Decide & Deliver

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Decide & DeliverKNOW YOUR DECISION EFFECTIVENESS

2Five steps to improve decision effectiveness

01

Assess decision effectiveness and organizational health

02

Identify the critical decisions

03

Set up individual decisions for success

04

Align organization to support decisions

05 Embed decision capabilities and sustain results

3What is Decision EffectivenessDecision Score

Quality

Speed

Yield

Effort

Decision = Performance

Quality, Speed and Yield reinforce one

another

Effort is a dragThere are few trade-

offs

Remember

There is always room for improvement

4Where are the decision barriers

Structural sclerosis

Decision ambiguity

Process paralysis

Data dysfunction

Misaligned measures

Blurred vision

Consensus overdose

Talent deficiency

Behavior breakdown

Performance anemia

5How to tackle Organization decision challenge

Decision Score Card

• It will tell how well or poorly you’re doing on decisions. It includes assessment of all the elements of decision effectiveness (decision quality, speed, yield)

Organizational Score cards

• It shows the element of the organization that may be hindering people making decisions quickly and implementing them effectively

6The Decision scorecard “quick test”

When making critical decisions, we choose the right course of action:4 - > 75% of the time3 – 51 – 75% of the time2 – 26 – 50 % of the time1 - <= 25% of the time

1 2 3 4Quality - Q

We make critical decisions:4 – Much faster than competitors3 – Somewhat faster than competitors2 – Somewhat slower than competitors1 - Much slower than competitors

Speed - S

We execute critical decisions as intended:4 - > 75% of the time3 – 51 – 75% of the time2 – 26 – 50 % of the time1 - <= 25% of the time

Yield - Y

In making and executing critical decisions:4 – We put in exactly right kind of effort3 – We put in some what too much/ too little vs. amount we should2 – We put in way too much/ nowhere near effort vs. amount we should1 – We are off the charts

Effort - E

> 25 = Top quartile – You’re doing great, keep it up21-25 = Second quartile – Pretty good, but could be great16-20 = Third quartile – Worse than 50% of companies, time to ACT!15 or less = Bottom quartile – Major decision reboot required!

Total Score[ Q * S * Y * (E/4)] _ _ _ _ _ _ _ _

1 2 3 4

1 2 3 4

1 2 3 4

Instruction Read each question and check the score

that corresponds to the answer that bests fits your organization

To get your total score, multiply the first 3 scores together, Then multiply that result by the Effort score divided by 4

For example, if you circle 3,4,2,3, you would calculate your total as 3*4*2*[3/4] = 18

Copyright 2010 Bain % Company, Inc. No rights reserved

7Decision scorecard ”read out” example

Quality - Q

Speed - S

Yield - Y

Effort - E

Low- quality decisions

Decision speed slower than competitors’

Poor execution of decisions

Too much / too little effort

High- quality decisions

Decision speed faster than competitors’

Strong execution of decisions

Exactly right amount of effort

1 2 3 4

Top quartile

> 25

Second quartile

21-25

Third quartile

16-20

Bottom quartile

15 or less

Total score versus

benchmark

Total Score (decisions)

Multiply Q * S * Y * E/4 = 18

8Organization scorecard “quick test”

Structure

Roles

Processes

Information

Measures and incentives

Decision style

People

Behavior

Culture

Our structure helps, rather than hinders, the decision most critical to our success

Individuals are clear on their roles and accountabilities in our most critical decisions

Our processes are designed to produce effective, timely decisions & action

The people in critical decision roles have the information they need when & how they need

Our measures and incentives focus people on making and executing effective decisions

We make decision in style that is effective ; e.g. a style that appropriately balances inclusiveness with momentum

We put our best people in the jobs where they can have the biggest decisions impact

Our leaders at all levels consistently demonstrate effective decisions behaviors

Our culture reinforce prompt, effective decisions and action throughput the organization

1 2 3 4

1 2 3 4

1 2 3 4

1 2 3 4

1 2 3 4

1 2 3 4

1 2 3 4

1 2 3 4

1 2 3 4

Instruction Read each question and

check the score that matches your level of agreement/disagreement with the statement

1= Strongly disagree , 2= Disagree more than agree , 3= Agree more than disagree, 4= Strongly agree

To get your total score, add up your individual score

> 35 = Top quartile – You’re doing great, keep it up21-35 = Second quartile – Good but room for improvement16-20 = Third quartile – Organization is serious barrier to decisions15 or less = Fourth quartile – Major organization transformation required

Total Score[Add all scores] _ _ _ _ _ _ _ _ (Min = 10, Max = 40)


9Organization score card ”read-out” example

StructureStructural sclerosis

Blurred vision

1 2 3 4

Top quartile

> 35

Second quartile

31-35

Third quartile

26-30

Bottom quartile

10 - 25

Total score versus

benchmark

Total Score (organization)

Add all scores = 27

Decision ambiguity

ProcessParalysis

Roles

Processes

Information

Data dysfunction

Measure & incentives

Misaligned measures

Priorities

Decision style

Consensus overdose

People Talent deficiency

BehaviorsBehavior breakdown

Culture Performance anemia

Structural alignment

Decision role clarity

Productive processes

Effective information

Measures that matter

Clear vision

Effective decision style

Well deployed talent

Role model Behavior

Performance passion

10Why some decisions need more management attention?

Complexity

• Decision involving many stakeholders or complex processes with multiple hands-off may require a lot of attention and effort to get right

Degree of change

• If a decision is likely to be affected by a proposed change, such as a new organizational structure, those involved will need to know how it is supposed to work in the future

Scope for improvement

• A decision that is not working probably needs more attention than that’s going well

Utility as pilot

• Some decisions can be set as Pilot for improving decision effectiveness

11Decision X- ray “snapshot”Decision: [write decision here]

Decisioneffectiveness

4 – Strongly Agree3 - Agree2 - Disagree1 - Strongly disagree

4- Much faster3 – Somewhat faster2 – Somewhat slower1 - Much Slower

4 – Strongly Agree3 - Agree2 - Disagree1 - Strongly disagree

4 – Exactly the right amount3 – A bit too much/little2 – Way too much/little1 – Off the charts

QualityIn retrospect, we made the right

decision:

SpeedRelative to competitors, we

made the decision:

YieldWe executed the decision as

intended:

EffortThe level of effort we applied

was:

Organization strengths / barriersRating Comments

4- Strongly agree; 3- Agree; 2 – Disagree ; 1 – Strongly disagree

• Our structure facilitated making and executing the decision well and quickly with the right effort

• Decision roles were clear and appropriate

• We used a robust decision process

• We had the right information at the right time

• People’s objective and incentive reinforced the right decision and action

• Participant had the right context to make and execute the decision

• We used an appropriate decision style

• We had the right skills and talent in right decision roles

• Participant demonstrated good decision behaviors

• Our culture reinforced making and executing the decision well


Instruction Select a decision

to X-ray Rate the

decision on quality, speed, yield & effort

Rate your level of agreement with each statement on organizational levers and note comments to bring your score to life

12Decision X-ray “day in the life”Decision: [write decision here]

Process Month 1 Month x Month y Month z

Group or person 1

Group or person 2

Group or person 3

Group or person x

Group or person y

Group or person z

Step 1

Step 2

Step 3

Step 4

Step 5

Step 6

Step 7 Step 8

Step 9

Decision

Decision

Decision

Implementation

Issue 2(e.g. revisiting decision leads to unnecessary loops)

Issue 1(e.g. unclear criteria lead to rework in input Issue 3 9e.g. follow up with

key group late in process sets back timing

Issue 4 (e.g. late engagement with implementer leads to last minute changes / delay

Instruction Sketch out

the basic process steps for how the decision works today

Highlight issues and disconnects in callouts, reflecting on un necessary loops, process disconnects and alignments issues.

13Clarifying the “what-who-how-when” to make critical decisions hum

What?• Define the decision we are actually trying to

make• Frame the decision in an appropriate way• Split the decision into sub decisions if

necessary

Who?

• Clarify up front who will play what role in each decision 9e.g., decision maker, recommender.

When?• Clarify timelines for decision and execution

and key milestones• Create a decision calendar for ongoing,

interconnected decision

How?• Install structured decision approach• Design and specify:

- interaction- Critical meeting- Closure and commitment- Feedback loop

14Tips for SuccessHigh performing organization have developed techniques for setting clear guidelines on what Decision they are trying to make

Start any discussion on decisions with a reminder of what you’re trying to decide Start every meeting with a single statement “ The purpose of this

meeting is to inform you about X, to discuss Y and to decide on Z

Frame the decision in reverse Instead of asking is it profitable to bid at a particular price, Ask is it

non-profitable to bid at a particular price

Make the decision explicit – and check to see if you are missing any parts of the decision

15RAPID ®, a practical tool for decision roles

Input Agree

Recommend

Perform

DecideMake final decision:

"Commit the organization

to action”

Recommend a decision or an action

Formally agree on a recommendation;

must be consulted, should not be

ignored

Be accountable for performing a decision once made

Provide input to a recommendation; must be consulted, may be ignored

The acronym RAPID – reflect the primary roles in any decision

Ensure the only one person has the D Limit the A roles & ensure that sign-offs is on recommendation, not on the decision Let key players know their exact goals Don’t underestimate the – perform role When necessary be explicit about who will decide RAPID roles

16The how – elements of a best-practice decision process

Structured decision approach

• Conscious approach to decision: set criteria, consider relevant facts, develop alternatives and makes a clear decision weighing all of these

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Clear Steps & sequence

• Logical steps and sequence for how decision roles and process will work in practice

• Clear guidelines on how and when to escalate and when not to2

Meeting & Committee

• Key meetings required for the decision specified, with purpose and participants clarified up front

• Appropriate committee reviews3

Closure & Commitment

• Final decision communicated to key parties• Resources allocated (people & money)• Execution plan in place(actions, accountabilities, milestones)

4

Feedback loops• On going review of execution progress to drive fast corrective action or

replicate successes5

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Use a structured decision approach

Agree on a criteriaGather all relevant factsAlways ensure more than one alternative

Establish guidelines for steps & sequence (including escalation)

Defines path for escalationNever shoot the messengerBe aware of maverick escalations

Design meeting around specific decisions

Distribute meeting material in advanceMark them as• Information purpose only• For discussion & debate• Decision & action

Allocate required resourcesRebalance team to assist in executionLet people clearly know what decision is made

Close and commit

Act quickly on feedbackDevise feedback loopsReplicate successes

Establish feedback loops

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18Tips for Success

Separate the decision from the discussion of choices First consider relevant facts and proposed alternatives, Discuss

whether facts are sufficient and all the right alternative are on the table

In separate session choose amongst the alternatives and plan mobilization for execution

Follow the rule of Seven for meetings Every person added to decision making group over seven reduces

decision effectiveness by 10%

Track the timing as well as the level of bottleneck resources to ensure effective execution

Top performing companies typically follow these practices:

19Decision centered versus traditional approach to organization

Traditional approach Decision – centered approach

HARD

Is our structure aligned with our strategy?

Does our structure support the decision most critical to creating value?

Who should report to whom? What are the specific roles and accountabilities for our critical decisions?

Are our core business processes effective and efficient?

Are our processes geared to produce effective, timely decisions and action?

So our information systems support our business objectives?

Do the people in key decision roles have the information they need when and how they need it ?

Is our compensation competitive with peers?

Do our performance objective and incentive focus people making the right decisions for the business?

SOFT

Do we have clear and compelling mission and vision?

Do people throughout our organization have the context they need to make and execute the decision they face?

Is our management style sufficiently inclusive?

Are our people clear on our preferred decision style (directive, participative, democratic, consensus)

Do we have an effective leadership team?

Do our leaders at all levels consistently demonstrate effective decision behaviors?

Do we have a high performance (sometime "customer-centric”) culture?

Does our culture reinforce prompt, effective decision making and action throughout the organization?

Are we winning the war for talent? Do we put our best people in the jobs where they can have the biggest impact on decisions?

20Embed decision capability

Building the foundation of effective decision Make decision effectiveness a priority

Align the top team and engage influential leaders early

Build commitment through hands- on experience

Ask the leader to co-create the plan

Creating and sustaining momentum Apply good decision disciplines to improve decision effectiveness

itself

Celebrate decision and execution success – and nurture grass root pull


Embed decision behaviors and capability Build new capability and skills

Develop a repeatable model that can be applied throughout the business

Use a “train a trainer” approach – and tailor training the training to the audience

Help people learn through experience

Share best practices

Walk the talk

Measure the Impact


Pitfalls to avoid Don’t start anything you’re not prepared to finish

Apply the tools to the difficult decisions, not just the easy ones

Don’t fudge the people issues

Cut bureaucracy – don’t‘ add to it

23Video from the creatorsStep 01

Step 02

Step 03

Step 04

Step 05

The authors

Decide & Deliver

Business

Transcript of Decide & Deliver