Decisiveness and When it Matters!
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Does decisiveness matter, if you want to progress up the organisation as a leader?
According to a recent Harvard Business Review article, the answer is yes. Research conducted over ten years looked at how CEO’s were recruited and what attributes contributed to superior performance in role. The researchers found four key attributes, one of which was decisiveness. Perhaps most interestingly, it wasn’t about the correctness of the decisions taken or the outcomes, but rather that the successful CEOs decides earlier, faster, and with confidence.
At T&P we know from our own data that the number of decisions passing across the desks of managers increases dramatically as we climb the corporate ladder. As one Director said to me, “The biggest shock when I became a Director was the sheer number of decisions I had to make – often with ambiguous or inadequate data.”
So, what should we be aware of when reviewing how decisive we are and whether we need to up our game?
Let’s review all the component parts:
Is it you who should make the decision? Consider whether you are taking on your team’s decision-making as well as your own, just to provide security for them. Your team may have brought the issue to you to decide but do you really need to delve into the details, take the time to understand it and weigh up the pros and cons before deciding? They are already immersed in the subject and know the issues. Consider whether you should push this back down the line, making them take responsibility for making the decision themselves. Running your decisions past the boss can be a learning opportunity for your team but if this shows no sign of stopping they may be passing the buck – in which case you may be better off having a rather different kind of conversation.
How much time should you spend on the decision? This involves considering whether there is a deadline to meet, the level of detail you need to go into, and whether there is anyone to consult. If you want to progress to senior roles, you will often need to stay at a high level. Consider which key stakeholders might be impacted by the decision. If the input of others is required, do you consult or collaborate? Collaboration is great, but it takes time – and may not be appropriate if you are making a decision where there are winners or losers. Consider instead consulting – listen to people, but making the decision for yourself.
With timescales, sometimes these aren’t clear – but there is very likely to be a cost for delaying the decision. This can be particularly vital when the decision concerns an opportunity. Sometimes the worst decision is to make no decision at all or decide too late and have lost the opportunity or advantage you might have gained over your competitors. Effective people at the top of the organisation don’t delay their decisions – do you?
How much ambiguity and risk is there?
If you are concerned about a lack of data available to you or the time you have available to research the issue, consider whether there is someone already well versed in the subject matter you can talk to right away. Or maybe there is someone who just loves researching and will eat up the job of producing a high-quality summary. If so, use them. It’s a great development opportunity and a recognition of their talents.
That said, consider how much data is really needed for this decision and whether collecting data will have a significant payback. Sometimes we look for the perfect answer when all that is required is a commercially viable decision that will move things along. The most effective CEO’s will often need to decide when only 70% of the data is available. They accept that not all their decisions will be right – they’ll make a decision and then keep a sharp focus on what happens. In a fast-moving world, sometimes the best approach is “Ready – fire – aim.” Many decisions can be amended or undone, but lost opportunities stay lost.
Interestingly, the research found that while poor decisions were the cause of a third of CEO firings, the remaining two-thirds left their organisations for being indecisive. I also suspect the one-third made poor decisions and left them – rather than taking immediate corrective action once it became apparent that the decision was less than optimum.
TAKE AWAY
Next time a decision hits your desk run through this article in your mind. Can you make decisions like a CEO? And remember – it’s better to decide and avoid the cost of delay as there’s always plan B!