Decisions-making, amidst complexity

That life is complex and unpredictable is a truism. And, though the frequency and impact may vary, change is a constant, it seems. If one is to thrive (succeed, realise goals) in such an environment, adaption is critical having detected something has changed. To ignore or pay lip-service to change is folly, and to guess how to respond is about as reliable as gambling.

The same principle applies in organisational and boardroom settings. As in life, some of what is seen, heard or read is reliable, but much is not—to the extent that descriptors such as misinformation and  disinformation have become commonplace, even hackneyed. Consequently, those charged with providing effective steerage and guidance need to be alert, to ensure decisions about how to proceed are underpinned by accurate data from reliable sources, and insights from conversations and analysis.

Two techniques I have found useful when considering decisions with strategic implications:

• Take stock: Rarely does anyone have everything needed to make an informed decision off the bat. Acknowledge the existence of gaps. Ask probing questions to try to understand what is going on and bridge the gaps. Test everything (on the assumption that what seems at first to be the case may not be). Hold options lightly. Invoke an advocatus dialboli mindset, to explicitly draw out alternative perspectives. Listen carefully. Draw on prior experience too, for the likelihood of historical experiences being relevant is high.
• Take time: Rarely does a so-called strategic decision need to be made immediately, despite first appearances and temptations in modern society to be seen to be agility, and to embrace pace and an urgency mindset. Clarify and agree when the decision needs to be made. Agree the pathway to the decision, and what intermediate decisions can be made to de-risk the strategic decision.

If boards are to make sound decisions, directors need to breathe—to create space and time to consider options well. Boards should also agree on the decision criteria, process and timing at the outset; guard against being drawn into irrelevancies along the way; and, employ a strategic mindset throughout. How does your board measure up in this regard?