Decision-making is an art
According to a study of 376 real-life business decisions, managers tend to use
decision-making tactics that are the easiest -- and, consequently, the least
successful.
The study, conducted in 1998 by Ohio State University researcher Paul Nutt,
found that only 50 percent of decisions made by persuasion -- in which managers
cite the benefits of a change in order to influence others to adopt it -- were
adopted by the organization. Worse yet, only 38 percent of decisions made by
edict -- where managers don't collect input from others -- were adopted.
Surprisingly, Nutt found that the top managers he interviewed for the study
relied on these two techniques the most -- turning to them 49 percent and 30
percent of the time, respectively.
Instead, Nutt suggests that managers should look to two different techniques
when making decisions: participation and intervention.
Participation involves having all affected parties play a role in the
decision-making process. This was successful in 80 percent of the cases that
Nutt studied, although top managers used it only 13 percent of the time.
The other successful option, intervention, involves establishing standards or
expectations for performance, usually by making comparisons to similar
organizations. Then, a team's performance is measured against those standards.
When there's a gap, managers work to find justifiable ways to close it.
Without a doubt, intervention takes time -- and that's one reason why only 8
percent of top managers used the technique in the cases studied. But, given
that intervention is successful 90 percent of the time, more managers might
want to start setting aside some time to give it a try.
From the Software Development Magazine, May 2005, by Amit Asaravala.