WELCOME Decision Making and the Leader’s Ethical Compass

GET SET!  Was it personal or professional?  Personal  Professional  Tally the results at your table  How hard was it to make on scale of 1-10?  1 = easy, 10 = REALLY hard  Tally the results at your table  Were you happy with the outcome?  1 = No, 10 = Absolutely  Tally the results at your table

SESSION OVERVIEW Get Set! Defining Decision Making Overview of the Process Stress and Decision Making Tips and Tricks Exploring Your Style Ethical Considerations Building Alignment Decision Traps Timing and Consensus Case Situations Summary and Reflection

DECISION MAKING The thought process of selecting a logical choice from the available options.process logicalchoice options When trying to make a good decision, a person must weigh the positives and negatives of each option and consider all the alternatives. For effective decision making, a person must be able to forecast the outcome of each option as well, and based on all these items, determine which option is the best for that particular situation.decisionpersoneffectiveableforecastitems Business Dictionary

DECISION MECHANICS

DECISION STEPS 1. Define the problem or issue. 2. Gather information and analyze the problem or issue. 3. Develop alternative solutions. 4. Identify the “best” solution. 5. Make the decision effective. Peter Drucker The Practice of Management (1954)

WHY DECISIONS ARE HARD! When you have to make a hard decision, flip a coin. Why? Because when that coin is in the air you will suddenly know what you are hoping for.

STRESS AND DECISION MAKING  Preoccupation with an idea or preconceived notion may color our judgment.  Our concentration is impaired. Too much internal "noise" and distraction from our fear/stress. There is a deterioration in judgment and logical thinking. Neo-cortex shuts down and we become more reactive.  We can fall more easily into negative self-evaluations as stress affects our self-esteem and self-confidence. Negative thinking and self-criticism are not useful to move forward in a positive direction.  We have less objectivity for a reality-check that can show the overall position in the "bigger" picture.  Creativity is reduced. We see fewer alternatives and this reduces the brainstorming necessary for appropriate problem solving.  Our search for input of useful information is impaired.  We fail to see and understand the long-term consequences of decisions. This can lead to serious mistakes.  We do not communicate as effectively to get input, to make good decisions, and then to communicate and motivate people to get the required actions to successfully carry out a decision. Christopher Strange, Brain in Your Pocket, 2008

TRICKS TO PONDER  Pretend like you are advising a friend  Limit the amount of information you consider  Empower your inner contrarian and reverse your assumptions  Spreadsheet it out

LEVERAGE YOUR STRENGTHS  How do your strengths facilitate the receipt and processing of information?  What strengths enhance your power of inquiry and insight?  How might your strengths extend your reach and the ability to discover resources to enlighten your way forward?

WHAT KIND OF DECISION MAKER ARE YOU?  Impulsive  Fatalistic  Compliant  Delaying  Agonizing  Intuitive  Paralytic  Escapist  Play-it-safe  Planner Adapted from Rutgers University

DECISION STYLES Each style is a combination of preferences from a set of six pairs of opposing characteristics: prefers ad hoc or process prefers action or caution gathers information narrowly or widely believes corporate interests or personal interests prevail likes continuity or change prefers storytelling or facts Decision Styles*  Visionary  Guardian  Motivator  Flexible  Catalyst *2013 survey of 5,000 readers of the Harvard Business Review and McKinsey Quarterly

STYLES MAY LINK TO THE SITUATION  Directive  Analytical  Conceptual  Behavioral While decision-making styles can depend on the situation, according to behaviorist Isabel Briggs Myers, a person's decision-making process depends to a significant degree on their cognitive style. For example, a manager who scored near the thinking, extroversion, sensing, and judgment ends of the dimensions would tend to have a logical, analytical, objective, critical, and empirical decision-making style. Situation requires you to engage in:Your style might be - when...

ETHICS AND DECISION MAKING Things that tarnish the Golden Rule  Pressure  Pleasure  Power  Pride  Priorities John Maxwell, Ethics 101 Follow the Golden Rule: Do what feels right, decide as you would have others decide for you.

BUILDING ALIGNMENT  Clarity — involves truth telling, clarification, and amplification.  Dialogue — sending and receiving (listening), repeating, relaying, affirming.  Inspiration — motivating, modeling the way, acknowledging acceptance and progress.

DECISION AND DECEIT

HIDDEN TRAPS  Anchoring Trap — preconceived notions or judgment colored by superficial data/stimuli.  Status Quo Trap — everybody else does it this way!  Sunk–Cost trap — we have already put too much into making this happen.  Confirming Evidence Trap — seeking information that confirms our instincts without adequate vetting.  Framing Trap — shape the question (problem/issue) in a way that shades the response.  Estimating/Forecasting Trap — limiting the sample size to a superficial set.  Overconfidence Trap — avoiding the implications of being wrong. Hammond, Keeney and Raiffa, The Hidden Traps in Decision Making, 2006

TIMING Timing Variables  Internal o Knowledge o Experience o Skill o Gut feeling o Confidence  External o Stakeholder’s o Consequence o Risk/Reward o Other demands o Decision Climate o Market Influence

CASE SITUATIONS  Review background information  Address case situations as presented  Capture your findings in each instance  Document Results  Report Findings  Manage time wisely

BUILDING CONSENSUS

CHAMPION EXECUTION Execution  Momentum o Commitment o Initiate Action o Model the Way  Structure o Provide a plan o Monitor Progress  Feedback o Address Problems o Offer Praise AVOID DECISION FATIGUE.

WHAT ABOUT BAD DECISIONS?  Do not beat yourself up but do not brush it off, either. There is no sense in punishing yourself harshly for making a bad decision - but make sure not to simply brush it off, either. Be solutions focused.  Plan for next time. How can you be ready if this situation pops its head up again or a similar situation presents itself? What steps can you take to be ready? Plan and prepare. Remember that developing coping strategies is one of the traits associated with happiness.  The best version of you. Picture the best version of yourself. The healthiest, happiest, wealthiest, and smartest version of you. What would that person do or have done? What decision would he/she have made?  Pay attention to the warning signs. When your heart rate goes up, tightness in your jaw occurs, rapid breathing or a slight pain in your forehead occurs, you can be sure you might be prone to making a bad decision. Become aware of these warning signs and learn to step back to breathe.  Forgive yourself and move on. You cannot redo yesterday. The best you can do is learn from the past and apply the lessons learned to tomorrow. Owning your mistakes is one thing — letting emotions and feelings of anger, disappointment, and frustration fester will not make life any better.

BE MINDFUL OF CULTURE

DON’T MAKE THIS TOO HARD! STEPSVILLAINS You encounter a choice.You are not paying attention, you miss key clues. You analyze your options.  Narrow-minded framing makes you miss options.  Confirmation bias leads to gathering self-serving information. You make an informed choice. Short-term emotions tempt you to make the wrong choice. You live with it!You are overconfident about how the future will unfold. Adapted from Decisive by Heath and Heath

SUMMARY  Leaders and managers are central to the decision-making process.  Process matters - in many cases as much as the quality of the decision itself.  Know your style and its impact on others.  Leverage your strengths and talents; avoid decision traps.  Engage in consensus building and champion execution.  Avoid decision fatigue.  Be ever mindful of culture.

REFLECTION