How to enable your decision making effective,

1. Decide & Deliver
KNOW YOUR DECISION EFFECTIVENESS
1

2. Five steps to improve decision
effectiveness01
Assess
decision
effectiveness
and
organizational
health
02
Identify the
critical
decisions
03
Set up
individual
decisions for
success
04
Align
organization
to support
decisions
05 Embed decision capabilities and sustain results
2

3. What is Decision Effectiveness
Decision
Score
Quality Speed Yield Effort
Decision = Performance Quality, Speed and Yield
reinforce one another
Effort is a drag There are few trade-offs
Remember
3
There is always room for
improvement

4. Where are the decision barriers
 Structural sclerosis
 Decision ambiguity
 Process paralysis
 Data dysfunction
 Misaligned measures
 Blurred vision
 Consensus overdose
 Talent deficiency
 Behavior breakdown
 Performance anemia
4

5. How to tackle Organization
decision challenge
5
Decision Score Card
• It will tell how well or poorly you‟re doing on decisions. It includes
assessment of all the elements of decision effectiveness (decision
quality, speed, yield)
Organizational Score cards
• It shows the element of the organization that may be hindering
people making decisions quickly and implementing them
effectively

6. The Decision scorecard “quick test”
When making critical decisions, we choose the right course of action:
4 - > 75% of the time
3 – 51 – 75% of the time
2 – 26 – 50 % of the time
1 - <= 25% of the time
1 2 3 4Quality - Q
We make critical decisions:
4 – Much faster than competitors
3 – Somewhat faster than competitors
2 – Somewhat slower than competitors
1 - Much slower than competitors
Speed - S
We execute critical decisions as intended:
4 - > 75% of the time
3 – 51 – 75% of the time
2 – 26 – 50 % of the time
1 - <= 25% of the time
Yield - Y
In making and executing critical decisions:
4 – We put in exactly right kind of effort
3 – We put in some what too much/ too little vs. amount we should
2 – We put in way too much/ nowhere near effort vs. amount we should
1 – We are off the charts
Effort - E
> 25 = Top quartile – You‟re doing great, keep it up
21-25 = Second quartile – Pretty good, but could be great
16-20 = Third quartile – Worse than 50% of companies, time to ACT!
15 or less = Bottom quartile – Major decision reboot required!
Total Score
[ Q * S * Y * (E/4)] _ _ _ _ _ _ _ _
1 2 3 4
1 2 3 4
1 2 3 4
Instruction
 Read each question and check the score
that corresponds to the answer that bests fits
your organization
 To get your total score, multiply the first 3
scores together, Then multiply that result by
the Effort score divided by 4
 For example, if you circle 3,4,2,3, you would
calculate your total as 3*4*2*[3/4] = 18
Copyright 2010 Bain % Company, Inc. No rights reserved
6

7. Decision scorecard ”read out” example
Quality - Q
Speed - S
Yield - Y
Effort - E
Low- quality
decisions
Decision
speed slower
than
competitors‟
Poor
execution of
decisions
Too much /
too little
effort
High- quality
decisions
Decision
speed faster
than
competitors‟
Strong
execution of
decisions
Exactly right
amount of
effort
1 2 3 4
Top quartile
> 25
Second
quartile
21-25
Third quartile
16-20
Bottom
quartile
15 or less
Total score
versus
benchmark
Total Score (decisions) Multiply Q * S * Y * E/4 = 18
7

8. Organization scorecard “quick test”
Structure
Roles
Processes
Information
Measures
and
incentives
Decision
style
People
Behavior
Culture
Our structure helps, rather than hinders, the decision most critical to our success
Individuals are clear on their roles and accountabilities in our most critical decisions
Our processes are designed to produce effective, timely decisions & action
The people in critical decision roles have the information they need when & how they need
Our measures and incentives focus people on making and executing effective decisions
We make decision in style that is effective ; e.g. a style that appropriately balances
inclusiveness with momentum
We put our best people in the jobs where they can have the biggest decisions impact
Our leaders at all levels consistently demonstrate effective decisions behaviors
Our culture reinforce prompt, effective decisions and action throughput the organization
1 2 3 4
1 2 3 4
1 2 3 4
1 2 3 4
1 2 3 4
1 2 3 4
1 2 3 4
1 2 3 4
1 2 3 4
Instruction
 Read each question and
check the score that
matches your level of
agreement/disagreemen
t with the statement
 1= Strongly disagree , 2=
Disagree more than
agree , 3= Agree more
than disagree, 4= Strongly
agree
 To get your total score,
add up your individual
score
> 35 = Top quartile – You‟re doing great, keep it up
21-35 = Second quartile – Good but room for improvement
16-20 = Third quartile – Organization is serious barrier to decisions
15 or less = Fourth quartile – Major organization transformation required
Total Score
[Add all scores] _ _ _ _ _ _ _ _
(Min = 10, Max = 40)
Copyright 2010 Bain % Company, Inc. No rights reserved
8

9. Organization score card ”read-out” example
Structure
Structural
sclerosis
Blurred vision
1 2 3 4
Top quartile
> 35
Second
quartile
31-35
Third quartile
26-30
Bottom
quartile
10 - 25
Total score
versus
benchmark
Total Score (organization) Add all scores = 27
Decision
ambiguity
Process
Paralysis
Roles
Processes
Information Data
dysfunction
Measure &
incentives
Misaligned
measures
Priorities
Decision style Consensus
overdose
People Talent
deficiency
Behaviors
Behavior
breakdown
Culture Performance
anemia
Structural
alignment
Decision role
clarity
Productive
processes
Effective
information
Measures
that matter
Clear vision
Effective
decision style
Well deployed
talent
Role model
Behavior
Performance
passion
9

10. Why some decisions need more
management attention?
Complexity
•Decision involving many stakeholders or complex processes with multiple hands-off may
require a lot of attention and effort to get right
Degree of change
•If a decision is likely to be affected by a proposed change, such as a new organizational
structure, those involved will need to know how it is supposed to work in the future
Scope for improvement
•A decision that is not working probably needs more attention than that‟s going well
Utility as pilot
•Some decisions can be set as Pilot for improving decision effectiveness
10

11. Decision X- ray “snapshot”
Decision: [write decision here]
Decision
effectiveness
4 – Strongly Agree
3 - Agree
2 - Disagree
1 - Strongly disagree
4- Much faster
3 – Somewhat faster
2 – Somewhat slower
1 - Much Slower
4 – Strongly Agree
3 - Agree
2 - Disagree
1 - Strongly disagree
4 – Exactly the right amount
3 – A bit too much/little
2 – Way too much/little
1 – Off the charts
Quality
In retrospect, we made the right
decision:
Speed
Relative to competitors, we made
the decision:
Yield
We executed the decision as
intended:
Effort
The level of effort we applied was:
Organization strengths / barriers
Rating Comments
4- Strongly agree; 3- Agree; 2 – Disagree ; 1 – Strongly disagree
• Our structure facilitated making and executing the decision
well and quickly with the right effort
• Decision roles were clear and appropriate
• We used a robust decision process
• We had the right information at the right time
• People‟s objective and incentive reinforced the right
decision and action
• Participant had the right context to make and execute the
decision
• We used an appropriate decision style
• We had the right skills and talent in right decision roles
• Participant demonstrated good decision behaviors
• Our culture reinforced making and executing the decision
well
Copyright 2010 Bain % Company, Inc. No rights reserved
Instruction
 Select a decision
to X-ray
 Rate the decision
on quality, speed,
yield & effort
 Rate your level of
agreement with
each statement
on organizational
levers and note
comments to
bring your score
to life
11

12. Decision X-ray “day in the life”
Decision: [write decision here]
Process Month 1 Month x Month y Month z
Group or person 1
Group or person 2
Group or person 3
Group or person x
Group or person y
Group or person z
Step 1
Step 2
Step 3
Step 4
Step 5
Step 6
Step 7 Step 8
Step 9
Decision
Decision Decision
Implementation
Issue 2(e.g. revisiting
decision leads to
unnecessary loops)
Issue 1(e.g. unclear
criteria lead to rework in
input Issue 3 9e.g. follow up with
key group late in process sets
back timing
Issue 4 (e.g. late
engagement
with
implementer
leads to last
minute
changes /
delay
Instruction
 Sketch out
the basic
process
steps for
how the
decision
works today
 Highlight
issues and
disconnects
in callouts,
reflecting
on un
necessary
loops,
process
disconnects
and
alignments
issues.
12

13. Clarifying the “what-who-how-when” to
make critical decisions hum
What?
• Define the decision we are actually trying to
make
• Frame the decision in an appropriate way
• Split the decision into sub decisions if
necessary
Who?
• Clarify up front who will play what role in
each decision 9e.g., decision maker,
recommender.
When?
• Clarify timelines for decision and execution
and key milestones
• Create a decision calendar for ongoing,
interconnected decision
How?
• Install structured decision approach
• Design and specify:
- interaction
- Critical meeting
- Closure and commitment
- Feedback loop
13

14. Tips for Success 14
High performing organization have developed techniques for setting clear guidelines
on what Decision they are trying to make
 Start any discussion on decisions with a reminder of what you‟re
trying to decide
 Start every meeting with a single statement “ The purpose of this meeting
is to inform you about X, to discuss Y and to decide on Z
 Frame the decision in reverse
 Instead of asking is it profitable to bid at a particular price, Ask is it non-
profitable to bid at a particular price
 Make the decision explicit – and check to see if you are missing any
parts of the decision

15. RAPID ®, a practical tool for
decision roles
Input Agree
Recommend
Perform
Decide
Make final
decision:
"Commit the
organization to
action”
Recommend a
decision or an
action
Formally agree on a
recommendation;
must be consulted,
should not be ignored
Be accountable
for performing a
decision once
made
Provide input to a
recommendation;
must be consulted,
may be ignored
15
The acronym RAPID
– reflect the primary
roles in any decision
 Ensure the only one person has the D
 Limit the A roles & ensure that sign-offs
is on recommendation, not on the
decision
 Let key players know their exact goals
 Don‟t underestimate the – perform role
 When necessary be explicit about who
will decide RAPID roles

16. The how – elements of a best-
practice decision process
Structured decision
approach
• Conscious approach to decision: set criteria, consider relevant facts,
develop alternatives and makes a clear decision weighing all of these
1
Clear Steps &
sequence
• Logical steps and sequence for how decision roles and process will work
in practice
• Clear guidelines on how and when to escalate and when not to
2
Meeting &
Committee
• Key meetings required for the decision specified, with purpose and
participants clarified up front
• Appropriate committee reviews
3
Closure &
Commitment
• Final decision communicated to key parties
• Resources allocated (people & money)
• Execution plan in place(actions, accountabilities, milestones)
4
Feedback loops
• On going review of execution progress to drive fast corrective action or
replicate successes
5
16

17. 17
Use a structured decision approach
Agree on a criteria
Gather all relevant facts
Always ensure more than one alternative
Establish guidelines for steps & sequence (including
escalation)
Defines path for escalation
Never shoot the messenger
Be aware of maverick escalations
Design meeting around specific decisions
Distribute meeting material in advance
Mark them as
•Information purpose only
•For discussion & debate
•Decision & action
Allocate required resources
Rebalance team to assist in execution
Let people clearly know what decision is made
Close and commit
Act quickly on feedback
Devise feedback loops
Replicate successes
Establish feedback loops
TheHow–elementsofabestpracticeprocess

18. Tips for Success 18
 Separate the decision from the discussion of choices
 First consider relevant facts and proposed alternatives, Discuss whether
facts are sufficient and all the right alternative are on the table
 In separate session choose amongst the alternatives and plan
mobilization for execution
 Follow the rule of Seven for meetings
 Every person added to decision making group over seven reduces
decision effectiveness by 10%
 Track the timing as well as the level of bottleneck resources to
ensure effective execution
Top performing companies typically follow these practices:

19. Decision centered versus traditional
approach to organization
Traditional approach Decision – centered approach
HARD
Is our structure aligned with our
strategy?
Does our structure support the decision most critical to creating value?
Who should report to whom? What are the specific roles and accountabilities for our critical decisions?
Are our core business processes
effective and efficient?
Are our processes geared to produce effective, timely decisions and action?
So our information systems support our
business objectives?
Do the people in key decision roles have the information they need when and how
they need it ?
Is our compensation competitive with
peers?
Do our performance objective and incentive focus people making the right
decisions for the business?
SOFT
Do we have clear and compelling
mission and vision?
Do people throughout our organization have the context they need to make and
execute the decision they face?
Is our management style sufficiently
inclusive?
Are our people clear on our preferred decision style (directive, participative,
democratic, consensus)
Do we have an effective leadership
team?
Do our leaders at all levels consistently demonstrate effective decision behaviors?
Do we have a high performance
(sometime "customer-centric”)
culture?
Does our culture reinforce prompt, effective decision making and action
throughout the organization?
Are we winning the war for talent? Do we put our best people in the jobs where they can have the biggest impact on
decisions?
19

20. Embed decision capability
 Building the foundation of effective decision
 Make decision effectiveness a priority
 Align the top team and engage influential leaders early
 Build commitment through hands- on experience
 Ask the leader to co-create the plan
 Creating and sustaining momentum
 Apply good decision disciplines to improve decision effectiveness itself
 Celebrate decision and execution success – and nurture grass root pull
20

21. Embed decision capability
 Embed decision behaviors and capability
 Build new capability and skills
 Develop a repeatable model that can be applied throughout the business
 Use a “train a trainer” approach – and tailor training the training to the audience
 Help people learn through experience
 Share best practices
 Walk the talk
 Measure the Impact
21

22. Embed decision capability
 Pitfalls to avoid
 Don‟t start anything you‟re not prepared to finish
 Apply the tools to the difficult decisions, not just the easy ones
 Don‟t fudge the people issues
 Cut bureaucracy – don‟t„ add to it
22

23. Video from the creators 23
Step 01
Step 02
Step 03
Step 04
Step 05
The authors