabilities. Encourage your team to do the same by fostering a culture of continuous learning and feedback.
Summary
Effective decision-making is a skill that new managers must cultivate to lead successfully. By embracing the responsibility, using a structured framework, prioritizing decisions, being proactive, fostering collaboration, and continuously evaluating outcomes, you can make well-informed choices that drive your team and organization forward. Remember, the goal is not to avoid mistakes but to learn from them and improve continually. With practice and reflection, you will become more confident and adept at making decisions that lead to positive results.
As you navigate your leadership journey, keep these principles in mind and apply them consistently. Your ability to make sound decisions will not only enhance your effectiveness as a manager but also inspire confidence and trust in your team.
From Theory to Practice
Confidence in decision making requires experience, planning, and reflection. Here are some practical steps to help you get started:
Accept Imperfection: Understand that perfection is unattainable. Focus on making well-informed decisions rather than perfect ones.
Avoid Overcomplication: Simplify Type 2 decisions to maintain agility and momentum. These can always be reversed if necessary.
Follow the Steps: Use the DECIDE model or a similar framework to guide your decision-making process. Clearly define and document the criteria for evaluating options.
Involve Stakeholders: Gather input from relevant team members to ensure diverse perspectives are considered.
Plan Ahead: Schedule regular reflection and planning sessions to anticipate future challenges.
Review Outcomes: Regularly evaluate the results of your decisions to identify successes and areas for improvement.
Gather Feedback: Collect feedback from your team on the impact of decisions and use it to inform future choices.
Learn from Mistakes: Analyze mistakes to identify lessons and apply these learnings to future decisions.
Document Learnings: Keep a record of lessons learned from past decisions to guide future decision-making.
What decision-making strategies have been game-changers for you? Share your insights and experiences in the comments section.