A635.2.3.RB
How
Companies Can Make Better Decisions, faster.
After viewing the video, reflect on the following
questions in a well-written post on your Reflection Blog.
- Marcia Blenko argues that decision effectiveness correlates positively with employee engagement and organizational performance. How do you think that employee engagement relates to decision effectiveness?
- What
are some impediments to good decision making?
- Blenko
suggests that there are four elements of good decisions: quality, speed,
yield, and effort. In your opinion, is there anything missing from this
list?
- What
can you take away from this exercise to immediately use in your career?
Once you have reflected upon these questions, list any
other questions or insights that have come to you as a result of this exercise.
It
has been my experience that decision effectiveness does correlate positively
with employee engagement and organizational performance. Effective decisions do occur more often when
employees are happier and they have total buy-in.
Marcia
Blenko laments, “How did you come to
focus on decision-making as the key driver of organizational performance? Well you know, Sarah, a lot of this
comes from our experience over the years
working with companies. But then over the last five years we've done a
number of research projects that
are really backed up with some data of the hypotheses. One of the things we've noticed over the years is the companies that are better at
making and executing decisions really do seem to operate at a much faster
metabolism and have better financial results. So, we actually did conduct this
research study across the big six markets. We are in the US, UK, France,
Germany, China, and Japan. All different sized companies and what we found is a
very high correlation between decision effectiveness and financial performance.
However, we cut the data revenue growth return on capital or total shareholder
return. We had a ninety-five percent-plus correlation with the decision effectiveness.
Interestingly, we also saw a very high correlation between decision effectiveness
and employee engagement which I guess shouldn't be surprising that companies
where it's easier to make decisions and get things done or more stimulating places
for employees to work. I think this is
really at the heart of our approach to organization thinking.” (Blenko, 2010)
The
biggest impediments to good decision making is definitely indecision,
negativity and nay-sayers. Secondary to
that the need to have employee and stakeholder buy-in.
According
to Blenko, There are four components to good decision making: “Quality is the first and the one that's very
intuitive. Everyone's always saying, ‘Well was it a good decision?’ and that's
right. I mean in retrospect, did we actually make good high quality decisions?
But there's three other factors of decision effectiveness that matter too. The
second is speed. How quickly do we make
important decisions relative to our competition? The third is yield. To what extent do we
execute decisions the way we intended? The fourth is something we call effort.”
(Blenko, 2010)
So,
is there anything missing? I am going to
say “no”. I believe that Blenko is
comprehensive and spot on when it comes to good decision making.
As a
take-away, I will blend these four factors during my decision making moving forward. I have sadly only used a few of them, in
concert, in the past.
Reference
Blenko, M. (2010, October 13). How companies can make better decisions, faster. [Video File].
Retrieved from https://www.youtube.com/watch?v=pbxpg6D4Hk8
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