Approaches to decision making (Part II)

Freedom of expression – in particular, freedom of the press – guarantees popular participation in the decisions and actions of government, and popular participation is the essence of our democracy.
                                                                                                                                                                                                                                                                                                                       Corazon Aquino

Introduction
A few weeks ago, we discussed two approaches to decision-making – the analytical approach which is the traditional approach; and the creative approach which requires venturing into the unknown to produce bold, creative and innovative solutions. The former, described as the rational decision-making model, is logical, systematic and analytical. It involves generating a list of alternative courses of action, and choosing from the alternatives a particular course of action that provides the optimal choice.  This model, however, may not be suitable for all types of decisions, especially those that require more innovative approaches and unique solutions.
The creative approach ventures into the unknown to produce bold and innovative solutions to problems. According to Gunn, when it comes to exploring the unknown, there is no substitute for the human mind’s creativity and inventiveness.
Today, we conclude our discussion by looking at other approaches to decision-making.

Group approach
Accountability WatchA very effective way of making decisions is the use of a group decision-making tool that dates back to the early inhabitants of America. Instead of a conference room with round tables, linen tablecloths and nametags, there is a ceremonial lodge where participants are involved in a tribal council ceremony. The medicine wheel council, which is the decision-making tool, replaces contentious debate with constructive conversation. Members of the circle would pass a talking stick to indicate who is on the floor, and no interruptions are allowed. Each speaker identifies himself/herself by name and ends his/her presentation with the words “I have spoken”.

Participants are seated around the eight points of a compass – the Four Shields of Power and the Four Attentions. Each participant brings one unique perspective to offer to the group, and out of these perspectives the collective wisdom of the group emerges. Organizational barriers are broken down and issues are dealt with in a non-confrontational way without anyone seeking to protect territory. In  this way, decisions are made with the broader interest at heart.

The council ceremony always begins with the east and proceeds clockwise around the circle of the medicine wheel. Participants are required to adopt perspectives and attitudes commensurate with their seating positions on the compass, usually talking for less than ten minutes. There are no debates, arguments or attempts to contradict each other because understanding does not come from conflict but rather it accumulates and then emerges. Decisions are made by consensus, and if there is no consensus, the group can suspend the ceremony to allow for another attempt. Alternatively, especially in the case of an emergency where a decision has to be reached, the council can give someone the authority to decide.
While not suggesting that today’s managers should replicate the entire decision-making process described above, there are important lessons that can be learnt. These include:
Good decisions begin with listening. Unfortunately, today’s boardrooms are characterized by an emphasis on presentations, and taking of positions and strongly defending them;
Important decisions are made to feel important. The council ceremony elevates the decision-making process rather than trivializing it through debates and arguments and seeking to defending them;
Emphasis is information, not advocacy. In this way, the broader interest is served and the collective wisdom of the group prevails;

Truth is allowed to prevail rather than protecting turf or promoting a particular viewpoint. The council ceremony gives members the opportunity to assume particular roles which may not coincide with the actual positions they hold. In this way, there is no interest in promoting a particular view; and
A slower process yields better decisions since there is more time to reflect on the issue at hand. There is exhaustive discussion and examination of the issue from all angles, corresponding to the cardinal and non-cardinal points of the compass.

Incremental approach
Today’s environment is characterized by a significant degree of risk and uncertainty, and therefore there may not be enough information to make decisions. Etzioni argues that “decision makers in the 1990s will continue to travel on unmarked, unlit roads in rain and fog rather than on the broad, familiar, sunlit streets of their own hometowns”. Given this situation, one approach to decision-making involves the use of partial information and making small moves aimed at improvement.
The advantage of this approach is that it eliminates the need for complete information and focuses on limited areas one at a time. It also avoids danger of grand decision-making by following roughly the same course, with small modifications as new information becomes available, rather than taking a completely new course. The obvious disadvantage is that this approach is very conservative and is unlikely to be suitable where new and innovative solutions have to be found.

Other approaches
Etzioni refers to an alternative approach to decision-making, which is in contrast to the incremental approach. It involves selecting a course of action based on experience, inner voice, intuition and whatever information is readily available. Once the selection is made, the necessary resources, dedication and ingenuity are brought to bear to make the decision work. This is a bold approach to decision-making that can produce new and innovative solutions. The danger, however, as the author puts it, is that “it is much more likely to end in shipwreck than in victory, especially in ever more treacherous seas”.

Etzioni describes another approach that he calls humble decision-making, adaptive decision-making or mixed scanning. It involves a “generalized consideration of a broad range of facts and choices followed by detailed examination of a focused subset of facts and choices”. Mixed scanning can be regarded as a partial or an incomplete form of the rational approach to decision-making but differs from the incremental approach in terms of the extent of the examination of the focus areas.

Decision-making from a complex and dynamic  perspective
The world is dynamic and human thinking and behavour are very complex. Decision-making should therefore take these factors into account. In recognition of this, Cooksey advocates the use of the Complex Dynamics Decision Perspective which he describes as providing “an appropriately complexified nonlinear dynamic perspective on managerial decision making”. Decision-making is considered at three levels – the macro, the medial and the micro levels. At the macro level, decision-making is viewed in terms of the individual context, the environmental context, the interpersonal context, and the organizational context as well as their inter-relationships. At the medial level, specific contextual factors are considered while at the micro level there is a further decomposition reflecting the rich array of influences.

To what extent this model can be used in practice for decision-making is debatable. Ultimately, good decisions are likely to come about through years of experience, foresight, vision and intuition as well as through a system of trial and error.

Effective decision-making
Some of the attributes in effective decision-making include:
* Confidence in one’s judgment and the courage to make decisions.  As a manager, you have to make decisions. Not all decisions may turn out to be right. However, you have to develop a process for identifying and changing those decisions quickly;
* The use of available evidence and pertinent facts as well as rational and systematic thinking rather than gut instinct. Effective decision-making also requires time, patience and a consideration of the long-term implications;
* Good listening first so as to obtain different perspectives of the problem and its proposed solutions;
* Creating enough alternatives in order to provide for the best possible solution;
* Deep knowledge of the subject matter as well as intense concentration. Ultimately, decision-making involves an appeal to one’s conscience, patience and a display of quiet competence;
* The use of scenario planning to make important decisions. Scenarios have to be matched with corresponding objectives or strategies. To the extent that a particular scenario unfolds, the decision-maker is in a better position to make informed decisions;
* Doing the right things rather than doing things right. Sometimes making the “wrong” decisions is the right thing to do; and
* Transforming the art of decision-making into a science since this can save time and money, and avoids frustration.

Conclusion
Several approaches to decision-making have been discussed of which the analytical and the creative approaches appear to be the dominant ones. The analytical approach is logical and rational and any decision derived can stand the test of an independent scrutiny. However, it ignores the human element and in particular emotional aspect of life, especially in an age where workforces have become more knowledge-based.

Creative thinking appears more relevant in today’s environment since it appeals to the inner wisdom and common sense of the decision-maker. According to W. Brian Arthur, Citibank Professor, for the big decisions in life, one needs to reach a deeper region of consciousness and letting an inner wisdom emerge. Such decision-making requires time, patience and courage. Creative thinking is divergent and is likely to produce better results.

The Group decision-making model has some merit, considering today’s environment where the discussions are dominated by those who are more articulate and where emphasis is placed on first impressions, presentations, and taking of positions and strongly defending them. As a result, the quiet and the less articulate, who may have good ideas, find it difficult to express their views. In the final analysis, good decisions are likely to come about through years of experience, foresight, vision and intuition as well as through a system of trial and error.
I leave with you the following:

In the final analysis there is no other solution to man’s progress but the day’s honest work, the day’s honest decision, the day’s generous utterances, and the day’s good deed.

Clare Booth Luce