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The ABCDs of categorizing decisions
- Big-bet decisions: infrequent and high-risk - from major acquisitions to game-changing capital investments;
- Cross-cutting decisions: frequent and high-risk - think pricing, sales, and operations planning processes or new-product launches;
- Delegated decisions: frequent and low-risk - routine elements of day-to-day management, typically in areas such as hiring, marketing, and purchasing;
- Ad hoc decisions: infrequent, low-stakes.
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Approaching big bet decisions
- Appoint an executive sponsor to work with a project lead to frame important decisions for senior leaders to weigh in on;
- Break things down (with decision meetings at each stage), and connect them up.
- Focuses on debating the solution (instead of endlessly elaborating the problem) and gather the right people.
- Move faster without losing commitment: get comfortable living with imperfect data and being clear about what “good enough” looks like.
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Approaching cross-cutting decisions
- Identify decisions that involve a cross-cutting group of leaders, and work with the stakeholders of each to agree on what the main steps in the process entail.
- Work through a set of real-life scenarios to pressure-test the system in collaboration with the people who will be running the process.
- Limit the number of decision-making bodies, and clarify for each its mandate, standing membership, roles etc.
- Create shared objectives, metrics, and collaboration targets.
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Approaching delegated decisions
- Delegate more decision.
- Avoid overlap of decision rights.
- Establish a clear escalation path.
- Get people to take ownership of the decisions.
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CURATED BY
"I think the next best thing to solving a problem is finding some humor in it." -Frank Howard Clark
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