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Decisiveness
Subprime mortgage troubles, the dropping dollar, rising oil prices, capricious stock markets –
2008 looks to be a volatile year for many industries and many companies.
The rapid pace of business and increasing time pressures mean that dealing with the speed and
complexity of all this volatility and change has become an everyday challenge. In this
environment, leaders will be judged more heavily than ever on whether the decisions they make
help or hurt their companies.
The best leaders make sound, defensible decisions in a timely fashion, especially in times of crisis
and uncertainty. Managers at all levels of the organization are involved in constant decision-
making and the quality of these decisions (both speed and soundness) accumulates and decides
the fate of the organization. Executives perceived as indecisive or poor decision makers will
quickly lose the confidence and commitment of their team.
The Process
The dangers of taking too long to come to a decision are obvious. However, leaders must also
consider the dangers of deciding too quickly. Leaders who make mostly good decisions
recognize that it happens as a process, not at a single point in time. The process employed by
successful decision-makers entails the following:
Decisiveness Defined
is the willingness to make decisions, even in the face of complexity or uncertainty. When we
are decisive, we weigh the information that is available to us and we use our judgement to
choose among the possibilities. It is easier to be decisive when we are clear about our values
and goals.
Decisiveness means taking the risk that we may be wrong, but knowing that perfect clarity is
rarely available and indecision can be costly. It also means taking responsibility for the
outcome of the decision.
THE ROLE OF DECISIVENESS IN ACHIEVING RESULTS
When decisions need to be made, effective managers gather the facts, analyze the situation,
consider alternatives, and decide on the best course of action -- and they do it quickly! They don't
procrastinate, and they certainly don't stand around wringing their hands. They move!
Further, once a decision is made, there is no looking back. The time for constructive dissent has
passed. Instead, it is time for all members of the team to get behind the decision with 100
percent buy-in, even if their recommended course of action was not taken, and it is incumbent
upon the manager to ensure this happens. Even the best decision can be undermined by lack of
support and backroom second guessing.
Decisive managers understand that their decisions may not be perfect and, therefore, that
modifications may be needed. They don't hesitate to modify or alter their decisions when it
becomes clear that the original decision isn't working out exactly as planned. The effective
manager knows that making a decision and taking action is almost always better than taking no
action at all.
Frank was conducting a leadership session , in Toronto, Canada. It was a retreat for top-level
managers. He asked the group about the outcomes of their decision making: "If you could go
back through all the decisions you made in the last year, what percentage of those decisions
would you make in exactly the same way?" The consensus of the group was about 50 percent.
One participant said that even though he would change about 50 percent of his decisions in
some way, he wouldn't want to get out of the "decision-making business."
Some managers postpone tough decisions with the rationale that they aren't hurting their
organization if they wait until things look clearer and an obvious decision can be made. This
rationalization couldn't be further from the truth. Many a manager has experienced missed
opportunities resulting from this way of thinking. You need to gather facts and data, analyze
them, consider alternatives, and move forward, making the best decision you can at the time with
the information that is available.
I know that making decisions and taking action comes at a risk. After all, you may make a
mistake. It has always been my preference to take the risk anyway. I've never considered making
an honest mistake to be a career-interrupting event for myself or the people who have worked for
me. However, making a mistake, realizing it, and not taking immediate action to correct it could
very well be. Too often, ego and pride get in the way of taking corrective action, and the result is
wasted time and energy.
The hardest decisions to make are usually the ones for which managers receive many different
opinions on the best course of action. For some managers, myriad opinions would be reason not
to decide at all. My advice to managers has always been to use their best judgment, choose a
course of action, and get on with it. Furthermore, I always advise that if the decision proves not to
be the right one, fix it as quickly as possible.
Have you ever had a manager who just couldn't make a decision? Unfortunately, there are many
of them out there, and they are very frustrating to work for. As compared with consensus-building
managers who procrastinate in making decisions, though they eventually will regardless of how
late or watered down, here I'm referring to managers who just can't make a decision at all.
Perhaps they lack self-confidence, believing they are unable to make the right decisions, so they
take no action. These managers can be salvaged if they work for strong leaders who force
decisions to be made.
Other managers might simply be lazy, or they don't want to take the time required to make good
decisions. They are comfortable with the status quo and don't see, or choose not to see, that
their decisions are necessary. These are the managers who usually can't be salvaged and need
to find another line of work -- one that does not involve managing people.
Just Make a Decision Already
Strategic decisiveness is one of the most vital success attributes for leaders in every position
and every industry, but few leaders understand where it comes from or how to find more of it.
It is not surprising that picking one strategic direction and then decisively pursuing that
direction are hallmarks of good leadership, if not boilerplate management skills. The big
mystery is why these obviously important skills are still rare enough to distinguish excellent
leaders from average managers.
In researching Why Quitters Win, I came to recognize the three primary sources of
decisiveness — nature, training, and incentive — and also how you can manipulate them to
claim an advantage for yourself and your organization.
1. Decisive By Nature. In a 2010 study, Psychologist Georges Potworowski at the University
of Michigan found that certain personality traits (e.g., emotional stability, self-efficacy, social
boldness, and locus of control) predict why some people are naturally more decisive than
others.
When faced with two equally attractive strategic options, timid, less emotionally stable
leaders who fear upsetting anyone will let the debate drag on for weeks or months before
selecting a compromised Frankenstein solution that both sides can merely tolerate. At the end
of the year, the team is moderately satisfied with their moderate impact on a smattering of
moderately important objectives. The team successfully achieves mediocrity, which is then
reflected in the leader’s mediocre performance ratings.
More decisively gifted mangers make it clear from the beginning that they will carefully
consider both sides of the argument, but will ultimately choose what they judge to be best for
their team. They make the decision early on, and move quickly to enlist both sides in
executing her decision. Some members of the team are not thrilled with the choice but are
quietly pleased to finally have some clarity of direction. The team makes significant progress
in the chosen strategic direction, which is reflected in their high performance ratings.
2. Decisive By Training. In the mid-1990s, researchers Shelley Taylor of UCLA and Peter
Gollwitzer at NYU discovered that when contemplating a decision we have not yet made,
virtually everyone will temporarily exhibit the same personality traits — neuroticism, low
sense of control, pessimism — that the Michigan study linked to indecisiveness. As soon as
we make the decision and begin charting the steps for executing it, our brains automatically
switch gears. All of the sudden, we feel confident, capable, and in control — the perfect
mindset for behaving more decisively.
In other words, all of us have the potential to be decisive or indecisive. In a given day, most
of us slip in and out of a decisive mindset. The excellent leaders in Kevin Wilde’s study have
simply learned how to make “decisive” their default setting. That initial decisiveness puts
them in a more decisive mindset which begets even more decisiveness and so on.
Paradoxically, it seems the best way to slip into a decisive mindset is to make a decision. But
in my experience, simply training people to apply a simple process with a clearly defined
start and end point gives them the emotional permission they need to get the ball rolling with
that first decision.
3. Decisive By Incentive. In 2006 Agilent Technologies CEO, Bill Sullivan decided that his
managers’ decisions were not keeping pace with the rapid industry changes. Within just 3
years, the company’s mangers leaped from the 50th percentile in decisiveness (relative to
industry peers) up to the 82nd percentile. How?
Together with his head of Global Talent, Kirk Froggatt, Sullivan created a simple “speed to
opportunity” metric in which they periodically asked every employee to rate their manger on
decisiveness. The simple metric made Agilent’s managers constantly aware that timely
decisions are both valued and rewarded in their organization.
Neither the training mentioned above, nor incentives like Agilent’s decisiveness metric
invalidate data-gathering, collaboration, and critical thinking skills. These skills should be
baked into the decision process itself. The point is to clarify for managers that all of these
skills are merely means to the true end goal of making a decision. If the end result is not a
timely decision, then it doesn’t matter how much collaboration or critical thinking took place.
Decisiveness
Definition: Makes timely and sound* decisions based on analysis of the information
presented in the face of ambiguous or conflicting situations or when there is an associated
risk. It involves being able to know when to stop collecting data when sufficient information
is obtained and make decisions that consider available evidence, weighs information based on
relevancy and accurately identifies the consequences of decisions or actions against desired
outcome (based on available information at the time).
* Decisions are sound given what was known at the time and are based on good judgement.
Scale progression: The scale progresses from making timely yet basic decisions in simple
situations to making complex and strategic decisions in ambiguous situations.
Level 1
Level 2
Level 3
Level 4
Level 5
2. Become informed
In order to make a good decision you need to make sure you have the
information and facts you need. It could be that you need to find out
about any laws or regulations, get financial reports or documentation,
do further due diligence, read up about a particular subject or talk to a
co-worker or expert. Whatever the case may be, good decisions are
informed decisions.
4. Seek counsel
While we can often shy away from asking for help and advice, drawing
on the knowledge and experience of others is a sign of wisdom. The
key is in knowing who to ask and being mindful that each person will
bring their own opinion to the decision. Your role is not to blindly
follow, but to listen and make the decision you think is best.
Moving forward in your workplace requires leadership qualities, including creativity and decision-making, which
go hand-in-hand. You must have confidence in yourself and your ideas in order to make them work. To waffle
back and forth about how to attack a problem renders you helpless-looking in front of your boss and coworkers.
To continue on your work journey, you must make sound and quick decisions and be prepared to take
responsibility for their outcomes, both good and bad.
Go All In
Once you've determine the best path to take, do it with confidence and leadership. Don't waffle back and forth,
particularly in front of people. Open yourself to ways to amend the decision if something isn't working, but do not
falter before putting the basics into action. The consideration should take place before you've decided on any
action. Once you have decided, your team needs to believe in the plan and have confidence they are doing the
right thing. You can give that to them by being sure of yourself, and using your research and preparation to
deflect potential problems. Being decisive means putting a full effort into the decision you've made while
remaining open to compromise.
Accept Responsibility
The decision-making process does not end once you put the plan in motion. You must step up to the plate and
accept responsibility for the results your decision has wrought. This will earn you respect among your coworkers
even if your decision caused more problems than you anticipated. They will be more likely to continue to follow a
leader who owns up to faulty thinking and asks for help than they will someone who refuses to admit a mistake
and forces the issue to its original resolution without taking new information into consideration. On the other
hand, when your decisions that have been well thought-out and researched do well, you get to graciously accept
responsibility for those, too.
Decisiveness: Three Steps To Making a Decision
Making a decision can be tough, especially when it’s a business decision. You face an
almost infinite range of things that you could be doing in your business at any
particular moment.
You could choose to deal with a staff issue, a bank issue or a cash flow issue. You can
decide to focus on a new customer acquisition tactic or strategy, a new ad campaign
or an issue that has come up with a customer. You can choose to deal with
administrative details or you can choose to deal with personal and family issues that
so often seem to be intertwined with the business. Or you can choose to do any of
the other infinite possibilities that face you as a business owner.
For many business owners, this massive number of options can cause them to put off
making a decision. They fall into believing that if they can just gather more data and
consider more options, they may be struck with a flash of brilliance that will guide
them.
In most cases, the hoped-for flash of brilliance doesn’t materialize and you are
eventually forced into making a decision (i.e. payroll needs to get paid; the lease is
expiring this month; you need more sales, etc.).
When faced with the sudden pressure of making a decision, the decision that is made
is often a poor one. It ends up being based on a default position that is based on
ease rather than what is optimal for creating the results you want. There is a better
way.
1. Realize the staggering range of possible options facing you is usually perceived
rather than real.
2. Create a CVM (could versus must) chart.
3. Don’t look for a sports car when a minivan will do.
Everything else you think you need to deal with (all the other sources of perceived
complexity) are simply variations of the four things listed above.
An excellent way to do this is to create a CVM Chart. This a powerful way to examine
any current situation and identify the high impact things you really should be
focusing on.
To create a CVM Chart, take a blank sheet of paper and on the left hand side of the
page, list everything you can think about that you could do at this very moment in
your business. This is where you will generate a laundry list of things that play
around in the back of your mind. List them down and acknowledge them. It will get
them in front of you where you can deal with them.
Next, on the right hand side of the page, distill from your list of all the things you
could do into three things that you must do right now. Keep the four things from
step one above in mind as you identify these three things.
You need to apply the same type of realistic mental discipline when you consider the
things you must do.
For example, don’t get caught up thinking you need to create an entirely new
product or service offering if you can get a sufficient boost in your financial results by
simply asking your existing customers to buy more from you.
Adopt this three-step process in your business any time you start feeling
overwhelmed by making a decision. You will feel more in control and you will make
better decisions.
Understanding Decisiveness
Decision making can sometimes be very challenging. It can be hard to make decisions when you're
dealing with uncertainty, complexity, and risk. Unfamiliarity and fear of consequences, known and
unknown, can also make decision making difficult.
The way individuals handle decisions can mean the difference between decisiveness and
procrastination. Typically, decisive individuals tend to possess three key character traits: realism, self-
confidence, and an orientation to action. The ability to balance optimism and pessimism helps them be
realistic. Self-confidence allows decisive people to make decisions with conviction. Being action
oriented helps them avoid procrastinating.
Individuals who are decisive enjoy some significant advantages over their less decisive counterparts.
They're able to save time, are less stressed, and are regarded positively by others.
Defining Objectives
One additional characteristic decisive people tend to share is that they're quite systematic. They
typically have some kind of process they follow to make decisions easier. You, too, can use an
effective four-step process to help you be decisive. The steps are to define the objective, create
options, assess options, and choose the best option.
The first step to take when making a decision is to define the objective of the decision. Ask yourself
what it is you want to achieve. This will help you focus your efforts.
At this point, you need to be clear about the issue you're making the decision about. The more you
know and understand the issue, the more likely you'll be to make an appropriate decision.
You can ask questions to determine if you're focusing on the right issue. An effective way to do this is
to ask "Why?" until you reach the point where asking "Why?" doesn't break the issue or problem
down any further.
Creating Options
Now that you understand the issue clearly, you can move on to step two – create options. Exploring
the issue to develop viable alternatives will help you make the best decision.
Consult with others to broaden your perspective on an issue and become aware of alternatives. You
may even find that you're able to combine some of the options.
Assessing Options
Once you're confident you've identified realistic options, you can move on to the third step – assess
options. Compare the options to the objective you defined in step one by determining a number of
factors.
1. risk – Uncertainty leads to risk. Analyze the risk associated with each option to
determine which option has the least risk, or perhaps more important, the most
manageable risk. Sometimes the deciding factor in risk is the cost to manage it – be
sure to determine this too.
2. implications – After analyzing the risks, evaluate the potential implications of each
option from various perspectives. This can help you uncover unexpected
consequences. You should also weigh the pros and cons of each choice.
3. feasibility – Once you've evaluated the implications, determine the financial
feasibility of each option. Assessing feasibility helps you understand which option
provides the most benefit for the least cost.
Choosing the Best Option
Now that you've assessed each option, it's time to choose the best one. Several actions can help you
perform the final evaluation. To begin, revisit the objective to make sure it's fresh and clear in your
mind.
Next, remain objective – be vigilant in making sure your personal biases don't influence your
thinking.
Finally, assign priority to key factors so you know which ones are most important to making a
successful decision.
Once you've thoroughly reviewed the options, choose the one that best meets the objective of the
decision. Look for the option that offers the best combination of manageable risk, implications, and
financial feasibility.
Being decisive can save you time, reduce stress, and reflect positively on you.
Decisiveness depends on the existence of three well-honed characteristics – being realistic, self-
confident, and action oriented.
A four-step process can be used to help make good decisions. The process involves defining the
objective, developing alternative solutions, assessing these options, and choosing the best option.