March 2012

Decision Making and Delegation: Disciplines That Maintain the Competitive Edge
by Rich Enners

Use Teams to Maximize Performance

One of the most important responsibilities of a leader is to make decisions and sometimes very tough decisions. The link between leadership and decision making and what decisions are delegated is extraordinarily strong. Leaders at all levels take this responsibility seriously so that the right decisions are made in the shortest period of time and in the best interest of the company. Great leaders delegate; push decision making to the lowest levels in the organization so they can focus on activities like planning, performance coaching, setting goals, and developing strategies.

The Decision Making Process

Routine decisions are usually made based on experience and gut feel. More complex decisions typically follow a simple process. This does not mean, however, the process has to be time consuming. The following are nine steps that lead to timely and sound decision making:

  1. Recognize there is a problem or an opportunity—Confront the brutal facts.
  2. Define the desired outcome—Determine your goal and the desired end-state.
  3. Select the criteria—Itemize the criteria by which to judge the effectiveness of the outcomes. Ensure the criteria are objective.
  4. Develop options—Brainstorm ideas for possible courses of action. Be creative.
  5. Evaluate each option—Rate each course of action against a criteria keeping in mind what's important for the business.
  6. Seek feedback—Consult with individuals or consult with a group. Ensure they have the skills to provide useful facts and ideas.
  7. Choose the best option—Select the option based on the input from the individuals or the group that best achieves the goal.
  8. Implement the decision—Immediately implement once the decision is made. This is where most leaders fail.
  9. Monitor and follow-up—Develop and install a tracking mechanism to determine progress. When off track take corrective action.

Decision Making Styles

Depending on the nature and importance of the decision, leaders either make the decision or delegate. In either case there must be a balance between making a perfect decision and one that holds minor risk. It is always best to delegate where feasible. Jim Collins, author, says "leaders make those decisions that can't be delegated". Victor H. Vroom of Yale University developed a model that explains when to involve others in the decision making process. This thought process highlights five decision making styles and is based on increasing levels of group participation.

  1. Decide. The leader makes the decision alone based on available information and without consultation.
  2. Consult Individually. The leader seeks feedback from individuals one–on-one and then decides.
  3. Consult the Group. The leader presents the issue to the group, obtains their feedback, and then decides.
  4. Facilitate. The leader present the issue to the group and act as a facilitator. Describe the end-state and establish the parameters. Ensure the group is aligned with the company core values, goals and strategies.
  5. Delegate. The leader allows the group to make the decision without input from the leader. Provide resources as needed. This promotes employee development and autonomy.

When using the Decision Style approach keep in mind as the leader moves toward Delegate the cost and time to make the decision increases. This is known as Development Driven Decision Making. This is reserved for less critical decisions and those not sensitive to short timelines. This approach is used to develop other leaders in the organization to make future decisions. On the other hand Time Driven Decision Making is used for time sensitive decisions and those where the group may not have the expertise to make the decision. In either case expertise, confidence, and positive thinking is required along the continua.

Situational Factors in Making Decisions

There is no universal way to make decisions in all situations. The decision style depends on time available, leader expertise, the group's expertise, and importance of the decision. Vroom identifies eight factors that should be considered when making decisions.

  1. Decision Significance—The importance of the decision to the organization or project.
  2. Importance of Commitment—The importance of the group's commitment to the decision.
  3. Leader's Expertise—The leader's knowledge with regards to the issue.
  4. Likelihood of Commitment—The likelihood that the group would commit themselves to the decision.
  5. Group support for the Objectives—Group members support for the organizational objectives at stake.
  6. Group Expertise—Knowledge and expertise of the group in relation to the problem.
  7. Team Competence—The ability of the group to work together as a team to solve the problem.
  8. Likelihood of Disagreement—The probability that the group will disagree over the solution to the problem.

Decision making is a learned skill that a leader must practice using different styles in different situations. Sound decisions are based on objective data, in alignment with the company's "core ideology", business goals and strategies, incorporate the right input, and made on a timely basis. Gain an unfair advantage (against the competition); make sound decisions fast! It's cheaper and maintains organizational momentum.