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:
- 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?
- The Ties that Bind
- Changing anything in an organization reveals how it's connected to its people, to its processes, to
its facilities, and to the overall context. Usually, these connections reach out much further into the
organization than we imagine.
- Kinds of Organizational Authority: the Informal
- Understanding Power, Authority, and Influence depends on familiarity with the kinds of authority found
in organizations. Here's Part II of a little catalog of authority, emphasizing informal authority.
- The Restructuring-Fear Cycle: I
- When enterprises restructure, reorganize, downsize, outsource, spin off, relocate, lay off, or make
other adjustments, they usually focus on financial health. Often ignored is the fear these changes create
in the minds of employees. Sadly, that fear can lead to the need for further restructuring.
- Changing Blaming Cultures
- Culture change in organizations is always challenging, but changing a blaming culture presents special
difficulties. Here are three reasons why.
Forthcoming issues of Point Lookout
- Coming May 29: Newtonian Blind Alleys: II
- Some of our decisions don't turn out well. The nature of our errors does vary, but a common class of errors is due to applying concepts from physics originated by Isaac Newton. One of these is the concept of spectrum. Available here and by RSS on May 29.
- And on June 5: I Could Be Wrong About That
- Before we make joint decisions at work, we usually debate the options. We come together to share views, and then a debate ensues. Some of these debates turn out well, but too many do not. Allowing for the fact that "I could be wrong" improves outcomes. Available here and by RSS on June 5.
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- The Power Affect: How We Express Our Personal Power
- Many people who possess real organizational power have a characteristic demeanor. It's the way they project their presence. I call this the power affect. Some people — call them power pretenders — adopt the power affect well before they attain significant organizational power. Unfortunately for their colleagues, and for their organizations, power pretenders can attain organizational power out of proportion to their merit or abilities. Understanding the power affect is therefore important for anyone who aims to attain power, or anyone who works with power pretenders. Read more about this program.