Decision Making Process

1. Decision Making Process Session 2: January, 24, 2006

2. Decision Making at the Top • Process Evaluation • Process Design • Process Leadership • Process Fairness • Process Improvement

3. Process Evaluation • Managers should systematically evaluate DM processes. • Key Evaluation Criteria: • Multiple alternative generation • Fact-based problem solving • Cognitive conflict • Affective conflict • Advocacy • Clarity of norms and goals • Behind-the-scenes coalition formation

4. Process Design and Leadership • Leadership approach and DM process design interact with each other. • Key questions regarding DM process • How does use of subgroups and one-on-one meetings affect managerial behavior? • What mechanisms affect the emergence of different forms of conflict and political behavior? • What methods are used to choose among competing alternatives?

5. Process Leadership • Effective general managers play multiple roles in the DM process • The GM wears “Two Hats”: A time to be a member of the team, to argue, to test ideas, to have people push, to get into the rough and tumble of work…and wear the “cowboy hat” A time to make the decision, and a time to wear a “bowler”. • Good leaders know when to pivot.

6. DM Process Fairness • Individuals value the fairness of the DM process as much as they care about the outcome of that process. • Three components of fairness: • Engagement • Explanation • Expectation of Clarity

7. DM Process Improvement • GMs must often make concurrent changes in four areas to improve the quality of DM processes. Group Structure Process Design Quality of DM Process Team Leadership Behavioral Norms

8. Ultimately, effective decision-making processes are characterized by: “Diversity in counsel, unity in command” - Cyrus the Great