Organizational success depends on the ability to make good decisions. Research by management consulting firm Bain found that decision-making effectiveness and financial success were 95 percent correlated. Profitability was also shown to be about 6% higher for organizations that are good at both developing and executing decisions.
Managers often have the final say when it comes to major decisions that have an impact on long-term goals. The majority of those polled (61 percent) say that at least half of the time they spend doing so is a waste.
With this demography in mind, here are five ways you can improve your management skills and help your firm prosper.
Managerial Decision-Making Techniques
1. Start with a Methodical Approach.
In order to effectively manage others, one of your key responsibilities will be to use organizational procedures to achieve your objectives and deliver outcomes. Professor Len Schlesinger of Harvard Business School, who is featured in the online course Management Essentials, says that one of the processes you may exploit to your advantage is decision-making.
In Schlesinger’s view, “the majority of individuals think of making decisions as an event.” A ‘decision of consequence’ is rarely reached at a single point in time, and then everything moves ahead from there. To be more precise, the subject under discussion here is the progression of some sort. Despite its simplicity, the manager’s responsibility in managing the process is both clear and complex.”
You should begin by framing the issue at hand to ensure that the correct questions are being addressed and everyone is on the same page about what needs to be resolved. To begin, you’ll need to put together a team and manage the dynamics of the group. You can reach your goal by following a methodical, step-by-step procedure.
2. Make Sure Everyone Is Involved
The decision-making process doesn’t have to be conducted in a vacuum. A creative problem-solving process might be sparked if all of your team members are involved in the discussion.
There is evidence to support the effectiveness of team decision-making, which draws on the aggregate knowledge and experience of its members to generate more creative solutions while also exposing and overcoming any underlying biases.
You can become more conscious of your own hidden biases and lead your team with a stronger level of emotional intelligence by considering the viewpoints of others on how to approach and overcome a certain difficulty.
2. Embrace a Collaborative Approach
Early in the decision-making process, it’s vital to instill a collaborative mindset in your team, rather than a combative one.
When making a decision, it’s important to keep in mind two mindsets:
As a way of thinking, advocacy treats decision-making as though it’s a game. Individuals in a group with an advocate attitude want to persuade others, defend their beliefs, and minimize their flaws.
Decision-making and problem-solving can be improved by adopting a mentality of inquiry. An inquiry mindset focuses on individuals testing and analyzing assumptions by offering balanced arguments, contemplating alternatives, and being open to constructive criticism, rather than relying on persuasion and lobbying.
According to HBS Professor David Garvin in Management Essentials, “on the surface, advocacy and inquiry approaches appear deceptively similar.” In both, people are involved in debates, drawing on evidence and formulating options, and then deciding on future routes. Although they share many similarities, the outcomes of research and advocacy are substantially different.
According to a recent study by Cloverpop, decisions taken and implemented by diverse teams result in 25% to 60% higher outcomes. Instilling an inquiry attitude in your team members will empower them to think critically and encourage them to express their ideas rather than discourage them and ignore them.
3. Establish and Maintain an Environment of Psychological Safety
Creating and maintaining a climate of psychological safety is essential if you want your team members to feel free to express themselves and work together effectively.
Psychological safety is the most essential dynamic identified in high-performing teams, according to Google research.
According to HBS Professor Amy Edmondson in Management Essentials, “psychological safety is essential—first and foremost—for getting the knowledge and viewpoints out.” In order to arrive at a final decision, it’s important to be able to articulate our thoughts clearly and effectively.
Respect and fair treatment when listening to everyone’s perspectives will go a long way toward making your team feel comfortable and secure. Be honest and straightforward while expressing your own views, and adjust your communication style to suit the group’s preferences. You can build a stronger relationship with your employees by listening to them and being aware of their feelings and attitudes.
4. Repeat the Purpose of the Decision in a clear and concise manner
A typical management error must be avoided during the decision-making process, and it is imperative to remember the aims and purpose of the decision at hand.
To ensure success, the objectives you’re working toward must be clearly stated at the commencement of the decision-making process and continually re-iterated throughout.
While discussing these issues, “it is very easy to get so immersed in one substantial aspect of the equation, that you lose track of what the fundamental aim is,” Schlesinger tells the New Yorker.
Making decisions on complicated initiatives like organizational change requires revisiting purpose in order to ensure your team is motivated and engaged, as well as aware of how individual efforts contribute to broader goals.
THE ABILITY TO MAKE THE RIGHT DECISIONS
To become a better manager and enhance your career, it is important to improve your decision-making ability. Taking a management training course can provide you the skills and information you need to help your organization and your team succeed together.