Improve Problem-Solving, Information Gathering, and Understanding Intent.
Introduction: The Need for Common Sense
Business leaders often question why employees or direct reports don’t use common sense in decision-making. To help people make better decisions, we must delve into three crucial areas: solving the right problem, gathering all the available information, and understanding the intent.
- Solving the Right Problem: The Art of Asking the Right Questions
To prevent solving the wrong problem, make sure to:
1.1 Define the problem yourself
- Don’t rely on someone else’s definition of the problem.
- Encourage team members to clarify their understanding of the issue.
1.2 Stay close to the problem
- Engage with those who have firsthand experience of the problem.
- Encourage open communication and feedback channels.
1.3 Think about the problem from multiple perspectives
- Foster a culture of collaboration and diverse thinking.
- Utilize brainstorming sessions and workshops to explore various angles.
- Having all the Available Information: Observing, Orienting, and Analyzing
To gather all available information, consider the following:
2.1 Move the decision-making to the information source
- Empower frontline employees to make decisions.
- Implement a decentralized decision-making structure.
2.2 Observe and orient using John Boyd’s OODA loop concept
2.2.1 Observe
- Continuously gather information to build a comprehensive picture.
- Encourage team members to ask questions to understand the issue better.
- Filter out the irrelevant “noise” to focus on critical data.
2.2.2 Orient
- Foster a culture of self-awareness and understanding of cognitive biases.
- Provide training and development opportunities to improve analytical skills.
- Encourage employees to develop mental models that help replace biases and assumptions.
- Knowing the “Intent”: Moving Beyond Rules to Foster a Purpose-Driven Culture
Rather than relying on specific rules, understanding the intent behind decisions promotes a broader understanding that helps employees make decisions aligned with the organization’s goals.
3.1 Establish clear organizational values and goals
- Communicate the company’s mission, vision, and values consistently.
- Develop a shared understanding of the organization’s strategic direction.
3.2 Promote a culture of trust and empowerment
- Encourage employees to take ownership of their decisions.
- Provide support and guidance while allowing for autonomy.
3.3 Develop guidelines and frameworks for decision-making
- Create decision-making frameworks that emphasize the organization’s intent and values.
- Offer tools and resources that help employees navigate complex decisions.
Conclusion: Achieving Organizational Clarity and Empowering Decision-Making
Ask yourself these questions to determine if your team is making common-sense decisions:
- Are they solving the right problem?
- Do they have all the available information?
- Do they know the intent, and is there organizational clarity?
If you find something missing in these areas, address it and empower your team to make better decisions. Embrace a culture of collaboration, open communication, and trust, and watch your organization’s decision-making processes improve.
Copyright (c) 2021, Marc A. Borrelli
Recent Posts
Do You Understand Your Costs to Ensure Profitability?
You can only determine profitability when you know your costs. I’ve discussed before that you should price according to value, not hours. However, you still need to know your costs to understand the minimum pricing and how it is performing. Do you consider each jobs’ profitability when you price new jobs? Do you know what you should be charging to ensure you hit your profit targets? These discussions about a company’s profitability, and what measure drives profit, are critical for your organization.
Sunk Costs Are Just That, Sunk!
If you were starting your business today, what would you do differently? This thought-provoking question is a valuable exercise, especially when it brings up the idea of “sunk costs” and how they limit us. A sunk cost is a payment or investment that has already been made. Since it is unrecoverable no matter what, a sunk cost shouldn’t be factored into any future decisions. However, we’re all familiar with the sunk cost fallacy: behavior driven by a past expenditure that isn’t recoupable, regardless of future actions.
Do You REALLY Know Your Business Model?
Bringing clarity to your organization is a common theme on The Disruption! blog. Defining your business model is a worthwhile exercise for any leadership team. But how do you even begin to bring clarity into your operations? If you’re looking for a place to start, Josh Kaufman’s “Five Parts of Every Business” offers an excellent framework. Kaufman defines five parts of every business model that all flow into the next, breaking it down into Value Creation, Marketing, Sales, Value Delivery, and Finance.
Ideation! Harder Than It Sounds
Bringing in new ideas, thoughts, understanding, and logic is key as your organization faces the challenges of a changing environment. But when you do an ideation session in your organization… how does it go? For so many organizations, many times, after a few ideas have been thrown out and rejected, the thought process slows down very quickly, and a form of hopelessness takes over. How does your organization have better ideation? I’ve come across a new approach with a few teams lately.
Recruit, Recruit, Recruit!
An uptick in business has begun this quarter, and companies are rushing to hire to meet this surge in demand. What amazes me is how many are so unprepared to hire. Continual recruiting is key to the survival of a company. It isn’t the same thing as hiring—continuous recruiting is building a pipeline of people that you would hire if you needed to fill a position, or “A players” you would hire if they were available.
We All Need Clarity
If your organization is focused on obscurity over clarity, whether intentionally or not, your “A” player employees are vulnerable. There is a looming talent crunch. As we start to emerge from COVID, demand is increasing, and many are scrambling to fill positions to meet that demand. Headhunters and recruiters are soon going to be calling your key “A” employees. Have you been giving them a reason to stay?
Not Another **** Meeting
As Leonard Bernstein put it so well, “To achieve great things, two things are needed: a plan and not quite enough time.” Your meetings can be shorter, more fruitful, and engaging, with better outcomes for the organization, employees, and managers. It’s time to examine your meeting rhythms and how you set meeting agendas. This week, I break down daily, weekly, monthly, quarterly, annual, and individual meeting rhythms, with sample agendas for each.
Is Your Company Scalable?
Let’s start here: Why should your company be scalable at all? If your business is scalable, you have business freedom–freedom with time, money, and options. Many business leaders get stuck in the “owner’s trap”, where you need to do everything yourself. Sound familiar? If you want a scalable business that gives you freedom, you need to be intentional about what you sell, and how.
Are you ready for the Talent Crunch?
Companies are gearing up to hire. Unfortunately, many are competing within the same talent pool. Some experts are currently predicting a strong economic recovery starting in May or June. But as the economy booms, there is going to be fierce competition for talent. How will you fare in the looming talent crisis? Your organization should be creating a plan, now, so you can attract the talent you need in the year ahead.
The “Flaw of Averages” Causes Havoc for Businesses
Discover how understanding the limitations of averages and embracing probabilistic thinking can improve decision-making and risk management in business.
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