Plus 3 bonus questions
As you progress in your career, decision making becomes increasingly complex and the implications more serious. This article will describe the process and what questions to ask to ensure that you make the best possible decision.
Firstly, you need to understand that you can only make the best decision at the time, based on imperfect and incomplete data, in an imperfect world, given limited time and resources. To make the best possible decision follow this best practise 5-step decision making process illustrated below and answer the questions in the first four steps.
Step 1: Identify the decision
This is the most important step and generally one that most organisations do not spend enough time on. As this is so important, there are more questions in this section than in any other, starting with:
- What is the problem you are facing?
Framing matters – how you frame the problem will directly influence all the next steps and thus the final decision. Framing the problem clearly is important for two reasons: firstly it must be kept front and centre during the entire process and secondly, it will ensure the process is not diverted by other requirements and biases.
2. Why are you facing this problem (how did you get here)?
Answering this question will show how this problem came about. It is important to identify the root cause so that it could be avoided in future, as well as take any historic factors into account. An illustrative example would be, in the case of a building flaw, that the building was designed in a certain way due to servitudes.
3. What is this problem costing you?
This question aims to clarify not only the financial implications to yourself, department, organisation and customers and consumers, but also reputational, efficiency, time and other resource costs. It can also address all types of waste.
4. What would the future look like if you did nothing about this problem?
The purpose of this question is to determine what would happen if you or the organisation fail to act. In other words what further costs and/or lost opportunity and damages you might incur.
5. Why do you need to solve this problem now?
This question will assist in determining why resources need to be urgently allocated to this problem and what your timeline will look like. In some cases, the problem has to be solved within a specified time limit, such as when a new law affecting you is promulgated, but in other cases it may be used as motivation.
Bonus Question: Are there any opportunities you could unlock by solving this problem?
Although answering this question is not required, it may help to state what opportunities can be realised if the problem is solved or savings that could be realised. But be careful that you do not pick a solution that just realises opportunities, but does not solve the problem.
Step 2: Gather information
This next step seems counter intuitive, as you most probably want to seek out alternatives first, then see what information is available. Beware though, looking at solutions first will allow solution bias to creep in and severely limit the range of solutions. To prevent this start by asking:
6. Who are the stakeholders?
You need to understand who all the stakeholders are in solving the problem, both internally and externally. Look to experts, departments whose help you would need to solve the problem or to implement the solution and those who are affected by either the problem or will be affected by the solution. Finally, it is very important to consider the people who will be dealing with the solution frequently.
7. How will you measure success?
The function of this question is ensuring that you can measure whether the problem has been solved. This is best illustrated by an example: when looking at a new HR software solution, perhaps a good indicator would be how easily can managers review and approve leave applications or how easy is it to do payroll. A poor measure would be how easy reporting is on absenteeism.
8. What is relevant and important to the decision?
As with the example above a new solution should make the lives of the users easier, in this case employees who want to check their leave balances and apply for leave, and, on the other side, managers to approve or decline leave application. Easily reporting on absenteeism does not solve any problem.
9. What is the available budget?
You need to understand what the available budget is, or put another way, what is the value attached to solving the problem and what value is realised by any potential opportunities. The budget should also include resources other than money, such as people and time.
Step 3: Identify alternatives
You may be tempted to jump in by getting quotes from well-known service providers, but this would be a bit like getting quotes for a variety of sports cars and luxury sedans, when what you actually require is bus. It is important to ask:
10. What are the different ways this problem can be solved?
Every problem will have multiple solutions or courses of action, where the base option should always be “Do Nothing”. Finding the solutions should be a combination of keyboard research and using group workshops (of the stakeholders identified above) to brainstorm solutions. During all this it is important to keep the original problem statement front and center.
Bonus Question: What different interpretations of the data may be possible?
It may help to look at all the available information in different ways. Having various stakeholders present, with their different points of view can also help interpreting the data differently, thus highlighting more potential solutions.
11. What would you like the solution to look like?
Once you have multiple creative options to consider, it is time to define what the ideal solution would look like. This solution should be realistic, feasible and accessible. You may want the latest and greatest HR management system, to move away from tracking leave on Excel spreadsheets, but is this realistic and feasible?
12. How would these various solutions solve the problem?
This question requires clarifying what is required for each solution. For instance, for the HR solution mentioned above you would have to determine what hardware as well as training is required. Finally, also what would be required for implementing the various solutions.
13. What risks is your organisation going to face with each solution?
Each of the potential solutions comes with inherent risks. Identify as many of these risks as possible, and determine their likelihood and severity. This will influence the final decision.
Step 4: Weigh the evidence
This is where the accountants come in and do a Cost/Benefit Analysis. This is a great tool, along with pros and cons lists and decision trees, but should not be the only way of assessing the solutions. To get buy-in from all stakeholders to the chosen solution, it is important that the process of choosing is open and easily replicable. To do this, start with:
14. What criteria should be used?
Costs and benefits are definitely two criteria that should be there, but also consider feasibility, usability and risks. Other criteria such as social or environmental impact may also need to be taken into account.
15. Which criteria are the most important?
Each department and person will weigh the criteria differently, this is why it is important that all stakeholders need to have their input regarding the relative importance of the criteria. Involving all the stakeholders will also assist with buy-in.
Bonus Question: Is the solution acceptable and desirable in the long term?
You may want to take into account the long-term repercussions of the various possible solutions. We often discount the future, putting greater importance on short to mid-term opportunities and risks.
Step 5: Choose
If you have followed the process outlined above and answered the questions, you will have multiple solutions. Each solution should be measured against the criteria and weighed, which will leave you with 2 or 3 clear front runners, if not an outright leader. Further weighing may need to occur, but at this stage it is important to manage any conflict that arises, while ensuring that whatever solution is chosen it solves the original problem. Although, if you have followed the process, conflict should be minimal, as the stakeholders were consulted from the beginning of, and throughout the decision process.
Once the decision has been made, the solution can be implemented. This generally means taking a project approach with all the associated project governance and project management requirements. If you have followed the process above as well as good governance practices, this project will have buy-in from stakeholders, and be supported by decision makers and project resources. These are integral to a successful implementation.