Leadership and Organizational Agility

Random thoughts on decision making

The decision making process of complex organizations is an interesting process to consider and observe.

From Drop Box

Numerous factors figure into the equation of making an organizational decision.   I used to believe that complex organizations made decisions based on careful planning, thoughtful analysis, and visionary long-term thinking.

I now realize that I was both incredibly naive and believed what amounts to  bullshit corporate propaganda  about leadership in many cases.

From what I have observed over the years, most decisions made within complex organizations are not made in a very planful manner.  Rather they are made through an odd formula that looks something like this:

(SIDM + PD + PI + PP)/Impact to Image + FL$ = Decision X

Putting this enormous mess of colliding factors formula into understandable English would result in a translation that looks something like this:

Strength of individual decision makers + Previous Decisions + Perceived Impact + Potential Problems/Impact to Image + Fear of Legal Fees = Decision X

Let me break that process down for you a little more.

1. An organization realizes that they are facing  a developing external problem.
2. A bunch of people who are somewhat empowered to deal with such problems within the complex organization get together and discuss possible solutions.
3. They each bring their own biases and departmental agendas to the process.
4. Collectively, this group analyzes the issues, proposes, considers, and implements or rejects possible solutions.  All of this being done while filtered through the lens of how they will be personally impacted, what their superiors will think, and fears about reaching a potentially “Wrong” decision.
5. This is then run through the additional filter of organizational history. This eliminates many options
6. Then the filter of “This could make us look bad inside the company” is applied.  More options disappear.
7. Then everything that is left over so far from the process is run through the filter of “What if” .  More options are eliminated.
8. After assessing the few ideas that are remaining, two critical sniff tests are applied.  “How will this make us look in public?” and “Will we have to hire outside counsel/get sued for this?”
9. A few possible decisions emerge. Most are conservative or paralytic in nature, and probably are not viable long term solutions, but they are safe moves.

This is not the optimal process for complex decision making.

Most organizations are not agile

• The agility of an organization is in direct proportion to its size.   Small businesses have a major advantage over larger organizations based solely on the length and complexity of their decision making process.
• Organizational agility is hampered by the consideration of branding as part of the decision making process.
• Most organizational decisions involving conflict are decided by concerns such as precedent or short term conditions, rather than by taking a long term view.
• The organizational cost of conflict is not something that really enters into the decision making process.  This is surprising given that most businesses are driven by bottom line numbers more than anything else.

The challenge is in remaining agile and making viable long term strategic decisions while growing.

Do you work for an agile organization?     How do they accomplish that?   I would really like to know!

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Tagged as: agility, complex organizations, decsion making, leadership