This article first appeared in the March, 2003 edition of the Jacksonville Business Journal
We are living in the midst of uncertain times. The economy, the international environment, terrorism, the integrity of some of our business leaders, and leaving a better world for the next generation all press on our minds.
These uncertainties can make the present seem overwhelming, and cause some leaders to respond with indecision and lack of action. Inaction takes many forms. For some it manifests as anxiety or low morale. For others it is procrastination - let's hold off for another quarter. Still others avoid decisions through committees, studies, reviews, and more analysis. Some leaders focus on who to blame rather than how to solve the problem.
Inaction based on economic uncertainty is one of the reasons why many companies are not making major capital investments. This same uncertainty is causing individuals to withhold personal investments, thus keeping the stock market depressed. Unintentionally, this action creates compounding conditions that actually make the situation worse by deepening the downward spiral.
Regardless of the form of inaction, the results are predictable. When leaders do not take decisions and act to implement solutions, their companies must endure the future that befalls them. It is during times such as these that we need our leaders to help guide us forward through the clarity of their vision, the strength of their character, and the steadfastness with which they make decisions and initiate forward action.
Some leaders are more inclined to avoid making decisions during uncertain or difficult times. They argue that the situation is not sufficiently clear and the information not yet compelling. They also believe that the course of events will provide more information and then their decisions can be made based on a more complete understanding of the total picture. Their case can be comforting. After all, we certainly do not want to make bad decisions based on inadequate information or faulty assumptions. Unfortunately, they are usually wrong.
The failure to make a decision leads to abdication. Abdication gives others the time or circumstances to take control. It puts the leader in the role of reacting to others, usually from a weaker position and at a disadvantage. Leaders do not shirk difficult decisions. They accept the mantle of responsibility that is thrust upon them. They decide and act.
This is not to suggest that just because a leader makes a decision it is the right decision. It does suggest that most decisions are better than no decision. Few problems solve themselves. Few situations improve solely with the passage of time. Most unresolved problems get worse rather than better.
Before leaders make a decision they examine the situation around them to learn as much as they can. They take counsel from others. They keep their minds open throughout the analysis. Then they make a decision and act on it.
Great leaders continue to review their decisions after they have been made. If they discover that their decisions were in error, they adjust them. Sometimes the change is a modification; sometimes it is a full reversal. Poor leaders find it very difficult to change or reverse their decisions. Their egos often get in the way. Great leaders understand that the hallmark of outstanding leadership is that the right decision needs to be made - regardless of who makes it.
There are two frequently used corporate phrases that reinforce the fundamentals for making decisions. The first is: "Decisions must be made based on what's right - not who's right." The second is: "The fundamental ground rule for the decisions we make is: Best idea wins."
Leaders ought not make all decisions unilaterally. There are times when the leader should personally assess a situation, make a decision, and expect others to follow it. This is most appropriate in crisis situations. But there are other times when alternative paths need to be taken into consideration for the decision-making process.
When the situation is not urgent and there are a number of experienced, competent individuals involved a democratic or team decision-making process may yield a superior result. When deep commitment to a situation is required it is critical to provide people with the opportunity to express their opinion. When there are too many people for true discussion yet everyone has the right to influence the final say, voting is the best alternative. When two individuals are in significant conflict and the support of both is needed negotiations may be the right path.
The methods for making a decision vary based on the criticality and urgency of the situation, the experience and competence of those involved, and the commitment required by others to accept the decision.
Leaders know that they must select the decision-making method that is most appropriate for each situation. They also understand that the act of making decisions is their responsibility. Great leaders combine good intention, high integrity, and genuine effort to bring the best information and greatest minds to the process. After the decision is made they retain the openness and flexibility to be influenced by new information, the opinions of others and the course of events.
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