Published:
February 13 2009, 08:47 AM
by
Steve Romero
Those of you who have attended one of my presentations or have read my blog know that I believe that decision-making is the heart-and-soul of IT Governance. What decisions are made, who makes them, and how, are the essence of Governance.
Decisions are especially critical during tough economic times. Our decisions better be good because our threshold for failure is greatly reduced. We can't afford to make mistakes. Now is a good time to put a spotlight on how we make decisions.
Decisions will be coming down the pipe fast and furious in response to this economic downturn. My hope is that these decisions are born of good governance. No matter how good you believe your governance to be, I recommend applying two very simple rules to these crucial decisions.
Steve Romero's Rules for Rational Decision-Making
1) Be crystal clear on the objective - What is the desired outcome of the decision?
Too often we make decisions because they "feel" right. Though it may seem obvious, state and communicate the precise reason you are making this decision at this time. Be just as specific in describing and communicating the desired result or expected outcome. If your decision is to have any chance of success, you better make sure everyone involved is on the same page.
2) Be sure you can measure the result of your decisions - What metrics will be used to determine if the decision is realized, and what metrics will be used to determine if the decision had the desired outcome?
Metrics and measures are too often overlooked when it comes to decision-making. If you don't measure it, you can't manage it. If you don't measure it, you can't improve it. If you don't measure it, you probably don't care.
Characteristics of a good decision metric include being:
- Important - Reflects the ultimate goals and purpose of the organization
- Controllable - Is something that employees can directly influence
- Accurate - Reliably expresses what is being measured
- Objective - Not subject to dispute
- Easy - Not burdensome or expensive to obtain
- Timely - Is available in time to make a difference
- Comprehensible - Easily communicated and readily understood
- Harmless - Does not induce dysfunctional behavior
Don't overlook the need to measure the effectiveness of the decision-making process itself. In addition to measuring the outcome of the decision, root cause analysis should be used to determine if the decision-making process is flawed.
Apply these two rules to all of your decisions and you will be assured that they are reasoned and rational--and stand a much better chance of being successful.
What far-reaching decisions have recently been made in your organizations? Do you know why the decision was made and what the expected outcome is? Is the decision being measured?