A manager faces many issues that require a decision to be made. Some decisions are programmed. In other words, they are routine and follow written guidelines that are already established based on routine needs . Other decisions are non-programmed. Non-programmed decision making is made in response to unexpected issues that arise (Jones & George, 2011). This process requires thought, option assessment, alternative review, and impact analysis in addition to learning from the results of a chosen decision.
Relying solely on intuition can result in negative impact to an organization and its goals. Thus there are six steps that can be used in a decision making process to ensure an optimum decision is achieved that will benefit a company and its goals. Being cognizant and following through in these six steps is essential to a manager’s success in her daily challenges.
The Six Steps
1. Recognize the Need
Recognizing the need for a decision is the first step in this process. Identification of the issue, the impact on the organization, risk, and resources should be considered when considering the need for a decision.
2. Develop Alternatives
Several options for solutions should be generated to resolve the unexpected threat. Going blindly with the first topic thrown out there can lead to missed opportunities for more efficient and compliant options. Acquiring numerous alternatives is simpler than it sounds. Have a roundtable with several functions and brainstorm together.
3. Review Alternatives
Next, the alternatives should be reviewed to find the optimum decision that will benefit the company based on the impact the issue has on the organization, the priority of the threat, and the resources available to create the solution. When assessing the options available, four areas should be taken under review;
- legality
- ethicalness
- economic feasibility
- practicality
(Jones & George, 2011).
Legality is contemplated to ensure the solution does not violate law, ethicalness is measured to ensure the decision does not adversely affect stakeholders, economic feasibility is reviewed to ensure the solution is cost-beneficial to the company, and practicality must be deliberated to determine if the company possesses the resources to bring the solution to life.
4. Choose the Alternative.
This is rather self-explanatory. You’ve developed alternatives, discussed them, applied assessments, so the next step in the process is choosing the alternative based on the assessment of options.
5. Implement
Implement the solution to resolve the threat.
6. Monitor
Finally, and most importantly once the solution is executed, the manager should review whether the solution met the initial expectations of resolution, learn from feedback and develop strategies that will assist in future decision making processes based on the results.
Applying The Six Steps
In my experience reviewing businesses, I’ve tracked and patterned issues that affect their organization’s compliance with regulatory laws it must follow. Thus, I am faced with non-programmed decision making daily. Every issue that arises is a threat to the organization and I must determine the issue’s impact to the company, the risk involved, the priority level of the issue, remediation costs, the communication matrix, the interim fix, and permanent fix.
My process for this decision-making is using all six steps. First, I recognize the need for a decision by validating any reported issue. Some reported issues are not true issues due to a reporting owner’s lack of understanding, or misinterpretation. Upon validating an issue, I determine options and solutions available to find reasonable solutions to the threat. I then collaborate with a team of process owners to assess the alternatives, and brainstorm additional alternatives with the team until a solution is agreed upon.
Every step requires taking into consideration legality of solutions, ethicalness, economic feasibility by performing cost-benefit analysis and comparing it against our assigned budgets, and well as practicality of the solution to determine if the resources are available to implement this solution.
Upon meeting all requirements, the team chooses the best solution for both an interim fix to mitigate remediation, as well as a permanent fix to eradicate the issue.
Finally, a time table is established for implementation of the solution based on the priority of the threat, and the solution is tracked for feedback to ascertain if our expectations were met. Each time expectations are not met the group should revisit the steps taken to make the decision and garners information to apply to future decision making to achieve a greater level of success.
As I always say-Don’t forget cross-impacts on issues. Consider ALL functions that could be impacted. Be proactive!
Conclusion
Managers will often face unexpected threats in their positions.. The application of the six step process to reach a decision can be cumbersome, however; it is the most methodical and thorough process to resolve issues and protect the organization.
References:
Picture www.forbes.com
Jones, G., & George, J. (2011). Contemporary Management. New York City: McGraw-Hill Irwin.