'The Pulse' of Benthurst - Team Perspectives
When process and organization structures change the decision roles become less clear, creating noise in organizations. Noise can hamper decision speed, lead to poor decisions. There is a need to crystallize the decision making process and the rules of the decision game, send clear messages about change and remove barriers to those decisions.
Although classic decision methods like RACI are a useful tool for clarifying decision roles, it falls short in practice, particularly in addressing the critical aspect of execution. The subtle distinction between responsibility and accountability often leads to noise in the decision-making process and the roles people play. Additionally, many organizations lack a formal, corporate-wide approach to handling major, complex decisions.
Why take this approach?
In the absence of a proven organization-wide approach, the best-case scenario may involve isolated pockets of high-quality decisions or instances of deep democracy decisions where leaders demonstrate inclusivity and rigor. Despite such sporadic successes, organizations often harbor the perception that they excel at decision-making.
A clarifying approach becomes crucial in mitigating unclarity, noise in roles and information, and biases. Transparency in decision-making processes is preferable to relying on individuals feeling confident in their judgment. In situations involving change, decision governance plays a pivotal role in ensuring a successful approach by contributing to clarity, meaning, and commitment. Importantly, prioritizing more high-quality decisions, as opposed to settling for merely "good enough" decisions.
The first step revolves around the process of effective decision-making, combining elements of quality, speed, consistency, and effort. These four (4) designs principles are pivotal for enhancing decision effectiveness in any organization.
Quality: How consistently does the organization make the right decisions at the right time?
Speed: How rapidly does the organization make decisions regarding energy market conditions, contracts, obligations, etc.?
Consistency: How frequently are decisions executed as intended?
Effort: How much management time and other resources are invested in decision-making and preparation?
The D.R.I.V.E.® Framework
The DRIVE® framework meticulously outlines the right people doing the right things. Dedicated individuals are assigned to each decision line item, ensuring accountability for navigating on the key decisions instilling ownership and responsibility. These 5 decision roles play a crucial role in facilitating decision-making by evaluating alternatives in terms of potential benefits and risks while considering the organization's risk appetite and tolerance for uncertainty.
The DRIVE framework helps in designing decision-making governance and involves five key roles (DRIVE). We How many follow detailed procedures to the letter. In many transformations new collaborations are required both on the level of decisions as on the level of execution. However, change can lead to a growing multidisciplinary way of working. That entails feeling the limits of the existing organization. Hence more debates, slow down, hence lower ownership, more concertation, and hence more meetings. The ‘chain of command’ is no longer sufficient
- Decision (D) The decision-maker, a crucial role in effective governance. Each decision has only one owner, either an individual or an administrative body.
- Recommendation (R) Actively collects and summarizes input for informed decision-making. In cases of differing opinions, distinguishes between personal positions and those of others. This role is assigned to one person or governing body.
- Inform (I) Provides data, informed opinions, and expert advice before the decision-making process.
- Veto (V) Holds the right to block the decision. Veto roles are limited but clearly defined in advance for the organization.
- Execution (E) The individual or body entrusted with executing the decision, reporting back to the Decision Maker.
The implementation of these 5 roles, along with governance principles, can expedite decision-making processes, providing support to the organization and its members in various aspects. Establishing an appropriate decision-making governance framework, ensuring a clear understanding of the process and desired outcomes.
This DRIVE framework ensures that everyone comprehends their responsibilities, associated decisions, and subsequent actions with a clear focus on the organization's purpose. Once decisions are made, the ingrained purpose minimizes second-guessing, fostering a culture of trust and accountability throughout the organization. The delineation of a clear escalation path to higher-level management ensures that challenges are swiftly addressed, aligning with the organization's purpose.
Ready to boost decisional effectiveness?
Let us help you eliminate noise, streamline your decision-making process, and empower your team to make high-quality, timely decisions. With a clear governance structure and defined roles, you’ll experience enhanced clarity, accountability, and execution across your business.
Contact us today to ensure your decisions are no longer "good enough" but consistently excellent.