All entries for Monday 16 April 2012

April 16, 2012

Correct vs wrong decisions

Question Mark manIs there any correct or wrong decision?

Many could argue on that but I will share my opinion on that based on my personal experience from Robust Decision Making module.

Well a decision that is consider to be correct would be a decision that followed a process to be made and it satisfies company’s needs priorities and vision; thus the decision that is wrong doesn’t follow ay process and doesn’t satisfies the factors that mentioned. However, while trying to reach a decision, there are many ways of doing it as well as techniques to be used.

I think we can all agree that a wrong decision or insufficient decision if you like, is the decision that doesn’t line up with the overall direction of the company or/and it is not based on a logical process which has consider between alternatives etc for getting the group members into the same direction, or even is based on wrong information.

Nevertheless, I don’t know if we could agree that a correct decision is the one that helps for achieving the vision, satisfies the company’s needs etc. Because from my experience same processes and techniques could be used for reaching to a decision from two different companies that have different needs, priorities and vision. So that what robust decision making is. It is not the correct decision but the most efficient, well structured and well supported decision which includes all or the most information.

Why is that important?

It is important because if you want to work in a team for coming up to a decision you need to convince first the team members by following a logical structure (e.g. organizing your time, collecting and criticising information, analysing techniques that could be used etc.), and then you need to convince the board of directors or other member from your organization why they should listen to you and make that decision and not the other.

A practical and simple example would be: imagine two different companies the one has a culture that takes high risks (risk-lovers) in order to reach to higher yields etc. like investing companies, and one that cares more about sustainability thus doesn’t risk (risk-averse) much. If they both have to make a decision on investing in a project between two options the first company will take the riskier one with higher yields (if all the other factors are the same) and the other company the less risky even if the yields are lower. Is here any correct or wrong decision? Well you can add your opinion on that.

How can we use this in the future?

Well when you are about to come up to a decision make sure you know the direction and nature of your organization, then make sure you structure your decision process for better time management, and collect all the information that will provide you the most suitable and robust decision for your company.

April 2012

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