Showing posts with label decision making. Show all posts
Showing posts with label decision making. Show all posts

Wednesday, March 26, 2008

Democracy

The origin of the word democracy comes from Greek (Δημοκρατία) and its literal translation to English is "rule of the people". Indeed, this translation guides us on what democracy really means.
A business organization is no democracy. It is ruled by the shareholders and their representatives, and is managed by a small group elected for that purpose. The managers are those to make decisions and not "the people".
Winston Churchill said once that "democracy is the worst way for ruling, expect for all other ways that were already experienced". As other things said by him, this is a wise sentence. Even though democracy is not a good way to rule (a country), other ways are worse.
Usage of the term democracy has expanded and does not serve us only in the political region. We use it in many other cases as a way to speak of taking decisions based on the majority.
Many times we ask ourselves why don't we succeed in building the same atmosphere of will and passion in the organization as people have for home, friends, sports and other topic outside the office. The issue has many perspectives. Let us look, for example, on Blogging. We see people Blogging and collaborating outside work, much more than in. I am cautious. This is not an issue of white and black. People do not suffer in work. It is not a situation, I hope, in most organizations that people do not like the place in which they work. Yet, there are differences between the office and outside it, and there place for improvement. The more we are a place that our employees want to come to every morning, the more they stay (and that for itself is worth a lot). But more important than that, if people like the place they work in- they perform better.
Enabling people to take decisions indeed helps. We like to be involved; we like to have influence on others. This is reciprocal: the more the organization enables employees to be involved and to influence, the more they give back from themselves.
Yet, let us remember that we are a business; a place with defined business goals. Making decisions based on majority can contradict with shareholders favor. The process of taking decisions, involving many people, takes much more time, than if a small group only is involved.
Many organizations, find therefore, other ways for satisfying their employees, and leave democracy out of the organizations door.
However, it is important to understand, that the benefits of sharing in the process of decision-making, go far beyond involvement and good feelings of employees.
Professionally, it is better to take decisions asking many people. This is the wisdom of the crowds. This term, was coined by James Surowiecki
back at 2004. He wrote a book by this name. From the full name of the book "The Wisdom of Crowds: Why the Many Are Smarter Than the Few and How Collective Wisdom Shapes Business, Economies, Societies and Nations" we can understand the relevance to our topic- democracy of decision-making. Consulting more people- brings better results. We have learned this from Wikipedia, that turned to be the leading Encyclopedia wide world and we can learn this from many experiments that people and organizations have performed comparing the wisdom of experts and the wisdom of crowds. Every time we are surprised again to see that in most cases crowd beets experts.
The bottom line: It is beneficial for organizations to involve employees when taking decisions.

When and how?
In decisions that are related to new ideas for strategic moves;
In decisions related to forecasting market trends and wills;
In organizational decisions related to the people as a group (where there is no conflict in interest between the people, or between them and the organization);
When designing user interfaces of products;
Were brainstorming is needed in order to understand a problem or suggest solutions.

The criteria: Where information is not classified; where quality is essential; where it is worthwhile comparing to resources (time, cost); where our future lies.

I, as the owner and manager of a company, got use to, in the first years of the company, to decide on my own. As time passed, I learned to involve larger groups of people. The sharing may take many formats: sometimes as the first stage, sometimes in consulting on the way, sometimes in openness to changes- after. In some cases, the group is larger, in others, two or three people take part, No one recipe.
The name of the game, as in many other issues is working gradually; of course if wanting to change an existing organization.

The personal indecision is always there: fast versus comprehensive; wisdom of experts versus wisdom of the crowds. We, as managers have to decide- when alone, when with small group, when as democracy.
On the end of the day, we will be those to pay or profit. We will have to be responsible. Responsibility is no democracy. It remains ours.

Yours,
Moria

Sunday, January 13, 2008

Decision Making

In the bible, there is a known story, about how the Jewish people leave Egypt. Time after time, they ask Pharaoh, the king of Egypt, to set them free, and he insists on holding them on as slaves. The lord, sends his hand, and punishes Pharaoh and Egypt. Ten times, we see this cycle, of requesting to leave, Pharaoh remaining stubborn and God punishing. After eight times, Pharaoh's servants understand the theme and recommend Pharaoh to change his mind, based on the information they have. Pharaoh insists on taking the incorrect decision: "And Pharaoh's servants said unto him: For how long shall this man (Moses) be a snare unto us? Let the men go and serve God their God! Knowest thou not yet that Egypt is lost?" (Exodus, 10, 7). The servants already know. Pharaoh does not.

Decisions were always taken. We made decisions in the past and we make decisions today. However, within the years, and our employees becoming Knowledge Workers, decision-making gets complicated: More decisions cannot be taken without relying on the information and knowledge of our employees; some decision-making we distribute to our workers. It is much more difficult to manage and control decisions made by our employees.
These are the issues I wish to share within my post.

Three main points, independent, but interconnected, characterize decision-making, whether taken by me or by my employees:
First, people take many decisions. Job descriptions are widely defined, and employees are expected to decide for themselves on many daily issues.
The second point has to deal with the information and knowledge assisting the decision making process. We are over-flowed with data, information and knowledge. The worker, while taking a decision, or even when bringing us the information, for our decision, filters the proposed information focusing only on the most relevant parts, as he or she understands.
Last, but not least, in most cases there are no right or wrong answers. The world is complicated and answers are not black white colored. Most alternatives include pros, cons, and many gray variants in between, all influencing the right decision.
In result, we the managers, have a difficult time trying to control quality of decisions taken by our employees. This stands true, before the decision is made, as in most cases, we have less information and knowledge than our employees have (and what we have is subjective, as they, when handed to us, filtered it). It stands true, also after the decision is made, as in many cases, we do not have the tools to examine how good was the chosen alternative as compared to other alternatives. To make a long story short, our life as managers trying to manage decision making of our employees is not that simple.

Several tips I can share from my experience:
Do not try to control each decision made. Let the employees act independently and let us focus on controlling only main decisions.
When trying to control and taking part in a decision made, ask not only about the decisions recommended, but also about the rational that caused this recommendation. A technique, for complicated decisions, may be, requesting the employee to describe others alternatives, their pros and why after all they were not recommended.
High level observe, along time, the mechanisms of decision making of the employees, to be sure our employees know how to make decisions. Maybe even bring someone in and tutor them. We should remember that decision-making is a central part of our employees' job.

Easy? Not at all. Possible? Of course. However, I can say for sure that we are not permitted to try taking the decisions instead of our employees. It is tempting, but forbidden. Making decisions by our employees is right professionally, and is part of their personal development. Sometimes, our employees will take decisions other than what we think is correct. In most cases, however, this is not an excuse for changing the decision and overriding them. This is not an easy process (I can speak for myself- not easy at all to stop myself from telling them what to do!) but it is part of being a manager of a Knowledge Worker.

Who said life is boring?

Yours,
Moria