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Effective Group Decision

Making
Paul Newton

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EFFECTIVE GROUP DECISION MAKING 3

Preface
This eBook describes seven popular techniques for making effective group
decisions. You can use these techniques in situations where you need to
call on others to make a decision.

It describes following techniques:

The Hoy-Tarter Model of Decision Making

Multi-Voting

The Modified Borda Count

Organizing Team Decision Making

Hartnetts CODM Model

Bains RAPID Framework

The Delphi Method

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4 EFFECTIVE GROUP DECISION MAKING

Table of Contents
Preface 3

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Introduction 5

The Hoy-Tarter Model of Decision Making 8

Multi-Voting 14

The Modified Borda Count 20

Organizing Team Decision Making 26

Hartnetts CODM Model 32

Bains RAPID Framework 38

The Delphi Method 44

Other Free Resources 50

References 51

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EFFECTIVE GROUP DECISION MAKING 5

Introduction
This eBook describes seven popular techniques that mangers use when
needing to make decisions involving others. As a manager you will be faced
with numerous situations where you are unable to make a decision on your
own and require input from others. This may be either because you lack all
of the information required or because you need to make sure that the
decision is acceptable to everyone involved.

The seven effective group decision-making techniques are:

1. The Hoy-Tarter Model of Decision Making

Making good decisions is a key to success in any organization


and the Hoy-Tarter Model of Decision Making makes sure that
only the right people are involved. Different decisions need
different inputs from a variety of people.

So the first step of this model is to think of each person in


reference to a four-quadrant matrix. This records two key
aspects of the decision in relation to the individual - how much
of a personal stake they have in the decision and how much
their expertise is needed to make a good decision.

2. Multi-Voting

Within organizations many difficult decisions are finalized by


asking those involved to vote on its acceptance or rejection.
These decisions are often complex and require a Multi-voting
method. This enables management to select the most popular
options and gain an understanding of the consensus of the
group.

This method is best suited to circumstances where selecting the


best idea from a list, as in the case of choosing a new

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6 EFFECTIVE GROUP DECISION MAKING

marketing venture, quickly reduces the list to a few concepts


that can be expanded.

3. The Modified Borda Count

Getting a group of people to arrive at a consensus can be a


challenge to sort through the noise in order to make decisive,
confident choice everyone can get behind. The Modified Borda
Count is a simple tool that allows your team to select from a
variety of options in relation to a specific problem.

4. Organizing Team Decision Making

When organizations are faced with a difficult or important


decision, they often have to involve some or all of the
management team to make the right choice. To organize this
type of decision-making process you will need to establish a
plan, do your best to avoid typical downfalls of group decision
making and define which options are to be discussed.

5. Hartnetts CODM Model

It is inevitable that when making decisions disagreements will


occur. But management must take into account all opinions
when coming to a decision, so that the best interests of the
organization are meet. Hartnetts CODM Model helps to identify
where the consensus of the group lies.

CODM stands for consensus-oriented decision making and its


seven steps have been designed for use within group settings.

6. Bains RAPID Framework

An essential element of decision-making is understanding who


has responsibility for the different aspects of the decision. It is

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EFFECTIVE GROUP DECISION MAKING 7

imperative that there is a clear distinction with regard to who is


in charge of what; otherwise there is a strong possibility that
confusion will reign.

Bains RAPID Framework is designed for key business


decisions where it is important to have the right people in the
right roles during the decision making process. The RAPID
acronym consists of five roles that exist within the decision
making process recommend, agree, perform, input and
decide.

7. The Delphi Method

Critical decisions within an organization often need your the


opinions and expertise of a number of your team members. The
Delphi Method enables you to leverage your organizations
knowledge and experience as part of the decision making
process.

This methodology helps you to reduce the negative impacts of


appeals to authority and group think, which potentially can be
harmful to group decision making.

Each of the following chapters contains a full description of each group


decision-making technique.

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The Hoy-Tarter Model of Decision Making


Originally created for use within a school system, the Hoy-Tarter Decision
Making Model can actually be applied in a number of different settings. If
you are the owner of manager of any kind of organization, you already know
just how difficult it can be to make decisions.

Specifically, it can be hard to decide how to make those decisions, in terms


of who you should include, what you should consider in the process, and
more. Making good decisions is a key to success in business, but you can
only make good decisions if you have an appropriate process in place.

Hoy-Tarter Different Requires Skills Not


Model Decisions Expertise of Required

DIU

VSW
Decision A
Defines HFG
the 'Who'
in terms of PJQ
people
needed for

HFG
Decision B JKL

In this model, the main goal is to figure out exactly who should be included
in the decision making process. Different decisions are going to require
different inputs from various people; so determining who should be included
in making the decision (and who should be left out) is a key step that should
not to be overlooked.

Including the wrong people, or failing to include the right people, is a


mistake that can have serious consequences.

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The Matrix

The first step in the process of using this model is to think about each of
your team members in reference to a four-quadrant matrix that will help you
determine whether or not each person should be included. Two questions
are used, each with a yes or no answer, to form this matrix.

On one side of the matrix is the question of how much of a personal stake
each team member has in the decision that needs to be made.

Does this decision matter to the individual, or it is something that


does not affect them in a significant way?

You are going to answer this with a yes or no yes if the decision does
affect the team member, and no if it does not.

Does it matter or significantly affect the individual?


Hoy-Tarter
Model Yes No
Does the individual have a skill / expertise

Yes
that is needed?

No

On the other side of the matrix is the question of expertise.

Does the team member in question have a particular skill set or


expertise that is going to help you make a good decision?

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Again, here, it is a yes or no answer that is going to help you place the team
member inside one of the four quadrants. You will answer yes if a particular
team member possesses expertise that you feel would be helpful, while a
no answer is indicative of someone who is not bringing much to the table in
terms of experience or knowledge (with regard to this specific decision).

The Four Options

Obviously, when you have two questions with two potential answers each,
you will have four possibilities for each team member that you evaluate as
part of this process. Those four outcomes are as follows.

Expertise Yes, Personal Stake Yes. If the team member


receives a yes response for both questions, they should almost
certainly be included in the decision making process.

Personal
Must be fully
Expertise=Yes involved in this
Stake=Yes
decision

They are going to bring expertise that should be helpful in the


process of making your decision, and they are going to work hard
on the problem because they have a personal stake in the
outcome. This is exactly the kind of person that you will want to
have working for you when trying to make an important decision,
so it is obvious that they should be included.

Expertise No, Personal Stake Yes. This is a person who


should be considered for a marginal role in the decision making
process. On one hand, they dont really have the expertise to help
you make the right choice from a technical perspective. However,
on the other hand, they are interested in the outcome and will
likely work hard to steer the company in the right direction.

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Expertise= Personal Needs to play a key


No Stake=Yes role in this decision

While this is likely not the kind of person that you would want to
have playing a significant role in the decision making process,
they may be considered for a partial role to help you come to the
right conclusion. This person may be especially useful if you
already have a team made up of people with plenty of expertise
but minimal personal stake in the matter.

Expertise Yes, Personal Stake No. This is another category


of individual who should be considered, but only needs to be
included if their expertise is something that can make a big imprint
on the decision making process. Do they have knowledge and
experience that doesnt exist otherwise on your team?

Involve when 'their'


Personal
Expertise=Yes
Stake=No expertise is required in
this decision process

If so, they should absolutely be included in some form or fashion.


Otherwise, they may need to be left out, as their lack of a
personal stake is going to limit their motivation and drive on the
project.

Expertise No, Personal Stake No. It probably isnt a surprise


to find that this is a category of team member which should be left
out of the decision making process.

Expertise Personal Have NO role to play


=No Stake=No in this decision

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If they arent going to offer anything from an expertise standpoint,


and they dont have a personal stake in the decision, they really
have no business being involved. You dont want to unnecessarily
crowd the process with too many voices, so keep people like this
away from your meetings.

While there are more steps to this process that can be used, it is this initial
line of thinking that is particularly important for business managers and
owners. You want to make sure that your decisions are being made as
intelligently as possible, and a big part of working toward that goal is using
the right members of your team to help make the choice.

Do you think you have been including the right people in your decision
making meetings, or are you going to make some changes in light of the
thinking that this model presents?

It is hard to move an organization into the future without making


smart decisions, and it is hard to make smart decisions without
having the right people working together with you on the project.

Use the Hoy-Tarter Model when applicable to pick out the right team
members for a decision making process and your choices should be better
for the effort.

Key Points

- Hoy-Tarter Decision Making Model is designed to help you decide


to what extent you should involve subordinates in the decision
making process.

- The first step in the process of using this model is to think about
each of your team members in reference to a four-quadrant matrix.

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Key Points cont.

- On one side of the matrix is the question Does this decision


matter to the individual in a significant way?

- On the other side of the matrix is the question Does the team
member have particular expertise that is going to help you make a
good decision?

- If the team member receives a yes response for both questions,


they should almost certainly be included in the decision making
process.

- Obviously, anyone without expertise or a personal stake should be


excluded.

- Where someone has either expertise or a personal stake, but not


both, then the decision is more nuanced.

- This model can help to give you a shortlist of who should be


included in the decision making process and to justify your choice
objectively.

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Multi-Voting
If you are making an organization decision that involves a number of people,
you may have to take a vote at some point in the process. But how do you
take that vote?

What if the topic at hand is not a simple for or against kind of


proposition?

If you would like to use voting to help make important organizational


decisions from time to time, you may wish to employ the popular Multi-
voting method.

With this method, you can select the most popular options from a list in
order to get an idea about the consensus of the group. Multi-voting is not
always the right solution when trying to make a decision, but it can be
perfect in specific circumstances.

is ideal
for where a list
Multi- making of options 1 or 2
must be
Voting decisions narrowed options
in the down to
situation

What Kind of Decisions?

Multi-voting is a smart choice when you need to narrow down a list. That is
the strength of this kind of decision making to take a large list and pare it
down to the options on the list that are the most popular among the group.

For instance, lets say your business needs to undertake new marketing
efforts in order to regain some lost market share. If that is the case, you may
find that your team has come up with a long list of ideas for new marketing

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EFFECTIVE GROUP DECISION MAKING 15

ventures. However, you likely wont be able to use them all, so you will need
to find a way to narrow down that list of ideas based on the consensus of
the group.

By using Multi-voting, you can quickly figure out which ideas are the most
popular in the eyes of the team, and you can get started with your new
marketing concepts right away.

First Steps

If you would like to use the Multi-voting method, the first thing you need to
do is develop a list of ideas that are going to be the subject of your vote. Ask
the team that is working on this project to collaborate on a list. At first, you
can put any idea that is presented onto the list, but you will want to slightly
narrow down and clean up that list before it goes to the vote.

1st Phase - Ask team to brainstorm


Multi-Voting Preparing for potential ideas or
Voting resolutions

Clean list by rejecting Allow everyone to


This produces the
'impractical' discuss all items on
'agreed' list of options
suggestions 'cleaned' list

This is numbered & Voting starts once all


Final review of option
distributed amongst the concerns have been
list
team for addressed

If there are multiple ideas that are basically the same, for example, you can
bring those ideas together to consolidate the list. Before any vote can take
place, all team members should have the opportunity to ask questions about
the ideas on the list. It is important that everyone involved has a clear
understanding of what it is that is being voted upon.

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After a period of brainstorming and discussion has passed, a final list should
be assembled. This list can be as long or as short as is appropriate for the
situation. Once the team agrees on all of the points on the list, that list
should be numbered and distributed to everyone involved for a final review.
If there are no remaining questions or concerns about the list being used,
the process can move on to the actual vote.

Taking the Vote

Before taking the vote, you will want to decide on exactly how many votes
each individual is going to be given. Generally speaking, each person
should be allowed to vote for roughly 1/3rd of the ideas on the list.

Multi- Uses the 1/3 rule for 5 votes per person for a
Voting applying votes list of 15 items

So, given a list of 15 items, each person would be allowed to place five
votes (thus the name Multi-voting). Of course, you are free to alter the
number of votes allotted as you see fit, but the 1/3rd rule is a good place to
start.

With the number of votes decided, you will need to actually take the vote,
either by a show of hands or by secret ballot. As the vote progresses, you
will tally the votes for each idea until all votes have been cast and the
process is complete.

Once the votes are tallied, the results can be presented to the group
for discussion.

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How are the votes distributed? Are there a few ideas, which stand out from
the crowd, or are the votes evenly distributed from top to bottom? By talking
about the results of the vote as a group, you can quickly begin to interpret
the results.

Doing It Again

In the case of a particularly long list of ideas, you may wish to go through
this process a couple of times. For instance, imagine you have a list of 20
ideas that you are considering for your marketing initiatives. For the first
round, you may decide to give everyone six votes. Then, when that round is
complete, you will take the totals and eliminate the bottom ten ideas from
the list.

Multi-Voting
Process

Top-3 options are Final list has 20


winners options

3 votes assigned Each person has 6


per person votes

Ballot takes top-10


options to next vote

Now that you are down to ten ideas, the voting process will be repeated,
with only three votes allowed for each person during this second round.
When the second voting round is over, the top three or five ideas (or
however many you choose) may be declared the winners.

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It wont always be necessary to repeat a Multi-vote, but that is a good option


to have in mind if you are dealing with a big problem or have a surplus of
ideas coming from your team members.

The idea here of course is to take the temperature of your team in


order to figure out which are the most popular ideas on the table.

While it is possible to take a public vote, you may wish to complete your
Multi-vote by secret ballot in order to avoid any bias or peer pressure.

As a decision making model, Multi-voting is extremely simple and easy to


use. However, dont let that simplicity trick you into thinking that this model
is not a powerful way to make choices. A quick Multi-vote can help you to
accurately identify the ideas that your team is the most confident in taking
forward, and that information is extremely valuable to you as a manager.

It wont take long to go through a round or two of Multi-voting, and the


outcome just may have the power to change your organization going
forward.

Key Points

- Multi-voting makes it possible to take a vote when the topic at


hand is not a simple for or against proposition.

- It is ideal where there is a large list of options that needs to be


pared down to those that are the most popular among the group.

- The list of options should be drawn up by the group making the


decision; with similar options grouped together to make the
number of options manageable.

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Key Points cont.

- The number of votes given to each group member is variable but


us typically one third of the number of items on the list.

- By talking about the results of the vote as a group, you can quickly
begin to interpret the results.

- It can be a good idea to use this system iteratively, in order to


accurately identify the ideas that your team is the most confident in
taking forward.

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The Modified Borda Count


It is never easy to bring a group of people on consensus on any topic.
Opinions will always vary within your team, and while that variance is a
good thing in many ways, it can be a challenge to sort through the noise in
order to make decisive, confident choices that everyone can get behind.

When making
decisions with
your team use The Modified
Borda Count

If you are trying to make some important decisions about the future of your
organization with the help of your team, you may wish to employ the help of
a Modified Borda Count. This is a very simple tool that can be used to allow
your team to pick from a variety of options that have been discussed with
regard to a specific problem or initiative.

The Goal

It is one thing to successfully make a decision using the input of a large


group it is another thing entirely to have that group support the decision
that has been made.

The support of the group is a critical piece of the puzzle, as it is that


same group that is going to be tasked with putting the decision into
action.

By using a Modified Borda Count vote, you can instill confidence in your
team by helping them see that the winner was the most popular option
among the group as a whole. Even if the winning option was not actually the
preferred choice of some of the people in the group, they will hopefully at

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least be able to appreciate the popularity of the option as the group moves
forward.

Modified Borda Voters allocate a Tally up value


value to each score for each
Count process choice option

Define No. of Winner - has


Define problem
Ideas each voter
/issue highest score
can support

Remove duplicates Ensures team


Work with team to
create option list
& impractical support as decision is
options implemented

Building Your List

In order to use the Modified Borda Count method, you first need to have a
list of options that are going to be the subject of a vote. You can have as
many points as you would like on your list of options, but you should keep
the list to a reasonable length in order to avoid overwhelming your voters.

So where does this list come from? The team members, of course. Ask the
team to brainstorm a list of options that can be considered for vote in
advance of using the Modified Borda Count system.

For example, imagine that you are trying to find ways to cut costs in
your manufacturing process.

You will likely be able to find a long list of cost-cutting options when you
start to ask various members of your team, so have those individuals
contribute to a list that you can bring together for the vote.

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Once the ideas of all of your team members have been brought together,
you will need to do a little bit of clean up by combining duplicates and
eliminating ideas that simply arent practical. The results of your vote are
only going to be as helpful as the ideas on the list; so make sure plenty of
time and effort is put into developing a useful list of excellent idea.

Quality of Requires
sufficient time Creating the
Voting & effort being option list
Results put into

If there are any questions about one or more of the ideas on the list, be sure
to work through those questions before going any farther. There should be a
general agreement on the part of the team members that the list is
worthwhile and logical before going any farther.

Taking a Vote

When the list is finalized, you are going to have a set number of ideas up for
vote. For the purposes of this example, lets imagine that you have a total of
10 ideas, which have made the final cut. So, the ballot is going to include
ten ideas that can be chosen by those who have been given a vote.

However, when the time comes to vote, the team members are going to do
more than just place a check box next to their favorite option. Instead of just
voting for one item, or voting for a few items as in the case of a Multi-voting
system, you are going to have each voter assign points to their chosen
ideas. Before starting the vote, you will need to inform each individual how
many ideas they can support on their ballot.

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Voters in a
Highest value is given to
Modified Borda top idea
Count

Are told how many list e.g. In list 10 ideas only


ideas they can support support 5
Asked to allocate each of Top vote = 5
these choosen ideas a Next vote = 4
'value' Next vote = 3
Be honest in their Next vote = 2
selection Final vote = 1

So, each person will get to pick 5 of the 10 ideas. When choosing those five,
they are going to give each a point value from 1 to 5. Their favorite idea in
the entire list is going to get 5 points, the next favorite idea will get 4 points,
and on down the list until they assign their 5th choice with a single point. The
five ideas that they choose not to vote for will receive no points.

Tally It Up

Finishing off the use of a Modified Borda Count is simple just tally up the
points from the vote, and you will have a winner. Using a spreadsheet is the
best course of action for this task, as you will easily be able to reorder the
spreadsheet to put the highest point totals at the top after all of the ballots
have been included.

The options with the highest number of points will be the winners of
the vote.

You can use this system to identify a single winner, or you can use it to pick
out a few winners from a large field.

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Winner

Idea / Option with highest


score is the

Modified Borda
Count

To go back to our example regarding cost cutting measures for a


manufacturing process, you could use a Modified Borda Count to pick out
three cost cutting measures to explore. By using this method, you will know
what the top three options are in the eyes of your team, and you will be able
to move forward this those ideas.

It shouldnt take long to go through the process of taking a Modified Borda


Count, but you can learn plenty from the scores that it produces. As long as
you take the time to create a quality list, and you give everyone the privacy
they need to vote honestly, the outcome of this process should be
something that can give you confidence in the choices you make going
forward.

Key Points

- The Modified Borda Count is a simple tool that can be used to


allow your team to pick from a variety of options the one which is
the most popular option among the group as a whole.

- It can be used where the support of the group is critical, as it is


that same group that is going to be tasked with putting the
decision into action.

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Key Points cont.

- Ideally, the group itself will have a significant input into deciding on
the list of options to be considered.

- Instead of just voting for one item, or more items as in the case of
a Multi-voting system, each voter assign points to their chosen
ideas.

- This is done on a points system (say 1 to 5 points) with 5 points


being given to the favored option, four to the next, then 3 and so
on.

- You can use this system to identify a single winner, or you can use
it to pick out a few winners from a large field.

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Organizing Team Decision Making


No organization can consistently succeed in any market without quality
decision-making. It is the decisions that you make on behalf of your
organization that chart its course for the future, for better or worse. Great
decisions will likely lead you toward your goals, while poor decisions could
quickly lead you out of business.

Certain Need the Your to make the


business involvement &
Team 'right' choice
decisions knowledge of

When you are faced with a particularly difficult or important decision, it may
be necessary to involve some or all of your team members in order to make
the right choice.

Even if you are at the top of your organization as owner or general


manager, you cant be expected to make perfect decisions each and every
time. There are simply some choices that require the input of others in order
to be evaluated properly. When a decision involved elements that are
outside of your area of expertise or experience, it only makes sense to bring
in others to assist in the process.

Establishing a Plan

When you are going to include others in the decision making process, you
need to start out with a plan in mind right from the start. Simply asking
others to help you make the decision at hand could quickly become a
disorganized mess if there is no structure to the process that can be

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EFFECTIVE GROUP DECISION MAKING 27

followed to the conclusion. Fortunately, there are many forms of team


decision making that are used by many previous organizations.

Before you get too far into this process, there are a few things that you
should think about with regard to the decision in front of you. Specifically,
you will want to consider the:

Amount of time that you have to make the decision

How many different people should be involved in the process

What the goal of the final choice will be.

Once you have a clear picture of how this process should work, you will be
ready to assemble a decision making team.

Organized Team Decision Making Process

Must establish a Define goal to be Manage & monitor


plan & structure attained time taken

Assign chair to
maintain control & Use 'best' tool to Idea most practical
focus of help select & supported
discussions

Avoiding the Downfalls

Unfortunately, there are a couple of specific downfalls you are going to need
to watch out for while organizing a team decision making process. The first
is the issue of time management. When you involve a group of people in a

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decision, you are likely to get even more opinions and ideas than expected
which is both a good and a bad thing.

It is great to have access to so many ideas and inputs, but the presence of
that many opinions can cause the decision making process to drag on and
on. Even if you have plenty of time to make the choice, you still want to
keep things moving at a reasonable pace so you can move your team on to
other matters. Therefore, you are going to have to do a nice job of balancing
the supply of ideas and information with a timeline in order to stay on track.

The other downfall of team decision making is often the lack of a clear
hierarchy within the process. Sure, you are going to be at the top as the
owner or manager, but how is the rest of the team organized?

Time frame
& goal

Structure
& roles

Team
Decision
Making must
have clear

If there is no structure among the rest of the group, you may find that you
have a bunch of individuals coming to you with various ideas and opinions
leading to confusion and chaos.

In order to be successful with the process, you need to make sure that there
is plenty of structure in the group to give direction to all of the ideas being
offered up.

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EFFECTIVE GROUP DECISION MAKING 29

Decision Making Options

Now that you have picked out a team and you understand some of the
mistakes that you need to avoid, it will finally be time to work toward making
this tough choice. To do so, you can implement one of several different
decision making models.

Using the right model is going to come down to understanding the


personalities within your team and picking a choice that makes the most
sense in your circumstance. A couple of the most-popular options are listed
below.

Multi-Voting. One of the leading ways to make a group decision


is through a method known as multi-voting. In this method, a list
of possible decisions is compiled through collaboration on the part
of the team. Then, once that list is organized and finalized, a vote
is taken in which each team member is given a certain number of
votes to cast.

The idea, or ideas, which receive the most votes, will be the
winner. In this method, everyone gets a voice in the process, and
the final choice is as democratic as possible. This kind of system
works best when a large team is in place.

Modified Borda Count

Ideal Models for Team


& Decision Making

Multi-Voting

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30 EFFECTIVE GROUP DECISION MAKING

Modified Borda Count. Some decisions that need to be made


are not as simple as either picking option A or B. When there
are a number of choices to be made simultaneously, a Modified
Borda Count is a great idea.

This method of decision making requires all of the team members


to rank potential options from most-desirable to least-desirable,
and those ranking points are used to establish order within the
list.

Team members generally enjoy this kind of decision making


because it allows them to not only vote for the options that they
support, but rank those options according to their own personal
opinions.

Of course, these are just two of many possible team decision making
models that can be used while you are trying to organize your process. No
matter which model you decide to use for your own purposes, make sure it
is well-suited to your needs and well-understood by your team.

Everyone involved in the decision making process should have a


clear picture of how the process is going to work before it even
begins.

It is your job to organize the team and get everyone on the same page so
that all involved are able to voice their opinions and ideas in a productive,
supportive forum. Once you settle on a format that works for your team
decision making, you should be able to use that same format time after time
for subsequent choices that come up.

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EFFECTIVE GROUP DECISION MAKING 31

Key Points

- Team decision making is important where the support of the group


is critical, for example where that same group that is tasked with
putting the decision into action.

- When you involve a group of people in a decision, you are likely to


get even more opinions and ideas than expected, which is both a
good and a bad thing.

- You can use the Hoy-Tarter Decision Making Model to help you
decide which team members you should involve in the decision
making process.

- In order to be successful with the process, you need to make sure


that there is plenty of structure in the group to give direction to all
of the ideas being offered up.

- Two of the best ways to make a group decision is through either


multi-voting or using a Modified Borda Count.

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32 EFFECTIVE GROUP DECISION MAKING

Hartnetts CODM Model


As you already know, it can be difficult if not impossible to come to a
consensus when working with a team of individuals. Everyone in your group
is going to have their own opinions on a given topic, and while there is
bound to be some overlap in those opinions, there is going to be some
disagreement as well.

Hartnett's
CODM Model
Helps identify where the
consensus of a group lies when
making a decision that requires
the whole group's support

As a manager or business owner, it is your job to sort through the


disagreements and use all of the opinions at hand to come to a decision that
is in the best interest of the organization.

To make it easier for you to figure out where the consensus of the group
may lie, you might want to consider using Hartnetts CODM Model. The
CODM in the title of this model stands for consensus-oriented decision
making, which should tell you all you need to know about the goal of this
model and how it is designed to work.

C Consensus

O Orientated

D Decision

M Making

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EFFECTIVE GROUP DECISION MAKING 33

This is a model that is designed to be used in group settings when a


decision needs to be made that all can support.

Calling on a Group

Of course, you arent going to use group decision making for every problem
that you face in your organization. For one thing, there wouldnt be time to
always use a group decision making model you would be stuck in one
meeting after the next with no end in sight.

Also, it simply isnt necessary to create a team to solve every small problem
that comes up. Many of the day-to-day choices that need to be made, can
be handled by you, as the manager or owner without any meaningful input
from staff members.

However, there are going to be important decisions that come along which
call for the formation of a team. These are the decisions that are going to
impact your organization in a significant way going forward, and they are
choices that you can take some time to make.

If you would like to use Hartnetts CODM Model to solve such a problem,
use the seven steps below to move through the model from start to finish.

Hartnett's 6. Develop a
5. Choose a
preferred
CODM Model direction
solution

1. Frame the 4. Develop 7. Close &


problem proposals monitor

2. Have an 3. Identify Ensures whole


open underlying group's buy-in to
discussion concerns final decision

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34 EFFECTIVE GROUP DECISION MAKING

1st Step - Framing the Problem

You cant accurately solve a problem if you dont know what the problem is
in the first place. Make sure that everyone on the team is well-informed as
to the specifics of the problem, why it is a problem, and what the ideal
solution is going to accomplish.

2nd Step - Having an Open Discussion

Once all involved are clear on what the problem is, the next step is to have
an open and casual discussion about that problem. At this point, there arent
going to be any grand plans established, and there certainly wont be any
decisions made on how to move forward.

Think of this stage as laying the groundwork for future discussions


and meetings, which will come to more concrete solutions.

3rd Step - Identifying Underlying Concerns

One of the benefits of your initial meeting is the fact that you are likely to
uncover hidden problems that werent really considered initially. As your
team discusses the main problem at hand, it may be that other issues pop
up along the way.

It is at this point that you should highlight those underlying concerns, and
figure out what measures can be taken to mitigate their significance.

CODM Model -
group decision making

Whole group
Step 4 - Developing Choose whether
Proposals perform as a
Several small
teams

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EFFECTIVE GROUP DECISION MAKING 35

4th Step - Developing Proposals

By the time you have reached this fourth step, things are going to begin to
get more organized. You will now put together some formal proposals on a
solution for the problem at hand.

You can either work together with the entire team to develop a few different
proposals, or you can choose to break the team up into groups in order to
have each craft their own proposal. The latter option can be attractive when
you have a divided room in other words, a meeting that is split into two or
three different groups who view the issue in different ways.

5th Step - Choosing a Direction

With the proposals created and on the table, it will be time to sort through
them in order to make a decision. It is important to remember that you dont
necessarily have to pick one specific proposal in order to move forward it
may be that the best option for your needs is to use a combination of ideas
from two or more proposals.

CODM Model
Or, by selecting Step 5
the best parts Choosing a
of different
proposals Direction

May be selecting
one specific
proposal

6th Step - Developing a Preferred Solution

The time has come to make the final decision and to put that decision into
action. There will have been no point to going through this process is the

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36 EFFECTIVE GROUP DECISION MAKING

final decision isnt going to be enacted, so make sure there are steps which
will get the ball rolling on the decision as soon as it is approved and
finalized.

7th Step - Closing and Monitoring

As you know, there is no such thing as a decision in business that you can
just forget about and move on from. You should be monitoring the decision
after it is made to make sure that it has had the desired effect. Most likely,
you will need to tweak minor things about the decision in order to make sure
it is as successful as possible over the short and long term.

Whilst Actions
Any minor
must be Ensure
Implementing monitored
changes
success
the Decision made to
and

It is likely that your team will appreciate using this decision making model as
they will have a chance to make sure their voice is heard along the way.

Even if you dont have a true consensus in terms of everyone on the team
totally agreeing with the final decision, at least you will have given everyone
involved a chance to provide his or her input. It is important to the health of
your organization to make sure that no one feels marginalized in terms of
his or her role in the business, and using things like the CODM Model are
great for just such concerns.

You may not have to use group decision making on a frequent basis within
your organization, but when the time does come to form a team in order to
make an important choice, you can turn to the CODM Model for assistance.

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EFFECTIVE GROUP DECISION MAKING 37

Key Points

- Hartnetts Consensus Oriented Decision Making (CODM) model is


a seven step process that facilitates group based decision making
on a consensus basis.

- It can be used in any group situation, regardless of whether the


final decision-making power rests with a single person or the
whole team. The Steps are:

- Identify the problem, ensure that the right people, information,


resources and stakeholders are involved, and set the decision
rule.

- Have an open discussion to generate as many initial ideas or


solutions to the problem as possible.

- Identify the issues and stakeholders who will be affected by this


decision.

- Develop proposals that address the problems identified in the


previous step.

- Decide on the best proposal to take forward.

- Develop and improve the final proposal further.

- You should have a solution that passes the decision rule.

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38 EFFECTIVE GROUP DECISION MAKING

Bains RAPID Framework


One of the biggest keys in decision-making is understanding who has
responsibility of which parts of the decision. When dealing with a large
decision that features many moving parts, it is likely that you will have plenty
of different people involved in the process. Without a clear distinction with
regard to who is in charge of what, there is a strong possibility that
confusion will reign.

Which individual is
Know who is in
responsible for
charge &
what

Requires
Need everyone
considerable time
involved to
investment

Complex
Decisions

You already understand just how important it is to make good decisions


with this model, you can gain an appreciation for how important it is to have
the right people in the right roles during the decision making process.

Before getting too far into this model, it should be noted that:

Not all decisions are going to warrant the time investment required to
use the RAPID model.

In fact, it is likely that most of your decisions will not warrant the use of this
tool, as the average business decision can be made quickly by a single
person.

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EFFECTIVE GROUP DECISION MAKING 39

However, when those big decisions come across your desk and you know
that it is essential to get the choice right, you may wish to employ RAPID as
part of your overall approach to the issue.

As you would likely assume, RAPID is an acronym for five roles that can
exist within the decision making process. Those roles are as follows

Recommend

Agree

Perform

Input

Decide

To help you understand each of these five roles within the model, we have
provided a short description of each in the content below.

R Recommend

A Agree

P Perform

I Input

D Decide

Recommend Role

The person or people in this category are, obviously, those who are going to
be making the recommendations for the decision at hand. Likely, this is
going to be a department manager, or someone else in a position of power
who can offer their opinion right from the start.

Of course, the recommendation that they make is not necessarily going to


be the final decision, but rather it will serve as a starting point for the

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40 EFFECTIVE GROUP DECISION MAKING

process. It is important to get started with some sort of direction, and that
direction can then be altered or adjusted as necessary along the way before
a final decision is made.

Agree Role

This is a group of people who are going to be in agreement with the


recommendation that has been made for the decision. While this group is
going to stand behind the choice that has been made by the people in the
Recommend group, those within the Agree group may also provide their
own opinions in order to shift the recommendation as needed.

Recommend
Agree group
Must all Final
group support Decision

In the end, the official recommendation that is offered for this decision
should be something that everyone in the Agree group can support.

Perform Role

Who is it that is going to put this decision into action? These are the people
that make up the Perform group. Depending on the specifics of the decision
at hand, those within this group could potentially come from a wide variety
of departments or areas within the organization.

It is hard to pin down where the performers are going to be found within
your business, because that is something that is highly dependent on the
decision at hand. Fortunately, it should be pretty easy to determine who will
be in this group when you think about what it is that you are deciding and
who that decision is going to influence directly.

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EFFECTIVE GROUP DECISION MAKING 41

Input Role

During any decision making process, there is going to be a need for


information to be supplied to those making the choices. That is the job of the
Input group.

Those in this category are going to be the business analysts and others with
information that will be of value during the process of making the final
selection. Having accurate and timely information is extremely important
while trying to make a logical decision, so the vital role of the Input group
should not be overlooked.

To know
who will
perform

Needs
data input
to make
choice
Decide Role
of RAPID
Framework
needs:

Decide Role

When everything has been completed and all of the opinions are on the
table, a decision will need to be both made and executed and that is the
responsibility of those in this group. Not only will the choice have to be
officially made, but that choice will then need to be put into action as quickly
as possible.

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42 EFFECTIVE GROUP DECISION MAKING

Putting the decision into action may be as simple as delegating


responsibility down to those in the Perform group, or there may be other
steps that are required along the way.

It should be obvious by this point that the:

RAPID framework for decision-making is a process that is to be


undertaken only when very important decisions need to be made.

The number of people that will be involved in this process can be quite
considerable. So this framework is best used when dealing with something
that is going to have a significant impact on the organization.

If you are going to make RAPID a part of the decision making process that
you use for choices in your business, you should establish some type of
threshold that will need to be crossed before this option is deployed. By
knowing how important a decision must be in order to start up the RAPID
process, you can be sure to only go down this road when it really is
necessary.

Organizations using the RAPID Framework

for their decision making often set a financial limit, this

Threshold must be exceeded

before it is used to off-set the Large 'resource' investment required

Good decisions are the lifeblood of every successful organization, and


making good decisions often comes down to using a good process. Sure,
you are probably able to make plenty of smart choices on your own as an
owner or manager, but some of the decisions that come in front of you are
going to require the efforts of the entire team to handle properly.

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EFFECTIVE GROUP DECISION MAKING 43

Learn how to put RAPID to use within your organization and you should be
well on your way to a future that is filled with correct choices on the biggest
issues facing your company.

Key Points

- The RAPID framework for decision making is a process that is to


be undertaken only when important decisions need to be made.

- It is a particular tool for clarifying the accountability of critical


decisions in organizations.

- RAPID is an acronym for five roles that can exist within the
decision making process.

- Recommend: This group creates the proposals and


recommendations.

- Agree: This group must agree with the proposals provided by the
recommend group.

- Perform: This group will execute the process after performing the
recommendations and will finally deliver the modified process.

- Input: This group will provide information and facts to the


recommend groups.

- Decide: The person or persons involved in this group is


accountable for the whole execution process.

- You should establish some type of threshold that will need to be


crossed before the RAPID method is used.

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44 EFFECTIVE GROUP DECISION MAKING

The Delphi Method


When you need to make a crucial decision in your business, you will likely
want to invite the opinions and expertise of a number of your team
members. This, of course, is a great thing you will be able to include the
thinking of many of your valued team members in the decision making
process, which should lead to a better end result than if you had simply
made the decision all on your own.

Leveraging the knowledge and experience that exists within your


organization is one of the best things you can do when trying to move your
business forward successfully.

Ability to leverage knowledge

Benefits
Utilize experience within an
organization

Group
Decision Appeals to
Making Authority

Common
Pitfalls
Groupthink

However, when you do opt for group decision making for some of your most
important choices, there are some potential pitfalls that you need to watch
out for. Specifically, you have to avoid appeals to authority and Groupthink.
Each of these are dangerous in a group decision making setting, and both
can derail you from the path toward a smart decision if you arent careful.

To help you understand the danger of these two issues, we have taken a
closer look at them below.

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EFFECTIVE GROUP DECISION MAKING 45

Appeals to authority. Basically, an appeal to authority is a way


of thinking that determines the person who is right in a given
disagreement must be the person with the higher rank. So, for
example:

A vice president would outrank a department manager, meaning the


vice president would be seen as right in any given situation no
matter what their opinion happened to be.

Appealing to authority when trying to make a group decision is a


negative because it can prevent the best ideas from rising to the
top. If you have a great idea presented by someone further down
the line in terms of authority, that idea might not ever receive the
consideration that it deserves.

Appeals Prevent the


In a group best ideas
to decision will from getting
Authority to the top

Ideally, the decision making process will be free from these kinds
of prejudices, instead falling back on the important goal of simply
making the best possible decision for the company as a whole.

Groupthink. When a group is gathered in a meeting room with


the purpose of discussing a specific decision, the risk of
Groupthink is always going to be present.

Groupthink is a situation in which those within a group simply start to


agree with opinions being offered so that they dont stand out from
the crowd.

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46 EFFECTIVE GROUP DECISION MAKING

In other words, people in the group may decide that it is in their


best interest to agree with a supervisor or manager rather than
stepping out and airing their own thoughts on the subject. Of
course, when this happens, it totally undermines the entire point
behind using a group to make decisions in the first place.

If you are going to get the full benefit from having a group in place
to make decisions, you are going to need to actually have

All of the people in that group feel free to offer up their honest
thoughts.

Having everyone just go along with one or two leaders is


pointless, and it can set back your organization considerably.

If you are going to successfully make a good decision on an important point


that is going to influence your business, you will need to find a way to steer
clear of both appeals to authority and Groupthink.

Fortunately, using the Delphi method is one way to keep your process on
track.

Group Decision Making - Delphi Method

Can express their honest By using a


Ensures everyone system of
opinion without fear of
involved
repercussions anonymity

The Idea

The basic idea behind the Delphi method is providing everyone involved
with a platform on which they can share their honest opinions without fear of

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EFFECTIVE GROUP DECISION MAKING 47

any repercussions. To achieve this goal, the Delphi method is based on a


system of anonymity.

Throughout the process, every who participates is going to offer up their


opinions and ideas on an anonymous basis, to ensure that the group feels
comfortable giving their honest views on the topic.

Even after the decision is made and the process is over, the structure
of anonymity is going to remain.

There are several benefits to using the Delphi method to gather ideas with
the goal of solving a problem. First, you are going to be able to easily avoid
the issues highlighted above. No one will know where the ideas are coming
from, so there wont be any temptation to appeal to the authority behind the
ideas. Also, since there are no face to face meetings at this point in the
process, Groupthink will not be an issue either.

With source of idea unknown

Delphi Method
& avoids appeals to authority
& Groupthink

No face-to-face meetings

The Facilitator

Perhaps the most important person in the process of using the Delphi
method is the facilitator. This is the person who is going to be responsible
for gathering the input from various parties, and they will also need to
disseminate that information to the others in the group for review.

The facilitator needs to be someone who is impartial, trustworthy, and able


to organize and display all of the incoming information in an effective

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48 EFFECTIVE GROUP DECISION MAKING

manner. It is very likely that the success or failure of this method within your
organization is going to come down to the effectiveness of the facilitator.

There is a lot to like about using the Delphi method, as it effectively allows
you to avoid some of the pitfalls that can come along with traditional group
decision-making.

Collating &
Reponsible for distributing data to
all parties

Is key to the
Facilitator Role success of Delphi method

This person must Trustworthy,


be Impartial, Organized

However, there are some drawbacks to be found as well, specifically the


loss of an opportunity to have people work together to develop new ideas.

You will basically be collecting a variety of individual ideas during this


process, which is going to limit you to the existing thoughts and
opinions of the individuals in your group.
So, those individuals wont be able to work together, meaning they
cant develop new concepts in concert with one another.

By avoiding the standard drawbacks of decision-making in a group setting,


you also miss out on some of the potential positives. To be sure, the Delphi
method isnt going to apply to every decision making scenario, but it can be
effective and productive when the right opportunity comes along.

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EFFECTIVE GROUP DECISION MAKING 49

Key Points

- Delphi is based on the principle that forecasts (or decisions) from a


structured group of individuals are more accurate than those from
unstructured groups.

- It is designed to avoid the negative effects of face-to-face panel


discussions and solve the usual problems of group dynamics
including groupthink and deferring to authority.

- The Delphi method is based on a system of anonymity, providing


everyone involved with a platform on which they can share their
honest opinions without fear of any repercussions.

- The method requires a facilitator who is responsible for gathering


the input from various parties, and disseminating that information
to the others in the group for review.

- The facilitator needs to be someone who is impartial, trustworthy,


and able to organize and display all of the incoming information in
an effective manner.

- Throughout the process, everyone who participates offers up their


opinions and ideas on an anonymous basis over several rounds.

- Whilst it avoids the common drawbacks of decision making in a


group setting, the Delphi method does not offer any opportunity for
collaborative creativity.

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50 EFFECTIVE GROUP DECISION MAKING

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References
Mckeown, M. (2nd Ed. 2015) The Strategy Book: How to Think and Act
Strategically to Deliver Outstanding, FT Publishing International

Cadle, J., Paul, D. and Turner, P. (2010), Business Analysis Techniques, 72


Essential Tools for Success, BCS The Chartered Institute for IT.

Johnson, G., Whittington, R. and Scholes, K. (2009), Exploring Corporate


Strategy with MyStrategyLab, Financial Times/Prentice Hall.

Kotler, P., Keller, K.L., Brady, M., Goodman, M., and Hansen, T. (2009),
Marketing Management, Pearson Education.

McDonald, M. and Wilson, H. (2011), Marketing Plans: How to Prepare


Them, How to Use Them, 7th Edition, John Wiley.

Campbell, D., Edgar, D., Stonehouse G., (3rd Ed. 2011) Business Strategy:
An Introduction, Palgrave Macmillan

FT Series (1st Ed. 2013), FT Essential Guide to Developing a Business


Strategy: How to Use Strategic Planning to Start Up or Grow Your Business,
FT Publishing International

Aaker, DA., Damien McLoughlin, D., (1st Ed. 2011) Strategic Market
Management: Global Perspectives, John Wiley & Sons

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52 EFFECTIVE GROUP DECISION MAKING

Johnson, G., Whittington, R., Scholes, K., Angwin, D., Regnr, P., (10 th Ed.
2013) Exploring Strategy Text & Cases Pearson

Hooley, G., Nicoulaud, B., Piercy, N., (5th Ed. 2011) Marketing Strategy and
Competitive Positioning Financial Times/ Prentice Hall

The Economist, Kourdi, J., (3rd Ed. 2015) Business Strategy: A Guide to
Effective Decision-Making Economist

McDonald, M., Wilson, H., (8th Rev. Ed. 2016) Marketing Plans: How to
Prepare Them, How to Profit from Them John Wiley & Sons

Baye, MR., Prince, J., (Global Ed. 2013) Managerial Economics and
Business Strategy McGraw Hill Higher Education

Cotton, D., (2010) The Business Strategy Toolkit Management Books 2000
Ltd

Campbell, D., (2nd Ed. 2002) Business Strategy: An Introduction

Routledge

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