Organizational Adolescence
Making good choices as a young person can be challenging. One needs to develop personal values and create a bias for leaning in to one value over another. Without a foundation of values, decision making can be complicated. If one needs to be truly mindful in the process, a certain level of self-awareness is needed. On average, advanced brain functioning is not fully developed until the age of 25. I have seen a parallel for decision making within organizations.
Organizational decision making is often left to a singular leader, or a set of directors. Typically, executive leaders will come together, each with their own agenda – driven by their own personal and organizational goals – to assess, debate, and decide on the next opportunities. However, not all organizations have fully developed their internal decision-making skills. While there are often mission and vision statements, there is typically little in the way of operational support to aid one in making choices that are not singularly motivated.
Don’t read me wrong: I’m not suggesting that all organizational leaders are selfish. On the contrary, they typically are doing what they feel is best for the whole. However, if each leader is not assessing choices on the same set of ‘values,’ how can an organization best develop its bias for leaning one way or the other?
How to Start?
One way to begin formulating a decision-making standard practice is with the development of a decision-making policy. An organization must define a basis for HOW it will make decisions. The HOW can be defined by the governance levels (which leaders or teams will be involved in the process) and the criteria for making decisions. A next step is to start collecting information about WHAT the governance function will decide on: what initiatives are underway? what projects are waiting in the wings? what resources are available?
In my earlier missives I often characterize these two steps as the need to “rack and stack” decisions. Decisions address both those things that need to be continued or cancelled and those waiting on the launch pad which require a “go / no go” pronouncement. An organization may create many racks upon which to categorize its initiatives: strategic, operational, research & development, transformation, or run-the-business. There are scores of other possibilities (e.g., duration, cost, revenue, breath of organization engaged). The labels are less important than the agreement of leadership on the need for multiple categories by which to classify their decisions. Within each of the categories, leadership must also find a method and measure for stacking decisions to define a priority for approval.
If one can classify and categorize their initiatives – hopefully tightly coupled to their strategy – they will be able to realize long-term success. Getting to done requires people and process. Technology can be useful (once process is established), however, no tool will be able move an organization closer to their goal without the commitment of people and a defined process.
Apples v. Oranges
Is it better for the corporation to launch an initiative that will deliver $1,000,000 in two years for operations, or launch a six-month R&D initiative that returns just $50,000? ROI alone cannot determine the course. For example, the R&D project produces a faster return and will contribute to the growth of operations. Although it has a lower direct financial return, R&D may be funded first if there is a process and method that allows executives to see their opportunities, clearly articulate the decision levers, and provide support for making objective decisions.
Will it serve the university better to expand their marketing capabilities to draw in more students and stem the losses of undergraduate enrollments? Or would it be better to tap further into existing markets by leveraging more financial aid opportunities to remove the barriers of entering post-secondary school? One approach may have a quicker impact; one may have a bigger economic impact.
Without a values rubric (that contains multiple decision-making inputs) for comparing apples to oranges, organizations find themselves trying to choose between in-comparable choices.
Where to Turn?
TSI relishes the opportunity to help its corporate and higher-education clients solve these challenges. Our Effective Program Management service offering, which includes portfolio management, addresses the approaches for creating a rubric, collects information about what is in process and what is coming, and supports leaders making decisions based on objective self-aware information of a matured organization. Our proven practices have helped institutions from coast-to-coast. If you are interested in hearing more about project prioritization or portfolio management, contact me at cmanello@transforming.com and I can help you see where TSI can support your success.
