In the first part of the SPEED Blogs, I dwelled on the process of idea generation and anticipation. However, ideas are like the sand on the ocean, plentiful. Deciding which to keep and act upon is the most critical step.
Many businesses get stuck in analysis paralysis and do not make quick decisions. Delayed decisions cost a lot to organizations. We can recover from an incorrect decision and change our course of action. Delaying decisions robs the most precious resource, time, from us. Recent history is replete with examples of how delayed decisions cost dearly to the industry leaders. Here are a few examples:
Intel made a decision not to make chips for mobile phones. They turned down Apple!
Microsoft shunned the idea of developing an operating system for mobile phones, letting Google develop the Android Platform.
Motorola became obsolete because of a delay in making a move into the Mobile Market.
So, it is essential to have a process for making quick decisions. Here is a recipe:
So, it is essential to have a process for making quick decisions. Here is a recipe:
For every decision, define acceptance criteria. It could include things like alignment with the purpose and values of the organization, cost of failure, upside, strategic fit, and others. Once the acceptance criteria are defined, evaluate every decision dispassionately and rely on the outcome. Programmed decisions have a better success rate than impromptu/ad-hoc decisions.
Follow the Rule of 37%: The best time to make a decision is when you've looked at 37% of the available options. Brian Christian and Tom Griffiths have proved this rule in their book Algorithms to Live By by citing many examples. Setting this limit avoids the inevitable analysis paralysis, a feature of any decision-making process. You rarely find any worthwhile information beyond the first couple of pages of Google Search!
Decisions get delayed because we are making them for someone else. Always ask yourself - Am I the one who should be making this decision? Delegating the decision-making to the concerned person not only empowers the person but also makes them accountable.
Mel Robbins developed the 5 Second Rule. The concept is to set yourself a time limit to make a decision. Count down till you reach the limit. Commit to decide in this period. Stick with the decision you make in the end.
David Allen wrote the landmark book, Getting Things Done. He recommends that we immediately take a baby step along the direction of our decision. This step has to be something that we need to do physically. This 2-minute action cements our commitment to the decision.
Set up a system for monitoring response. It helps us reduce the risk and excites the team with early success.
None of the decisions are good or bad. If we look at each of them as a learning opportunity, we gain a lot, even from failed ones.
Follow this recipe and expedite decisions in your organization.
Subodh
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