4 Ways a Company Officer Avoids an Ugly Decision

There are three types of decisions: the good, the bad and the ugly. A good decision is one that has no risk or pratfalls. A bad decision is one that has some risk that turns out negatively. An ugly decision is one that is the opposite of what you should have done. Paul Nutt differentiates good, bad and ugly decisions:

Good decisions have discernible qualities:

1. Understand the need for the decision: what needs to be decided and why?
2. Root cause analysis: determine what is the actual cause of an issue and addresses that root cause.
3. Appreciate the political reality of stakeholders and manage their expectations.
4. Analyze the data and reduce it to key points.
5. Be aware of biases in decision making (sacred cows, risk aversion, hidden agenda, etc).
6. Be open to diverse views and work-through alternatives and options.
7. Present a credible case. This records and presents the rationale behind the decision, not just the decision itself.
8. Move to action. The decision should include a strategy on what to do next to avoid paralysis by analysis.

Bad decisions can come from poor methodology.

1. Failure to learn. Many organizations and decision makers do not evaluate past decisions to see what they can learn. They repeat mistakes.
2. Looking for excuses for bad decisions or for failing to make good decisions.
3. Grabbing the first possible solution rather than investing a little more time and resources to consider alternatives.
4. Not considering the department’s goals or vision: does this decision move us towards achieving the department’s goals or vision?
5. Failure to manage forces stirred up by a decision. In complex social decisions, there will be perceived winners and losers and forces aligned against you. Your decision is not good if it will be stopped by these forces.
6. Running roughshod over ethical interests and issues.
7. Manipulating or being selective on data to deliver a “preferred” result.

Ugly decisions tend to arise when:

1. We bet the bank. We take on far more risk than we can survive and often with a poor understanding of the consequences.
2. We allow ourselves to be pushed by parties that will not suffer as much as we do.
3. We ignore dissenting voices that have something to offer.
4. We do not change course when it is obvious the decision is going bad.

Company officers are not sure that a decision is the best choice for the situation. Decisions are made based on the information available, along with our background and experience. Often we make important decisions without checking with our peers or supervisor.

Ugly decisions occur when we boldly march into the unknown with no intention or ability to evaluate the results or impacts of our decisions.

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Nutt, Paul C. (2002) Why Decisions Fail: Avoiding the Blunders and Traps That Lead to Debacles.  Oakland, CA: Berrett-Koehler Publisher

Based on his analysis of 400 strategic decisions made by top managers in areas such as products and services, pricing and markets, personnel policy, technology acquisition, and strategic reorganization, Nutt estimates that two-thirds of all decisions are based on failure-prone or questionable tactics. He uses the fifteen monumental decision-making disasters to illustrate the potential consequences of these common tactical errors and traps and then details successful alternative decision-making approaches. Paul C. Nutt is a professor emeritus of Management Sciences and Public Policy and Management in the Fisher College of Business at Ohio State University

Featured image was taken by Glenn E. Ellman for Jones and Bartlett Learning and is taken from Fire Officer: Principles and Practice, 3rd edition.