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McKinsey Article Decision making in the age of urgency - Coggle Diagram
McKinsey Article
Decision making in the age of urgency
Only 20% say their organisations excel at decision making and majority said time utilized in decision making is used inefficiently
Most organisations make trade-offs between the speed of making a decision and the quality of that decision
Faster decisions turned to be higher quality suggesting that speed does not affect decisions adversly
Decision-making winners tend to perform well on speed and quality of the decisions while achieving better financial performance
Different types pf decisions require different approaches
Types of decisions
Big-bet
Infrequent
High-stakes decisions
Shapes the organization's future
e.g. M&A's, resource allocation
Cross-cutting
More frequent
made by different groups
Interconnected, collaborative and end-to-end decision process
e.g. pricing
Delegated decisions
Frequent
handled by single individuals and require limited input from others
Only 30% of the survey respondents reported familiarity with the decisions types
more than 50% of respondents reported spending more than 30% of their working time in decision making, and more than 25% reported spending most of their time.
The report suggested that time spent on decision making is used inefficiently which could have a financial adverse effect.
What the winning organizations do
(the 20% of respondent in the survey)
Make decisions at the right level
Focus on corporate-level value and strategy
Commitment from relevant stakeholders once decisions are made
"Our research indicates that the quality and speed of decision making are both strongly associated with overall company performance"
High-quality big bets can deliver significant increase in future returns.
Faster decision-making processes and faster implementation link to higher returns
Big bets levers
the quality of discussions and debates
Explore assumptions and alternatives beyond given information
Actively seek information
Cross-cutting levers
Running decision meetings effectively as possible
Effective coordination between stakeholders
Delegated decisions levers
Empower employees to make decisions and provide high tolerance for failure