The Art of Decision Making

Decision making is a form or art expressed by everyone, from the top down in any organisation. The organisations that focus and train their staff on being decisive have a more dynamic and fluid approach in working and often are the ones who suffer less as the organisation grows and more hierarchal levels are introduced.

It’s important that we look at decision making in perspective and relative terms because although the inherent nature of making decisions is the same in humans, the impact that it can have from business to business and the size of a business can vary significantly.

So here is my short take on the culture of decision making within: 

• Corporate
• Startups & SMEs
• Non Profit & Public

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Corporate 

From my experience in corporate we have a “saving our backside” culture where majority of managerial positions up to senior management level simply do not “want” to make decisions. I say “want” in inverted commas because these individuals can make decisions but it is a conscience decision to neglect their responsibility. Instead they deflect or look at opportunities to make collaborative decisions in case of any backlash. It’s essential to point out here that I am not talking about day to day tasks, I am referring to when decision makers leave their comfort zones.

This majority I am talking about will never penetrate past the senior management level in corporate organisations. The minority who do make decisions usually end up into one of 3 categories:

1. Reaching executive levels within corporate
2. Leaving the corporate world to engage in personal ventures or sitting at director levels in SMEs
3. Made redundant (Because not all corporates want you to make decisions! It is a mechanism of control)

Startups and SMEs

In this sector it can be the complete opposite to corporate, where you have too many decision makers and this can become a clash of personalities and direction. It is no coincidence that you will know at least one (or three) local stories of business partners who started off as friends and then split their organisation. It is such a common problem that it’s just not highlighted like it was before, just like they don’t highlight boy bands when they breakup!

However, it’s important to note here that decision makers in this sector take a significantly higher risk on their shoulders, one bad hire or contract that goes south could undo years of hard work and bankrupt an organisation or push it back leading it to re-build.

So decision makers here are more cautious, careful and strategic in my opinion. They are mostly looking at the long term gain but the short term impact; if these two do not add up to steer the organisation towards the right direction then the decision will be made accordingly.

Non Profit & Public

This is an interesting sector to say the least. I have had mixed experience within this sector; it would be fair to say that there are people who have the corporate mentality, the startup and SME mentality. This is because the sector is made up of those people. One thing however which is clear is that most people within this sector are not equipped to be making the decision they are, for example, within the charity sector people who started off to help a small group of people now manage pots of millions of pounds with no experience of running global organisations; it is like an inheritance. This is never a good thing as they are indecisive and this brings about wastage and problems throughout the organisational culture and structure.

In the public sector there is no urgency, decisions take far too long to make and when they have been made the likelihood is that they will be radically changed within a period of time, costing the organisation more money and creating uncertainty within the organisation. Why does this happen? Because there are opposing decision makers who are trying to stretch the direction. Also within this sector control is harder because front end employees and lower level staff are required to make integral decision without the necessary training or support mechanisms, this is why we see mistakes that cost people their jobs so often.

This sector in general is around 3 years behind the others, organisation have become cumbersome and ridged due to top level management and there are no real signs of this moving ahead of the curve at this point.

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So why is is important to understand decision making in these sectors?

If you understand the mentality of the people working in these sectors then the likelihood for you to progress within them or work with companies within these sectors will be greater.