Good Decision-Making

Ultimately, our job as leaders boils down to a few things. Having a vision and strategy that is shared, understood, motivating and that inspires action. Creating a great culture. Hiring and supporting great people. And, maybe less obvious, creating an organization that’s good at making decisions.

It turns out that there’s a very high correlation between organizational effectiveness and the quality of organizational decision-making. And the best, most actionable article I’ve found on understanding the quality of an organization’s decision-making says it’s function of:

  • Speed: how fast do you decide?
  • Effort: how much work goes in to making decisions?
  • Quality: how good are the decisions?
  • Yield: how well do you turn decisions into actions?

As someone who’s transitioned from the non-profit to the for-profit sector, my experience is that non-profit organizations typically decide more slowly and with more effort, all without resulting in consistently high(er) quality / higher yield decisions.

I think this is a function of the more multi-faceted accountability in the non-profit world (multiple criteria for success, multiple stakeholders). This in turn leads to slow(er), high(er)-effort decision-making which begets a culture that accepts slower, higher-effort decision-making, even when it’s not always needed.

This is not to say that faster is always better: speed is not useful if we make lots of quick, poor decisions.

Indeed, one of our jobs as leaders is to consistently walk the line of always moving quickly while managing to get the right input from the right people, so that decisions are (mostly) high quality.

The nuance is that how we decide develops into a cultural norm: people watch how decisions get made, learn that behavior by osmosis, and replicate whatever your decision-making culture is.

For example, is it OK in your organization to:

  • Make decisions without formal authority?
  • Change a decision after it’s been made? After the deadline?
  • Leave a decision-making meeting without a decision getting made?
  • Have a more junior person be the decision-making in a meeting with someone more senior?
  • Make a decision that is not documented?
  • Make a decision that doesn’t turn into action?
  • Be unclear who the decision-maker is on a given topic?
  • Have one decision-maker?
  • Have many decision-makers?

While there’s no right answer to any of these questions, my view is that organizational growth creates complexity, and complexity slows things down and allows people to hide.

That’s why most of the time, most organizations would benefit from faster decisions being made by fewer people who take more ownership around being “the decider.”

One helpful way to jumpstart these conversations is by starting to frame decisions as either Type 1 (irreversible, make them very deliberately) or Type 2 (reversible, prioritize speed). You’ll quickly discover that most decisions are Type 2, and that just might give you the freedom to move faster on them.

One final thought: one of the easiest ways to lead, no matter where you sit in an organization, is by choosing, today, to make more decisions without triple-checking if it’s OK. The worst thing that will happen is that you’ll discover that deciding really isn’t allowed (which is important information). The best thing is that more people will start turning to you to decide more things, because you had the courage to step up in the first place.

Crisis Speed

There was a moment, not long after we incorporated 60 Decibels, when I was sitting in the office with my head of operations. We had to decide which of a number of office spaces we had seen was right for us, and what lease to sign.  We discussed it for about five minutes, agreed what we wanted to do…and then we both just stopped for a beat.

Both of us paused because it felt like we needed to check with someone else, to get an additional approval, to run it up the flagpole.

But in a startup, blessedly, there is no flagpole.

Both of us got a bit giddy as we realized it was just up to us. When the surrounding silence made this abundantly clear, we confirmed our decision and moved on. That was the first of a thousand small decisions we made quickly.

She and I had both spent our careers in bigger organizations. We’d learned about things going slowly. It had been, slowly and surely, pounded in to us.

Of course things change in moments of crisis–like what we’re living through right now. When a crisis hits, we all move faster, because what’s happening externally is so big and so universally understood that no one will punish us for choosing to act.

The question that presents itself is: why only in a crisis?

One of the many things we are all learning is that we can up our game when we have to: we can make important decisions and own the consequences.

The people whose job it is to make sure everything is just right have other things to worry about right now. Or they’ve consciously changed their standard, tilting far in favor of action and away from methodically checking off all the boxes.

This has happened because we all understand the cost of inaction in a crisis.

What we shouldn’t forget, not just today but also in a calmer tomorrow, is that the cost of inaction is always high.

Many of us have learned that we can’t get blamed for doing nothing. But the much more important lesson is that inaction and passing the buck are nearly always the most expensive thing–not just because of the things we don’t get done, but because of the culture we build and the lessons we teach our best people:

That’s it’s not really up to them to decide.

That they’re not really on the hook.

That we don’t, when you boil it all down, trust them to act in our best interest.

What could be more damaging to the cultures we aim to build?