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Decision Quality and the Dialogue Decision Process

Decision Quality and the Dialogue Decision Process. Decision Quality. We will discuss ways for an organization to enhance the quality of its major decisions. Strategic versus Operational Decision-Making Elements of High-Quality Decisions Efficient Decision-Making Processes.

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Decision Quality and the Dialogue Decision Process

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  1. Decision Quality and the Dialogue Decision Process Decision Quality

  2. We will discuss ways for an organization to enhance the quality of its major decisions. • Strategic versus Operational Decision-Making • Elements of High-Quality Decisions • Efficient Decision-Making Processes 1.02 • Decision Quality and DDP

  3. Making Strategic Decisions Managing Operations “Running well on the chosen road” Decision-makers are called on to perform two fundamentally different tasks. “Choosing the right road” 1.02 • Decision Quality and DDP

  4. Required Skills Making Strategic Decisions—“Decision Focused” Managing Operations— “Results Focused” Skills for effectively managing operations can be counterproductive in making major decisions. • Focuses on critical issues • Considers long time horizons • Accounts for uncertainty • Chooses among significantly different alternatives • Attends to detail andfollow-through • Concentrates on near-term performance • Ignores uncertainties—“Let’s try it & adjust as we go” • Avoids new alternatives—“Let’s get going!” “Operational bias” can degrade decision quality. 1.02 • Decision Quality and DDP

  5. Quality of Operational Decisions Good Bad Likely Failure LikelySuccess Good Quality of Strategic Decisions Hit or Miss Bad The quality of strategic and operational decisions can determine the organization’s success or failure. 1.02 • Decision Quality and DDP

  6. We will discuss ways for an organization to enhance the quality of its major decisions. • Strategic versus Operational Decision-Making • Elements of High-Quality Decisions • Efficient Decision-Making Processes 1.02 • Decision Quality and DDP

  7. • • • • • What are the primary challenges* you see in decision-making in organizations you’ve worked with? *Or, what are the characteristics of great decisions? 1.02 • Decision Quality and DDP

  8. Meaningful, Reliable Information Clear Values and Trade- offs Creative, Doable Alternatives Elements of Decision Quality Logically Correct Reasoning Appropriate Frame Commitment to Action Achieving quality in each of six elements produces quality in the overall decision. Like a chain, overall quality is no stronger than the weakest link. 1.02 • Decision Quality and DDP

  9. 0% 100% A “spider” diagram helps gauge decision quality at any point in the decision-making process. 3 Meaningful, Reliable Information 4 Clear Values and Trade-offs 2 Creative, DoableAlternatives Decision Quality 5 Logically Correct Reasoning 1 Appropriate Frame 6 Commitment To Action The 100% point is where additional effort costs more that it is worth. 1.02 • Decision Quality and DDP

  10. We will discuss ways for an organization to enhance the quality of its major decisions. • Strategic versus Operational Decision-Making • Elements of High-Quality Decisions • Efficient Decision-Making Processes 1.02 • Decision Quality and DDP

  11. Did you consider… Howabout … When do you assume that … I was thinking, why don’t we look at …? Delivering quality is difficult in a decision-making process based on advocacy. Yes! I have these Data… 1st quarter. Hmmm; goodpoint! Advocacy processes typically bias information and ignore alternatives. 1.02 • Decision Quality and DDP

  12. Decision Board Members: Decision-makers Responsibilities: “Declare” decision, approve frame, provide values and trade-offs, and make decision Selection criterion: A decision by this group will “stick” Decision Board Project Team The Dialogue Decision Process establishes clear roles for decision-makers and project staff. Decision Team Project Team Members: Analysts and subject-matter experts Responsibilities: Develop frame and alternatives, assess information, evaluate alternatives, plan implementation Selection criterion: Recognized by decision board as credible experts and analysts 1.02 • Decision Quality and DDP

  13. Dialogue Decision Process ApproveAlternatives Recog-nizeSituation ApproveFrame ApprovePlan MakeDecision DecisionBoard Frame Alternatives Plan Evaluated Alternatives Evaluated Alternatives AssessSituation DevelopAlternatives EvaluateAlternatives Plan forImplementation ProjectTeam Decision quality is achieved through structured interactions between decision-makers and staff. The actual decision situation dictates the appropriate number of interactions. 1.02 • Decision Quality and DDP

  14. People Process Content 3 Information 4 Values Decision Board 2 Alternatives 5 Reasoning Decision Quality Project Team 1 Frame 6 Commitment In summary, decision quality is based on quality in the people, process, and content. 1.02 • Decision Quality and DDP

  15. Appendix 1.02 • Decision Quality and DDP

  16. Meaningful, Reliable Information Clear Values and Trade- offs Creative, Doable Alternatives Logically Correct Reasoning Appropriate Frame Commitment to Action An interactive approach is designed to overcome common impediments to decision quality. • Uncertainty ignored • Not “grounded” in reality • Difficult to trade off • Not defined • Not communicated • Not compelling • Born of delusion or pride • In the “comfort zone” • Too similar Elements of Decision Quality • “Groupthink” • Too simplistic • “Analysis paralysis” • Lack focus • Wrong scope • Wrong people • Wrong perspective • No alignment • Unable / unwilling to implement • “No action / no decision” 1.02 • Decision Quality and DDP

  17. Corporation DQ Commitment Values Sectors DQ Frame Commitment Commitment Values Business Units DQ Frame Commitment to broad strategic directions at the top sets the frame and values for lower level decisions. Lower levels are empowered to create value, aligned with top-level values and strategies. 1.02 • Decision Quality and DDP

  18. We should not confuse approval roles with the decision quality role. • Approval processes generally do not provide for a decision quality review. • Most approval processes spread responsibility without adding quality. • Thus typical approval processes cannot “inspect quality in,” even if thatis the purpose of the approval process. • For an empowered organization that strives for decision quality, we must rethink approval roles and requirements. Build decision quality in from the start; do not rely on approval chains for inspection. 1.02 • Decision Quality and DDP

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