Decision Making To Make A Difference

There is power in decision making. One decision can make or break the direction of an individual and an organization. In fact, when companies make better decisions they get better outcomes. One example of this was when in 1914 Henry Ford decided to increase his employee's wages by doubling them.

Alex Taylor III explains that "with their pay doubled, Ford’s autoworkers could now afford the very products they were producing. This (decision) triggered a consumer revolution that helped create the wealthiest nation on earth. Acting on the advice of his devoted lieutenant, James Couzens, Ford decided to take radical action. On Jan. 5, 1914, Ford and Couzens summoned newspaper reporters to the plant to publicize changes in employment policies at Highland Park that they hoped would improve employee retention. First, the company would reduce the workday from nine hours to eight. Second, it was moving to three shifts a day instead of two, opening up lots of new jobs. But the big news came in the third announcement: Subject to certain conditions, Ford would more than double the basic rate of pay to $5 a day. The 11-year-old company was willing to spend an additional $10 million annually to improve productivity and the lives of its workers.

The news spread quickly beyond southeast Michigan. “A magnificent act of generosity,” declared the New York Evening Post. But the Five-Dollar Day turned out to be an excellent investment. Within a year, annual labor turnover fell from 370% to 16%; productivity was up 40% to 70%. Between 1910 and 1919, Henry Ford reduced the Model T’s price from around $800 to $350, solidified his position as the world’s greatest automaker, and made himself a billionaire.

And by raising wages, he expanded the overall market for the Model T. As Ford said to reporters that January: “We believe in making 20,000 men prosperous and contented rather than follow the plan of making a few slave drivers in our establishment millionaires.”

Henry Ford made a courageous choice, and his company, his employees, and the world benefited from it. The power of one decision is profound. Various internet sources estimate that an adult makes about 35,000 remotely conscious decisions each day (in contrast a child makes about 3,000).  This number may sound absurd, but in fact, we make 226.7 decisions each day on just food alone according to researchers at Cornell University (Wansink and Sobal, 2007). 

Experience Questions: Do you consider yourself a great decision maker? What lessons have you learned from both the good and bad decisions that you have made in your life?

Eve - A Decision That Cost Her The Business

In the Bible book of Genesis, the reader gets to watch as Adam and Eve make a decision that will impact the rest of their lives and mankind. The Bible records these words in Genesis 3:1-4.

"Now the serpent was more crafty than any of the wild animals the Lord God had made. He said to the woman, “Did God really say, ‘You must not eat from any tree in the garden’?” 2 The woman said to the serpent, “We may eat fruit from the trees in the garden, 3 but God did say, ‘You must not eat fruit from the tree that is in the middle of the garden, and you must not touch it, or you will die.’” 4 “You will not certainly die,” the serpent said to the woman. 5 “For God knows that when you eat from it your eyes will be opened, and you will be like God, knowing good and evil.” 6 When the woman saw that the fruit of the tree was good for food and pleasing to the eye, and also desirable for gaining wisdom, she took some and ate it. She also gave some to her husband, who was with her, and he ate it."

Eve made a bad decision. Her one bad decision led to another bad decision when she gave some of the fruit to her husband. Every leader will make bad decisions in the course of leading a life and a business. However, it is essential that leader learn the art of making the right decision at the right time.

Eve's Enlightenment to Discerning Decisions:

1. Good Decisions Happen When We Don't Question Fundamental Truths.

Values and good truth should shape every decision. Eve made a bad decision when she had bad information. She began to question the fundamentals that God had given as instructions on how to take care of the Garden. God's wisdom is eternal, and people who want to make significant decisions should embrace the fundamental truths that have been proven throughout generations and in different seasons.

Experience Question: What fundamentals do you know to be true right now that could help you make a better decision for your life and business?

2. Good Decisions Happen When We Understand the Consequences of Decisions.

Eve responds to the serpent but exaggerates on the result of eating the fruit. God never told Eve what the consequences would be if she ate the fruit. Eve conjured up the consequences, and she was wrong. The consequence of her decision was not death, but separation from God - which was worse. When a leader understands correctly the consequences of their decisions, it helps to shape better decisions.

Leadership author Tom Jones wrote a powerful list of question for a leader to consider to better understand the consequences of the decisions that they make. He wrote, "It is clear that when a leader makes a decision – for better or worse – it affects those being led as well as the leader personally. As a result of this reality (of potential long-term consequences) I have explored the following questions as they may be useful when making decisions:

Is it ultimately good or just currently popular?

Is the choice I am considering really valuable or simply cheap/inexpensive?

Is it a smart investment or just a quick (hasty) fix?

Is it ultimately right or just barely legal?

Is it true or just a matter of opinion?

Is it just somewhat risky or is it actually dangerous?

Is it worth fighting against or should we run from it?

Is it long-lasting or only temporary?

Experience Question: Do you consider the outcomes and consequences that might happen from a decision that you make?

3. Good Decisions Happen When We Get Wise Counsel.

Every leader needs counsel. There are just too many decisions to make and too much to get done in a business for a leader to do it alone. However, the choice of counsel is the first choice that often dooms a leader. Many leaders make mistakes because they are listening to the wrong people. Eve decided to listen to the serpent, and the serpent gave counsel to get Eve confused. The Bible reminds that bad company corrupts good morals. Every leader who wants to make great choices must consider the counsel that they choose.

Experience Questions: Do you have the right kind of counsel around you? Do they share your values, vision, and perspectives?

4. Good Decisions Happen When We Have The Right Desires.

Wrong desires often lead to wrong decisions. Eve became tempted when Satan told her that eating the fruit would make her more like God. Eve's temptation is nothing new. Every leader can be tempted in their decision making to make decisions for ulterior motives. Executive leader William Bishop wrote, "All leadership styles are not created equally and are not efficaciously applicable in all situations. A leader must first understand his motives and personality before selecting a style, and he must equally understand the impact of that style on his people. This is a matter of knowing the culture and situation." A leader who will make great decisions is one who makes those decisions with the right spirit and with the right perspective.

Experience Question: What are the temptations that could cause you to make bad decisions and choices for your company?

Leaders have the power to shape their organization through the decisions that they make. In fact, one decision can make a difference in the shape and form of an organization. Your company is calling out to as a leader to make a decision that will make a difference today and in the company's tomorrows.

ABOUT THE AUTHOR: 

Ken Gosnell is CEO and Servant Leader of CXP (CEO Experience). He serves leaders by helping them to have great experiences that both transform them and their organizations that enable to go further faster. He has worked with hundreds of CEOS and their leadership teams to enhance their strategic, operational and people accomplishments. He is an author, coach, and strategic partner with CEOs. He is married to Shonda, and they have four children. You can connect with him at https://www.dhirubhai.net/in/kengosnell/

He has also created the CEO Experience Impact Assessment. This assessment helps leaders learn the areas of their leader that they must improve to go forward. Get your score by taking the assessment here.