Effective decision making can be a complicated process, which requires leaders and managers to gather all available and relevant facts and take account of the consequences of their decision on their team and organization. This TMA World guide has been prepared to assist leaders and managers in making the decisions that best benefit themselves, their team and their organization.

1. A Guide to Effective
Decision Making

2. Effective Decision
Making
When it comes to decision
making, it’s a simple truth that
not enough managers commit
a sufficient amount of time or
attention to how they
approach this crucial process.
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3. Effective Decision
Making
Ineffective decision making
can lead to numerous
problems and take up valuable
time and resources to correct.
At the very least, poor
decisions hamper performance
and achievement of the goals
set.
At worst, it can lead to the loss
of livelihoods — or even lives,
depending on the type of
business you’re involved in.
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4. 4
So what is the root
cause of this?
Not surprisingly –
there can be many
reasons.
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5. 5
Effective decision making

For some, it’s a question of procrastination. This tends to be
amplified when the decision to be made is a critical one with
significant consequences if things don’t go according to plan. For
others, it can be a question of going with your gut instinct as that’s
the way you’ve always approached it.

Another reason can be because a manager has weak prioritization
skills – not investing the time and effort required to gain all the
necessary information that will facilitate a good decision making
strategy.

Leadership style may also play a factor in the quality of a decision
made.

Do you delegate instead of direct?
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6. 6
Effective decision making

Do you direct when you should be taking a more consultative
approach and involving the relevant parties in the decision making
process?

Throw into the mix the need to consider the issue of ethics when
making decisions and you can see how many managers can stumble
into any one of the numerous potholes peppered in the road that
leads to successful decision making.
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7. 7
This begs the
question:
What does it take to
make good, sound
decisions?
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8. 8
Different decisions require different approaches!
First of all, when approaching the decision making process, it’s not one
size fits all.
A major challenge for even the most experienced of managers is acting
out of habit and going with what they are familiar with.
Effective managers know this and understand that different decisions
require different approaches.
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9. 9
Different decisions require different approaches!
Decisions come in all shapes and sizes; some are simple – others
more complex. Some decisions are required to be made in real time,
others are more strategic, longer-term plans.
However, the key point to note here is that the particular circumstances
surrounding a decision should guide the approach taken as much as is
feasibly possible.
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10. 10
Those different decision making approaches include:
Authoritarian
Hierarchical, top down
Consensus
Collaborate as a team to reach an agreement
Contingent
Triggers based upon facts
Democratic
Voting or polling methods, allowing the majority
vote to decide
Elected
Nominate a person or group to decide
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11. 11
Understanding and choosing the right approach will increase the
likelihood of the right decision being made.
Once this has been done, a manager needs to consider a process to put
in place. A suggested process for effective decision making involves:
Identifying the
Clearly defining
necessary roles
Gathering
the problem
Evaluating
information
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Identifying
alternative
solutions
information
systematically
Selecting the
Validating the
best solution
solution

12. 12
An ethical decision making
tool: IRIS
The IRIS tool is a robust
means of asking a manager to
analyze and consider all angles
of an issue rather than solely
considering what is right or
wrong.
When applying IRIS, a
manager is required to
scrutinize the issue at hand,
asking:
What
could
do?
What
should
I do?
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What
must
I do?
When they have come to their decision a
further question needs to be answered:
Does the decision I have made still stand the test
of scrutiny?

13. 13
The following provides the considerations at each phase
Identify:

The participants: Who are
the key stakeholders?

The potential effects:
How is the key stakeholder
potentially affected?

The perspectives: What
are the competing
perceptions of the situation?

Pinpoint the issues: What
are the specific issues and
concerns?
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14. 14
The following provides the considerations at each phase
Reflect on:

The options: What are the
options and the associated
risks?

The objections: How will
stakeholders respond? What
objections may arise?

The outcomes: What are
the potential intended and
unintended consequences of
the options in terms of the
duration and severity of
their impact?

Then optimize: What
decision produces the
optimal result?
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15. 15
The following provides the considerations at each phase
Integrity of the decision
so that it is:

Compliant: Is the decision
fully compliant?

Consistent: Is the decision
consistent with the core
values of the organization?

Candid: Is the decision
open and transparent?

Clear: Is the decision
ethically comprehensible to
stakeholders?
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16. 16
The following provides the considerations at each phase
Scrutiny: Of the decision

Discern: What ‘message’
does the decision convey?

Distort: Can it be a
misunderstood or
misrepresented decision?

Durability: Will the
decision withstand scrutiny
today and in the future?

Diminish: Could the
decision diminish or
damage the reputation of
the organization?
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Quick Decision Making
Finally, let’s consider some of the
success factors behind quick
decision making
Don’t rush unnecessarily:

Assess if it’s both important and urgent
Have all necessary information:

If the information can be obtained quickly, then get it

If it cannot be obtained
• What worked before?
• Who has more experience?
Review your decision afterwards:

How can such a situation be prevented?

Can you make a checklist?

What went well, what did not?
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18. Effective Decision
Making
This article has addressed the
consequences of not getting
decision making right and
has presented some best
practice tips that will ensure
a greater chance of success.
Doing this will allow any
manager to avoid those
potholes and move forward
with greater confidence.
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19. About Us
19
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Written by Terence Brake, Director of Learning &
Innovation at TMA World.
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working. There you’ll find
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Above all we’d like to hear from you directly, so please don’t hesitate to send
any comments, questions or feedback to us at: enquiries@tmaworld.com
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20. 20
About Us
Visit
www.tmaworld.com/insights
to discover the latest
thinking from our experts
Above all we’d like to hear from you
directly, so please don’t hesitate to send
any comments, questions or feedback
to us at: enquiries@tmaworld.com
on global, collaborative,
cross-cultural and virtual
working.
Or visit our website:
www.tmaworld.com
© Transnational Management Associates Ltd. All Rights Reserved.