The Advisor’s Corner expands on the strategic planning and tactical business execution dialogue between StrategyDriven contributors and our websites visitors. Postings in this category reflect questions asked by StrategyDriven members and guests and the advice provided by one or more of our highly experienced business professionals. Additionally, StrategyDriven members are provided the opportunity to share their insights and experiences by way of comments and feedback to the individual postings.
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Organizational alignment to common goals suggests executive, manager, and employee motivation is largely driven by the company’s strategic plan. However, there are likely some additional, hidden performance drivers unintentionally created by the organization’s processes or embedded as an integral component of the organizations’ history and culture.
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Nathan Ives is a StrategyDriven Principal and Host of the StrategyDriven Podcast. For over twenty years, he has served as trusted advisor to executives and managers at dozens of Fortune 500 and smaller companies in the areas of management effectiveness, organizational development, and process improvement. To read Nathan’s complete biography, click here.
https://www.strategydriven.com/wp-content/uploads/iStock_000003820694XSmall.jpg327367StrategyDrivenhttps://www.strategydriven.com/wp-content/uploads/SDELogo5-300x70-300x70.pngStrategyDriven2007-09-11 18:54:492019-04-30 19:42:11Strategic Analysis Best Practice 3 – Identify the Hidden Drivers
For better or worse, our decisions and those of the other members of our organization define today’s realities and tomorrow’s outcomes. In a world that is becoming increasingly knowledge based, more and more members of an organization are making impactful decisions every day; thereby extending decision-making’s importance from the executive suites to the desks of the vast majority of professionals.
Decision-making can be categorized based on the time frame in which associated actions will yield observable results. Near-term decisions are often supported by predetermined guidelines to enable more rapid decision-making while long-term decisions, clouded by the ever increasing uncertainty of changing conditions, rely more heavily on broad philosophical principles and decision-maker experience. The four general decision-making categories are:
Near-Term Decisions: decisions supported by policies, procedures, schedules, and regulatory guidelines
Category One: immediate actions taken in response to emergent conditions as directed by procedure. These decisions seek to seize advantage of momentary opportunities or avoid adverse consequences associated with rapidly changing conditions. Decisions of this type should be supported by procedural guidance whenever possible to improve consistency and predictability of response; thereby minimizing the organization’s risk exposure. Examples include: buying or selling of commodities when a target price is reached and actions taken in response to changing operating system conditions.
Category Two: day-to-day choices regarding activities and resource allocations. These decisions have immediate impact on the organization and may have unrecognized or less predictable long-range impacts. Decisions in this category are frequently supported by pre-established performance standards, policies, and schedules. Examples include: daily work scheduling and task assignment and procurement choices between vendors for a one-time purchases.
Long-Term Decisions: decisions made in the absence of procedural guidance and shaped by market trends, regulatory policies, and societal norms
Category Three: intermediate range decisions made in response to more slowly evolving trends where it is believed a particular desired outcome may be achieved in the days, weeks, or months ahead if a particular course of action is pursued today. Decisions in this category may have both near- and long-term impacts on the organization. While not directly supported by policies, procedures, or regulatory guidelines, these decisions often leverage guiding principles or intent to establish a target end state. Examples include: decisions made in response to slowly degrading equipment where failure is likely, vendor selection where contracts will be entered into for annualized periods, equipment leases other than hourly or daily rentals, monthly scheduling, and hiring and termination decisions for first line management positions and below.
Category Four: long-range or strategic decisions define near- and long-term actions seeking to achieve results that will be years in the making. While influenced by the organization’s mission, vision, values and regulatory policies, these decisions are largely shaped by broader market trends. Subsequently, decisions in this category have the highest degree of uncertainty because of their long time horizon and the increasing uncertainty associated with market prediction over time. Examples include: construction of new facilities, major equipment replacements, expansion of product lines, mergers and acquisitions, and hiring and termination decisions for senior managers and executives.
Regardless of their impact time frame and the immediacy in which they are made, all decisions go through a similar process that begins with condition recognition and ends in action. Phases of decision-making include:
Scope and Significance Identification Phase: condition scoping, condition resolution cost-benefit and risk assessment, action need determination, action response prioritization
Action Plan Development Phase: alternative development (including cost-benefit and risk assessments for each alternative), alternative selection, and communication and action plan development (for the selected alternative)
Action Plan Implementation Phase: communication and action plan implementation, follow-up condition monitoring, decision evaluation, and action plan adjustment
Organizational Capabilities and Cultural Development Phase: decision-making process training, performance expectations established and reinforced, questioning attitude developed and reinforced, decision-making self-assessment and lessons learned communication
The final phase, Organizational Capabilities and Cultural Development, is an enabler of decision-making. This phase occurs on an ongoing basis; creating an organizational mindset that enables both the recognition of decision opportunities and helps the organization learn and grow from its decision-making successes and shortfalls. Strong execution of the Organizational Capabilities and Cultural Development Phase is a hallmark of organizational excellence.
Focus of the Decision-Making Forum
Decision-making is a complex process that when done well enhances both strategic planning and tactical business execution. Materials within this forum explore the four categories of decision-making, underlying concepts, and performance best practices and warning flags. The following articles, podcasts, documents, and resources cover those topics critical to effective decision-making.
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Organizational silos act as barriers; hindering the performance of business units, work groups, and individuals as they strive to achieve the organization’s shared goals. Nowhere in the organization are silos more destructive than if they exist within the executive team. Here, silos prevent the free flow of information and resources needed to successfully execute cross-functional initiatives with the barriers to collaboration cascading downward though the entire organization. To help prevent these silos from forming, all strategic plan goals must be shared equally by all executives.
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Nathan Ives is a StrategyDriven Principal and Host of the StrategyDriven Podcast. For over twenty years, he has served as trusted advisor to executives and managers at dozens of Fortune 500 and smaller companies in the areas of management effectiveness, organizational development, and process improvement. To read Nathan’s complete biography, click here.
https://www.strategydriven.com/wp-content/uploads/rawpixel-652547-unsplash.jpg20003000Nathan Iveshttps://www.strategydriven.com/wp-content/uploads/SDELogo5-300x70-300x70.pngNathan Ives2007-09-04 16:26:332018-09-16 13:56:47Strategic Planning Best Practice 7 – Shared Accountability
In today’s competitive environment, it is no longer good enough to offer employees a good place to work. Rather, it is imperative a company creates a work environment where the best want to work. Only when such an environment exists will a company attract and retain the most knowledgeable, skilled, and accomplished employees; who in-turn will effectively execute its activities and make it a viable competitor in an increasingly aggressive marketplace.
Hi there! Gain access to this article with a StrategyDriven Insights Library – Total Access subscription or buy access to the article itself.
Subscribe to the StrategyDriven Insights Library
Sign-up now for your StrategyDriven Insights Library – Total Access subscription for as low as $15 / month (paid annually).
Nathan Ives is a StrategyDriven Principal and Host of the StrategyDriven Podcast. For over twenty years, he has served as trusted advisor to executives and managers at dozens of Fortune 500 and smaller companies in the areas of management effectiveness, organizational development, and process improvement. To read Nathan’s complete biography, click here.
https://www.strategydriven.com/wp-content/uploads/alexandre-tsuchiya-333890-unsplash.jpg51843456Nathan Iveshttps://www.strategydriven.com/wp-content/uploads/SDELogo5-300x70-300x70.pngNathan Ives2007-08-21 17:23:462019-02-02 20:52:31Resource Management Best Practice 1 – Attract the Best with Accountability
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The Advisor’s Corner expands on the strategic planning and tactical business execution dialogue between StrategyDriven contributors and our websites visitors. Postings in this category reflect questions asked by StrategyDriven members and guests and the advice provided by one or more of our highly experienced business professionals. Additionally, StrategyDriven members are provided the opportunity to share their insights and experiences by way of comments and feedback to the individual postings.
Organizational alignment to common goals suggests executive, manager, and employee motivation is largely driven by the company’s strategic plan. However, there are likely some additional, hidden performance drivers unintentionally created by the organization’s processes or embedded as an integral component of the organizations’ history and culture.
For better or worse, our decisions and those of the other members of our organization define today’s realities and tomorrow’s outcomes. In a world that is becoming increasingly knowledge based, more and more members of an organization are making impactful decisions every day; thereby extending decision-making’s importance from the executive suites to the desks of the vast majority of professionals.
Organizational silos act as barriers; hindering the performance of business units, work groups, and individuals as they strive to achieve the organization’s shared goals. Nowhere in the organization are silos more destructive than if they exist within the executive team. Here, silos prevent the free flow of information and resources needed to successfully execute cross-functional initiatives with the barriers to collaboration cascading downward though the entire organization. To help prevent these silos from forming, all strategic plan goals must be shared equally by all executives.
In today’s competitive environment, it is no longer good enough to offer employees a good place to work. Rather, it is imperative a company creates a work environment where the best want to work. Only when such an environment exists will a company attract and retain the most knowledgeable, skilled, and accomplished employees; who in-turn will effectively execute its activities and make it a viable competitor in an increasingly aggressive marketplace.
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