First test post

First test post

Heading 1 test

Decision making is a strategic capability. It’s also a good indicator for organizational health and predictor for success. It directly influences the ability to navigate complexity, drive innovation, and align actions with goals. Identifying the decisions that need to be made and how you go about making decisions are critical determinants of success. Here are a few reason why it’s so critical.

1. Navigate ambiguity and complexity

The one certainty we can rely on is change. From shifting customer needs to evolving regulations and emerging technologies to complex internal dynamics, strategic design and innovation always involve unknowns. Considered decision making helps leaders and teams make sense of incomplete information, connect dots, take calculated risks, and keep momentum going in complex environment.

2. Drive Focus and Prioritization

With change comes options, and sometimes there will be multiple paths or ideas that need to be prioritized. Using the right decision making approach for the context helps determine signal from noise, evaluate trade-offs between competing priorities, and align initiatives with strategic goals.

3. Accelerate Learning and Innovation

Modern strategic design and innovation processes require constant decisions (and feedback loops) about which ideas to develop, translating insights into next steps, and maintain momentum by knowing when to pivot or persevere. to provide some structured considerations and examples of frameworks that can guide the next decision you need to make.

Key Considerations

At a high level, the framework the authors of Crucial Conversations use to identify four common ways of making decisions is helpful:

  • [ ] Consult – invite input from others.

  • [ ] Vote – discuss options and then call for a vote.

  • [ ] Consensus – talk until everyone agrees to one decision.

    • Command – decisions are made with no involvement.

Over the years of experience in innovation and strategy, a number of key considerations have become apparent when choosing an appropriate approach that is more likely to set you up for success:

    • Who should be involved? The “who” is perhaps the most critical factor, as it dictates the perspectives, expertise, and buy-in needed for a successful decision.

    • How do identified stakeholders best collaborate and contribute? To get the maximum outcome of participation, it helps to do things in way that everyone can participate and be at their best.

    • What are the scale(s) at which you need to be making decisions? Consider timelines, size / scope, and impact or risk levels.

    • What’s the nature of the problem? Is it well defined? If so it lends itself to more concrete processes. If it’s a wicked problem, then ongoing

    • What are the resources needed to lead to informed buyin and agreement? And are they available? Do you have the time, budget, expertise and knowledge/data needed? Or does this process provide you with any of those?

Frameworks

There are a number of frameworks to consider. Here I cover (*with inputs from AI):

    • Design Thinking

    • Decision Making Under Deep Uncertainty

    • OODA Loops (Observe, Orient, Decide, Act)

    • Real Options Analysis (ROA)

    • Multi-Criteria Decision Analysis (MCDA)

    • Cost-Benefit Analysis (CBA) and Cost-Effectiveness Analysis (CEA)

    • Adaptive Management (and Adaptive Governance)

    • Participatory Approaches & Deliberative Processes

You’ll see that some methods below naturally accommodate some considerations more than others. And some have overlap. More importantly, most can be borrowed from and adapted to bring in strengths and minimize weaknesses needed in context if done thoughtfully.

Design Thinking

Design Thinking is a human-centered, iterative process for creative problem-solving. It typically involves five (or more) stages: Empathize, Define, Ideate, Prototype, and Test. It focuses on understanding user needs, challenging assumptions, generating diverse solutions, and testing them rapidly.

Strengths:

  • Human-Centered: Ensures solutions are desirable and truly meet the needs of users.

  • Iterative & Experimental: Embraces learning through doing and allows for refinement of ideas.

  • Generates Novel Solutions: Encourages divergent thinking and challenging the status quo.

  • Reduces Risk: By prototyping and testing early, it helps avoid costly failures.

  • Collaborative: Fosters cross-functional teamwork and diverse perspectives.