When organizations decide to do something different from what they've been doing, the changes they undertake might involve changing more than what they do. Sometimes they must also restructure the way they make decisions. For example, the relative importance of software engineers and actuaries in insurance companies has changed significantly in the past 50 years. Although software engineering is more important today in such organizations than it once was, one can debate whether the political power of the people engaged in software engineering today parallels the importance of their profession in executing the mission of the organization.
Elective change in organizations sometimes exposes conflicts of interest between the interests of the organization and the interests of the people who must make the decision to change. In some cases, this conflict of interest is resolved not in the favor of the organization, but in favor of the personal interests of the decision makers. When that happens, the organization remains stuck on paths that lead to stagnation, contraction, and — possibly — bankruptcy.
What can we do about this? Here are four suggestions for enhancing decision quality.
- A pattern of participation in decisions that affect the personal interests of the decision makers is a performance issue. In politics and jurisprudence, excusing oneself from such participation is called recusal. The practice is rare even there, but with the exception of certain professional standards, it's almost totally absent from organizational life. Would not organizations that succeed in incorporating recusal into their decision processes gain significant advantages in decision quality?
- The dual of recusal is inclusion. In most organizations, the same group of decision makers makes all the big decisions. From time to time, they do seek advice from specialists, but the specialists' role is advisory only — they rarely have decision authority. Are there not classes of decisions that would be improved by including some people who are customarily excluded from decision making?
- Decision process risk management
- Even among A pattern of participation in
decisions that affect the
personal interests of the
decision makers is
a performance issueorganizations that recognize the importance of risk management, risk management practice tends to emphasize what the organizations does, rather than how the organization makes decisions. Certainly all organizations make bad decisions once in a while. Can we not use risk management principles to protect ourselves from these mistakes?
- Most important, perhaps, is a practice often called "lessons learned," or retrospectives. Retrospectives help us avoid repeating our own mistakes — or the mistakes of others. Although widely used in the lower reaches of the org chart, they are much less common at high levels. Why do you suppose that is? Could it be that requiring self-examination of others is easier than asking it of oneself?
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More articles on Organizational Change:
- Pick-Up Sticks and the Change Game
- When we change organizational culture, we often stumble over unexpected obstacles. Sometimes the tangle
can be so frustrating that we want to start the company over again. Here are some tips for managing
large-scale cultural change.
- Plenty of Blame to Go Around
- You may have heard the phrase "plenty of blame to go around," or maybe you've even used it
yourself. Although it sometimes does bring an end to immediate finger pointing, it also validates blame
as a general approach. Here's how to end the blaming by looking ahead.
- He's No Longer Here
- Sometimes we adopt inappropriate technologies, or we deploy unworkable processes, largely because of
the political power of their advocates, and despite widespread doubts about the wisdom of the moves.
Strangely, though, the decisions often stick long after the advocates move on. Why? And what can we
do about it?
- When Change Is Hard: II
- When organizational change is difficult, we sometimes blame poor leadership or "resistance."
But even when we believe we have good leadership and the most cooperative populations, we can still
encounter trouble. Why is change so hard so often?
- Way Over Their Heads
- For organizations in crisis, some but not all their people understand the situation. Toxic conflict
can erupt between those who grasp the problem's severity and those who don't. Trying to resolve the
conflict by educating one's opponents rarely works. There are alternatives.
Forthcoming issues of Point Lookout
- Coming December 13: Contrary Indicators of Psychological Safety: I
- To take the risks that learning and practicing new ways require, we all need a sense that trial-and-error approaches are safe. Organizations seeking to improve processes would do well to begin by assessing their level of psychological safety. Available here and by RSS on December 13.
- And on December 20: Contrary Indicators of Psychological Safety: II
- When we begin using new tools or processes, we make mistakes. Practice is the cure, but practice can be scary if the grace period for early mistakes is too short. For teams adopting new methods, psychological safety is a fundamental component of success. Available here and by RSS on December 20.
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