Leadership Barometer 15 Quality of Decisions

Here is a good indicator of the quality of a leader.

Make Good Decisions

This measure sounds so trivial and axiomatic that you probably wonder why I list it at all. Unfortunately, many would-be great leaders make rather stupid decisions for one reason or another. I often puzzle at how it is possible for a leader to do something that takes him in exactly the opposite direction he is trying to go. That sounds illogical, I know, so let’s examine some of the forces that could allow this to happen.

1. Stupidity – This is a simple situation of making a bonehead decision. It is like the leader who intellectually knows it is better to admit a mistake than to hide it because that actually increases respect, but chooses to hide it anyway. Sad to say there are many stupid leaders out there who make wrong decisions rather consistently.

2. Time pressure – I had a teacher once tell me “You can write a term paper in 3 months or 3 hours, the only difference is the quality.” So it goes with decisions. Quality goes up with more thought, at least up to a point. After a while the old syndrome of analysis paralysis takes over, and the decision process becomes entirely too cumbersome.

3. Poor information – often decisions are based on input from others. If a leader blindly takes bad information and makes big decisions based on it, they will turn out bad. That was the problem when George Bush decided to invade Iraq to get rid of the weapons of mass destruction. After sifting the sand of that entire country for years, we never did find the problem we allegedly went in to eliminate.

4. Going along with bad advice from above – there are times when your boss will toss out a half-baked idea and say “Why don’t you try it.” Be careful to get good reasoned advice before taking the plunge. If you find yourself on a wild goose chase, don’t forget to ask who let the goose out of the cage to begin with.

5. Not accounting for risk – Every decision has an element of risk. If you make a decision based on optimism and faith but do not consider the potential downsides of it, you will eventually get caught in a nasty situation. Get the facts and consider what could go wrong as part of your planning process.

6. Sub-optimizing on only part of the story – it is really easy to please one constituency while alienating another one. You can please the shareholders by eliminating salary increases for a year, but the employees will suffer. There are numerous situations where there are tradeoffs. Go in with your eyes wide open on the holistic impact of your decisions on all stakeholders.

7. Not thinking of the customer – for every action or decision, there is a customer. Make sure you know who the customer is and that the customer is well served by your decision.

8. Repeat of something that did not work before –Making the same bonehead move you have made in the past hoping for a better result should qualify you for a white jacket with very long sleeves. It is the classic definition of insanity.

9. Distracted by a bigger issue – often there are numerous decision processes going on simultaneously. You need to consider each one carefully and not put so much energy into one decision that you starve another. There is no forgiveness if you make a bad decision on the cart because you were focused on the horse.

10. Hubris – Decisions made to feed the ego can often lead to disastrous consequences. Try to not get married to your ideas too early. Listen to all sides and think carefully about the full consequences before becoming an advocate of one approach.

11. Lack of communication – If you make a brilliant decision, but everyone else thinks it is stupid because you failed to explain your rationale, you are in trouble. You need to bring others into the process as early and completely as you can.

So, on first blush, the notion of making good decisions sounded trivial, but after considering some of the ways leaders get tripped up, the above checklist ought to be a good starter kit for a master list in your organization of how to make better decisions. I am sure there are several things I missed on my list that you can think of.

Bob Whipple is CEO of Leadergrow Inc., a company dedicated to growing leaders. He speaks and conducts seminars on building trust in organizations. He can be reached at bwhipple@leadergrow.com or 585-392-7763.

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