Discover how understanding the limitations of averages and embracing probabilistic thinking can improve decision-making and risk management in business.
Boosting Common Sense Decision-Making in Your Organization
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
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