The new imperative for organisational success will be 'hyper-decision making'. Gain insights into executive research around decision making; the concept of 'optimal' decision; the costs of lost opportunity associated with decision making; the factors that determine your organisation's 'decision intelligence quotient'; the drivers of 'risk'; what a systematic, integrated and comprehensive decision making process looks like; and more! Enjoy!

1. The New Strategic Imperative forThe New Strategic Imperative for
Organisational Success:Organisational Success:
Hyper-Decision MakingHyper-Decision Making

2. ““Nothing is more difficult andNothing is more difficult and
therefore more precious thantherefore more precious than
to be able to decide”to be able to decide”
Napoleon BonaparteNapoleon Bonaparte

3. Whether You Like it of Not, You are CompetingWhether You Like it of Not, You are Competing
for the Future and the Clock is Ticking!for the Future and the Clock is Ticking!
Your Organisation’s Future may well depend
on the choices you make now!

4. Some Truths about Decision MakingSome Truths about Decision Making

5. 5
.
Some Truths about Decision Making:Some Truths about Decision Making:
Research FindingsResearch Findings
Approximately 86% of organizations do not
consistently follow a formal approach to ensuring
sound decisions.
Source: Decision Intelligence Institute International

6. 6
 What is the best organisational culture to support consistent, effective and
efficient decision making?
 How should you assess the quality of a decision?
 What are the people competencies most critical to supporting decision making
success at all levels?
 What is the ideal infrastructure to enhance the speed and quality of decision
making?
 What does a ‘best practise’ decision making process look like?
 How do ensure it is systematic, integrated and comprehensive?
 What is the ideal ‘sensing system’ for your organisation – the one that will
deliver, consistently, the best quality information and the right information
when you need it for any decision situation?
 How does lack of alignment with your organisation’s purpose and vision reduce
the ‘optimality’ and the ultimate impact of any decision you make?
 What are the unique factors about your organisation’s context and/or
operating environment that will most heavily influence your decision making
success or failure – making it unique and different from any other organisation?
 Is decision-making in your organisation at least a ‘zero-sum’ game?
What this Research Does Not Tell YouWhat this Research Does Not Tell You

7. Why you need an excellentWhy you need an excellent ‘Sensing‘Sensing
System’System’ to ensure the right actionableto ensure the right actionable
information is available when you needinformation is available when you need
it to drive the best decisions consistently!it to drive the best decisions consistently!

8. The Changing Requirements for
Information
Rapidly Changing Stable
Stable
Rapidly
Changing
MarketConditions
(customers&competition) Technology
Where is your organisation today? How fast is your operating and market environment
changing? You are competing for the future. The clock is ticking. How do you ensure
you are a ‘winner’ not just an ‘also ran’? Information is one of the keys to success!
Increased need for
“real” time
data & information
•Customer
•Market
•Competition
© Dr. Ted Marra

9. Decision Science is Really Quite SimpleDecision Science is Really Quite Simple
As there are only two DecisionsAs there are only two Decisions
that can ever be made!that can ever be made!

10. 10
 You can ‘do nothing’ or ‘do something’ – that’s it!
 The issue is that both have consequences!
 If you ‘do nothing’ what are the risks and consequences?
 If you ‘do something’ what will the consequences be – the ripple
effect?
 Now - as well as in the future? That is, will your decision now
preclude you from doing something important for the
organisation in the future?
 To complicate matters, when you ‘do something’ there are always
‘multiple’ actions you can take!
 Which one will be closest to being optimal and how do you assess the
impact or gauge the outcome? Do you have the right analytics to
support you? Or are you using ‘gut feel’?
 How do you ensure the best outcome for your organisation?
 How and how well do you assess or forecast potential unintended
consequences?
Decision Science is Simple!Decision Science is Simple!

11. Critical Issues to ConsiderCritical Issues to Consider

12. 12
 Decision making is NOT an exact science. However, the good news is
that there are methodologies and tools which can significantly
improve your odds of getting it right – first time, every time!
 Plato once said that ‘Incomplete information is worthless’. The fact of the
matter is that decisions are made by the millions everyday based upon
incomplete information!
 However, what is true is that with the dynamic and turbulent operating
environments in which most organisations find themselves today,
incomplete information is only one of the decision related issues they face.
The others include, but are not limited to:
 The need for faster decisions – to be more agile
 Growing complexity – more variables/parameters to consider which can influence
the decision made as well as the outcome achieved
 Ever greater risk or uncertainty as the gap between the information needed for the
optimal decision and the information available – both in terms of quality and
quantity - is growing
 Knowledge can become obsolete more quickly which is why continuous learning is
key
 Accurately determining the desired outcome or how to achieve it is a
nontrivial exercise – it cannot be based upon guesswork but must now
include hard and most appropriate analytics
.
Critical Issues to ConsiderCritical Issues to Consider

13. 13
 So, just how important is effective and efficient decision making to the future
success of your business? (scale of 1-10)
 What are those strategically important positions within the organisation where you need
to make the best talent to make the best decisions possible on a consistent daily or
weekly basis?
 What is the economic value of the decisions your organisation makes every week
or quarter?
 The costs associated with the decision?
 The benefits (impact) of the decisions?
 Are you breaking even?
 What do you do e.g., actions do you normally take) when the decision made does
not have the desired impact?
 What is the cost of a bad decision – tangible as well as intangible?
 What if you could increase the % of ‘optimal’ decisions made in your organisation
from where it is now to 80%+ on a consistent basis, would that have value?
 The Decision Intelligence Institute International estimates that it is not unusual for 40-
50% of decisions to be sub-optimal and/or to fail to meet their expected level of impact
 The sooner you can make the best – the ‘right’ decision for the organisation, the
sooner you can start reaping the benefits!
 Sometimes, ‘small moves smartly made’ yields greater results!
.
Critical Issues to ConsiderCritical Issues to Consider
continuedcontinued

14. The Critical Success FactorsThe Critical Success Factors
Behind Effective Decision MakingBehind Effective Decision Making

15. 15
.
The Critical Success FactorsThe Critical Success Factors
Behind Effective Decision MakingBehind Effective Decision Making
IT / Sensing System &
Analytic Capability
Culture: Values
/beliefs & Practises
Unique
Business
Context
Alignment
with Purpose
& Vision
Infrastructure
Based on Whitepaper By
Dr. Ted Marra on Hyper-Decision Making
Decision Process:
Systematic Integrated
Comprehensive
Constraint Free

16. The Decision Making ProcessThe Decision Making Process
““High Level” ViewHigh Level” View

17. 17
.
The Decision Making ProcessThe Decision Making Process
“High Level” View“High Level” View
“Systematic, Integrated, Comprehensive”
Moving Toward Hyper-Decision Making
Decide**
Feedback Loop to Planning and
Future Decision Making and Execution
• = Identify, collect and analyse the right and most comprehensive data and information;
ensure that not only core decision factors but also other ‘influencing’ factors are considered;
include a rigorous evaluation (not just a ‘gut feel’) of the potential consequences of alternatives including
what would happen if only 50% of the desired impact occurred; the value created and/or delivered
and to whom; what if we did nothing?
** = Is the decision approaching optimality?
*** = Is the execution flawless?
**** = Are the right , best and most advanced analytical tools being utilised for assessment?
Decide**

18. The Truth About RiskThe Truth About Risk

19. 19
 Complexity
 Number of variables/parameters and an inability to be able to separate high impact variables from
low impact ones
 Inability to recognise inter-relationships/linkages
 Inability to understand ‘cause and effect’ relationships
 Incomplete information
 Dysfunctional, inappropriate ‘sensing system’ (Strategic Enterprise Information Architecture)
 Lack of integration of data sources and analytics
 ‘Sensing system’ is not comprehensive – critical pieces are missing
 Too much data and not enough actionable information which is needed to drive effective and
efficient decision making
 Questionable Information Quality such as:
 Timeliness
 Reliability
 Accuracy
 Failure to identify emerging trends or see patterns in the data soon enough
 Lack of anticipation or failure to be proactive
 Use of misleading or inappropriate indicators
 For example: market share being used as a surrogate measure of customer satisfaction
 Use of high level indicators which are ‘insensitive’ to changes
 For example: focus on ‘profitability’ rather than the ‘drivers’ of profitability such as customer
satisfaction, service quality or willingness to recommend
The ‘Drivers’ of RiskThe ‘Drivers’ of Risk

20. The 9 Areas for Potential ValueThe 9 Areas for Potential Value
Creation and Delivery as a Result ofCreation and Delivery as a Result of
the Decisions You Makethe Decisions You Make

21. Brand
Image/
Reputation
Process
Product
Service
Customer
Support
Technology
Information
The Stakeholder
Experience
People
The 9 Areas of Opportunity to CreateThe 9 Areas of Opportunity to Create
and Deliver Valueand Deliver Value
From a Book
By Dr. Marra
The Wisdom Chronicles: Competing to Win,
Volume I

22. The Four Signs of Decision DoomThe Four Signs of Decision Doom

23. 23
 Lack of clarity on the desired outcome
 Decision process is not systematic, integrated and comprehensive
 Failure to appropriately consider outside influences
 Decision process is not systematic, integrated and comprehensive
 No broad exploration of consequences – positive or
negative
 Lack of use of most appropriate advanced decision analytics and
their integration into the decision process
 Missing feedback loops
 Decision process is not systematic, integrated and comprehensive
The Four Signs of Decision DoomThe Four Signs of Decision Doom
Blog: Decision Intelligence Institute International
and comments from Dr. Marra

24. The Cost of Lost OpportunityThe Cost of Lost Opportunity

25. 25
 The Four ‘Drivers’ of the cost of lost of
opportunity:
 Timing – slow speed of decision making
 The ‘window of opportunity’ is missed
 Execution – flawed or flawless?
 Optimality of the decision – how far from the ideal
decision are you?
 Lack of a formal process - one which is not systematic,
integrated and comprehensive
The Cost of Lost OpportunityThe Cost of Lost Opportunity

26. 26
The Cost of Lost OpportunityThe Cost of Lost Opportunity
& How it can Work Against You& How it can Work Against You
0%
100%
Planned
Impact of
Decision
Impact lost due to slow decision making
Impact lost due to poor execution
Net impact of decision
Impact lost due to sub-optimal decision
Impact lost due to lack of having a systematic,
integrated, comprehensive approach

27. The Focus of Decision Making:The Focus of Decision Making:
Domain Decision InfrastructureDomain Decision Infrastructure
And Key Decision PositionsAnd Key Decision Positions

28. Decision
Action
Modified by Dr. Ted Marra, Informed Decisions
What we needto know
Desired
Outcomes
Our
Behaviours
Big Decisions are about the future! Big DataBig Decisions are about the future! Big Data
is about the Past – Steve Jobsis about the Past – Steve Jobs

29. The Focus of Decision MakingThe Focus of Decision Making
Larger, more complex decisions often intersect a number of domains within an organisation. In these cases it may be
appropriate to break or decompose the decision into smaller pieces – ‘small moves smartly made’ works well even
with so called ‘wicked problems’ (see Steve Tendon, ‘Hyper-Productivity’) as does ensuring involvement of those
most appropriate to the decision through Domain Decision Councils and their supporting SBITs (Strategic Business
Improvement Teams). This approach can not only speed the decision making process but improve the quality or
optimality of the decision and reduce the time requirements for senior executives. Often there is a logical sequence
that can be followed or elements that can be examined in parallel. Then the pieces can be brought together in a
collaborative meeting of all appropriate Domain Councils and their SBITs. Agility and resiliency must be maintained
as keys to competitiveness!
Operational
Excellence Domain
Council
Relationship
Mastery Domain
Council
Competitiveness and
Growth Domain
Council
Human Performance
Excellence Domain
Council
Key Decision

30. 30
 Over the years of practise, Dr. Marra has found that
forming at least four (4) key Domain Decision Councils each
supported by a cross-functional strategic business
improvement team of high potential individuals can not
only speed decision making significantly, but get you
closer to making an optimal decision – thereby minimising
the ‘cost of lost opportunity’
 The four Domain Decision Councils we recommend as a
starting point are:
 Operational Excellence Council
 Human Performance Excellence Council
 Relationship Mastery Council
 Competitiveness and Growth Council
The Value of a Domain DecisionThe Value of a Domain Decision
InfrastructureInfrastructure

31. 31
 As stated, each Council is supported by a Strategic Business
ImprovementTeam (SBIT)
 The members of the Council represent a subset of the
leadership team (management committee)
 They may NOT, however, always be the ‘usual suspects’.
 For example, the Human Performance Excellence Council may have the CIO
or CTO or CFO on it. The CEO is also assigned to a Council or possibly more
than one. Attendance at meetings is mandatory!
 The SBIT members also attend these meetings and in many cases make
presentations/lead discussions to share progress or other data and information
they have collected with the guidance of Council members to enhance the decision
making process and monitor its impact. Development of individuals in the SBIT’s is
also a prime objective – getting them ready to play larger roles in the organisation
 In addition to the decision making accountability of the Council and
involvement of the SBIT, these two groups should also bear
responsibility for helping to build the capability of the organisation in
the domain area consistent with the organisations Key Business
Objectives and strategies
The Value of a Domain DecisionThe Value of a Domain Decision
Infrastructure (continued)Infrastructure (continued)

32. An Example Relationship MasteryAn Example Relationship Mastery
Decision Domain Council StructureDecision Domain Council Structure
““The Customer Listening Post Team”The Customer Listening Post Team”
AT&T Universal Cards – A World-Class OrganisationAT&T Universal Cards – A World-Class Organisation

33. AT&T Universal Card Services
Management Led
Operations Feedback Strategies
Customer Expectation
Research
Direct Customer
Feedback
Process
Management
Selected Feedback Strategies
Data Service Examples
Customer Satisfier Survey
Customer Value Tree
Data Source Ex.
Cust. Satisfier Srvy.
Benchmarking
Performance
Research
Data Source Ex.
Commendations
Suggestions
Complaints
Non-contact Assoc.
Call Monitoring
Cust. Retention
ERC Feedback
Data Source Ex.
Cust. Contact
Standards
Cust. Contact
Monitoring
Call Type Trend
Data
See Item 5.2
Organisation Improvement Activities
Customer Listening Post Team
Long Term
Modification of Existing
Polities/Procedures
& Standards
Short Term
Integration of Cust.
Feedback into the
Strategic Planning
& Product/Service
Development Processes
(see Item 3.1
Customer Relationship Management Strategies
FeedbackLoop

34. Strategic Decision Making:Strategic Decision Making:
The Role of the Leadership TeamThe Role of the Leadership Team

35. Operational
Management
Execution &
Excellence
Sensing System
Strategic Thinking;
Competitiveness &
Growth;
Teamwork
Leadership
Dr. Ted Marra
Strategic Decision
Making
Create and Deliver Value;
Achieve Optimality;
Minimise the Cost
of Lost Opportunity
Business
Model/Context:
Purpose
Values
Principles of
Engagement
Renewal
Vision
Human Performance
Excellence
Operational Excellence
Relationship
Mastery
One View of the Strategic DecisionOne View of the Strategic Decision
Making DomainMaking Domain

36. Our greatest managerial failure rate comes in the step from middle to top
management. Most middle managers are doing essentially the same things
they did on their entrance jobs: controlling operations and fighting fires. In
contrast, the top manager’s primary function is to think. The criteria for
success at the top level bear little resemblance to the criteria for promotion
from middle management.
The new top manager, typically, has been promoted on the basis of his ability to
adapt successfully. But suddenly he’s so far away from the firing line that he
doesn’t know what to adapt to—so he fails. He may be an able man (or
woman), but nothing in his work experience has prepared him to think. He
hasn't the foggiest notion how one goes about making entrepreneurial or policy
decisions. That’s why the failure rate at the senior-management level is so high.
In my experience, two out of three men or women promoted to top
management don’t make it; they stay middle management. They aren’t
necessarily fired. Instead, they get put on the Executive Committee with a
bigger office, a bigger title, a bigger salary—and a higher nuisance value
because they have had no exposure to thinking!
Peter Drucker on the Matter of ‘Thinking’Peter Drucker on the Matter of ‘Thinking’
The Basis of Sound and Strategic Decision MakingThe Basis of Sound and Strategic Decision Making

37. The Concept of Optimal DecisionsThe Concept of Optimal Decisions

38. 38
 What is the cost of NOT making the optimal decision?
 What % of the decisions made by those individuals in the ‘key strategic
positions’ of your organisation are optimal?
 Are you at least playing a ‘zero-sum’ game?
 How do you know?
 Decision making in organisations covers a continuum from Level One
to Level Five where Level 5 is Hyper-Decision making
 Level One is characterised by such things as:
 People who tend to be indecisive; risk averse; or overconfident to the point of
recklessness or lack discipline; or are lone wolves – not team players
 A process which is ad hoc; focused on firefighting; takes the path of least
resistance; tends to be incremental
 There may be responsibility, but less accountability or sense of ownership;
sometimes the focus for decision making is blurred
 The IT systems and databases are fragmented; representing ‘islands’ of
information which are difficult to integrate; there is questionable data reliability
 HR systems do not recognise, reward or include in performance evaluation related
to key competencies of decision making
 The culture tends to be blame oriented; trying to find people doing something
wrong; draconian in nature
.
Optimal DecisionsOptimal Decisions

39. 39
 A decision will be considered ‘optimal’ if and only if #1 and at least 4
out of the remaining 7 criteria are met:
1. The decision either creates or delivers value or both to ensure stakeholders receive
benefits
2. The decision is executed flawlessly to ensure the desired and/or maximum
impact/outcome is achieved
3. The decision is in alignment with or consistent with the organisation’s purpose and
vision
4. All behaviours and practises in which the organisation engages throughout the
formulation and execution of the decision must be consistent with the values/beliefs of
the organisation
5. The decision must contribute to enhancing the competitiveness of the organisation
6. The decision must reflect/reinforce the organisation’s agility/resiliency
7. The ‘cost of lost opportunity’ is minimised
8. The decision is the right one for the business – better ensuring its long-term future
Another perspective: What decision will produce the greatest value for the most stakeholders
in the least time and with the least investment?
.
Optimal DecisionsOptimal Decisions

40. The Path to Hyper-Decision MakingThe Path to Hyper-Decision Making

41. 41
.
The Path toThe Path to
Hyper-DecisionHyper-Decision
MakingMaking
Determine the Decision Intelligence Quotient
of Your Organisation +Perform Gap Analysis
Identify your organisation’s key decision
making positions
Select an Organisational Domain for Design
and Development of Pilot ‘Sensing System’
Form an SBIT and Domain Council, Assign
Ownership + Provide Support as Required
Design and Develop a Pilot ‘Sensing System’
including Integration of Analytical Techniques
Link Pilot ‘Sensing System” to a Systematic,
Integrated, Comprehensive Decision Process
Assess, learn, innovate
Enhance agility and resiliency
Formulate and Execute Rollout Plan to other
Parts of the Organisation
Achieve Hyper-Decision Making
& Enhanced Competitiveness
Outcome: Superior Organisational Performance

42. A Brief Note onA Brief Note on
Agility and ResiliencyAgility and Resiliency

43. 43
Agility and ResiliencyAgility and Resiliency
Dr. Ted Marra’s ViewDr. Ted Marra’s View
Agility: ‘The capability of an organisation to identify, assess and act (e.g., decide
and execute) better and faster than competition’
Resiliency: ‘The capability of an organisation to anticipate/identify problems*,
assess their severity and take appropriate corrective action with appropriate sense of
urgency to eliminate them and prevent their reoccurrence therefore avoiding
unnecessary losses or collateral damage’
Recovery and a return to a normal performance trend is key. Focus is on minimising variability in the performance
trend. A documentation/audit trail is a requirement. A lessons learned session is a key to future success:
What could we have done better? What could we have done differently?
What could we have done faster? How could we have
developed a more innovative solution and what would that have been? What would the value have been?
Did we have the right people involved?
* This includes ‘wicked problems’ – see Steve Tendon, ‘Tame the Flow and Hyper-Productivity’

44. A Senior Executives WorldA Senior Executives World
Decision EnvironmentDecision Environment

46. Internal Organisational
Working Relationships , Key
Strategic Stakeholder
Relationships &
Segmentation
Cultural Profile
(e.g., behaviours
and practises) and
Evolution; Core
purpose;
Vision;
Mission
Agility, Resiliency
Strategic Information
Architecture,
Big Data & Data Mining,
Managing
Complexity
Renewal:
Innovation,
Adaptation;
Learning,
Operational
Excellence,
Efficiency
Human
Performance
Excellence
Leadership
System,
Profitable
Growth,
Competitiveness
Strategic Alignment &
Execution,
All One Team
Governance
Strategic Capability,
Value Creation and Delivery,
Assessing Organisational Potential,
Maintaining Competitive Advantage,
Long-term Sustainability*
© Dr. Ted Marra,
Informed Decisions
* Sustainability includes
key financial measures
A Look at the Exciting and Sometimes Frightening
World Of Today’s Executive and Their Decision Environment