Data-driven Organization Design by Morrison Rupert

Author:Morrison, Rupert
Language: eng
Format: epub
Publisher: Kogan Page
Published: 2015-09-21T11:45:36+00:00

FIGURE 3.4.10 Playing like novices or pros

FIGURE 3.4.11 Decision-making combinations

One of the elements to define here is who has veto power or must approve the decisions. Figure 3.4.11 highlights how the number of conversations and politics rapidly increase as approvers are added. Imagine a world where there is only ever one approver. In that world, there is only one person to influence or lobby. That one person doesn’t need to lobby anyone else. That person ‘just’ needs to do his or her best to make the right call. The downside, however, might be that that one person doesn’t have all the right perspectives and motives to make the right decisions. So, you add another person into the mix. Now there are two minds at work, but also two people who need to attend a meeting or be part of a process to agree the decision. As you add more approvers, the number of possible 1-2-1 conversations grows factorially as shown in Figure 3.4.11.

Then think through what happens if people don’t agree. Does nothing happen, does it get escalated or is there endless horse trading of decisions? The question you have to ask is whether the increase in decision-making quality is worth the extra cost. Equally, the assumption that the more people involved means the better the decision isn’t always true either. Committees don’t always do the best thing and will as a rule of thumb be more risk averse. Therefore, quantify the numbers of those involved in the DMP. Think through whether the increase in the number of approvers will lead to better results.

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