Decision Challenges

Not every decision is equally difficult, nor even difficult for the same reasons. Understanding exactly what is problematic in a given decision situation is the first step to making it easier. These are the major categories of decision challenges.

The situation may be in a state of rapid flux. Decisions made (no matter how good they are) are quickly rendered outdated or irrelevant. Perhaps the situation is unfamiliar to the decision-makers (new markets, new customers, new technologies, etc.). Or maybe the situation is ambiguous, with a variety of meanings or boundaries.

There may also be uncertainty about the decision process. Who has the authority. Who has the expertise. Who has the right to make inputs.

There is a penchant in business to mistake simplification for insight. It may be that the most insightful analysis will focus on a very few variables, but insisting on more than 3 bullet points in a slide will not guarantee wisdom ... only brevity.

In some decision situations, the major challenge is grappling with the actual complexity of the situation. Rather than assuming linear relationships, perhaps they are curvilinear! Rather than assuming simple causality, perhaps it is delayed or reciprocal or mediated.

In a group situation, complexity can become quickly overwhelming, but more so if the group is intolerant of complexity. Embracing the complexity may be the first step toward identifying the most significant leverage points. The only way to deal with complexity is to wade into it, not to force some misguided end run.

Conflict in a decision situation is quite common. If there were not differing opinions about the best path forward, we would probably not be considering a decision at all. Conflict can come from 3 different sources:

• Differing opinions - People see the world differently, even with similar backgrounds. Add in some diversity in gender, age, ethnicity, religion, or political orientation and you are practically guaranteed to have conflicting views.
• Genuine dilemmas - Sometimes the conflict is an inherent feature of the situation, whether people are willing to see it or not. We often feel like we have to decide between quality and cost, between speed to market and quality, between innovation and standardization, between centralized control and local customer intimacy. These are genuine dilemmas, expressing our commitment to two, equally valuable but incompatible goals. And if you are tempted to choose one or the other, that is a sure sign that you need to re-frame the situation!
• Political agendas - A decision situation also represents an opportunity for someone to advance their personal power, support an alliance, or undermine an enemy. For some, the political utility of a choice is greater than any concern for the substantive issues or the system consequences.

Any of these situations will mean greater conflict. A well designed decision process anticipates the most likely types of conflict and ensures it will be handled openly at the appropriate point in the flow.

We want decision-makers who are compassionate and humane, but not overly involved, or more responsive to personal meanings than the demands of the situation. The therapist making choices about how to manage a client is supposed to set aside their personal history and consider only the best interests of the client. The manager reflecting on how to work with a vendor is supposed to consider the best interests of the company, but we also want them to act respectfully and humanely (it's not only bad ethics to be ruthless, it's bad business as well).

So there is a tension between the decision-makers' objectivity, and the personal involvement that also directs their attention to the human side of the equation.

Some decisions just tear more than others; the consequences of the choice are more severe, more daunting. The severity can be traced back to any of the following:

• Irreversibility - Some decisions can be rescinded if they don't work (like returning a product that doesn't work as well as anticipated), while others are less flexible (like abandoning a satellite operation and leaving the region to competitors).
• Scale of impact - Some decisions affect a team, others impact the company. Some will change this quarter's results, while others will affect results for years.
• Degree of risk - Some decisions can be forgiven, while others will spell the end of a career (perhaps yours?!). Decisions are often pushed up the chain of command precisely because of the fear of being fired to making the wrong choice.
• Time pressure - Decisions can sometimes be made only after long and thorough deliberation; others have to be made TODAY! Without time to gather information, seek out advice, or test ideas with those impacted, even a simple decision can suddenly become severe

As with the other types of decision challenge, severity is often handled best when it is acknowledged early. And some process design options can be specifically targeted to mitigate the severity of the decision.