Many decisions are based on instinct or gut feel (this just feels right). Some are based on precedent (that’s what we did before and I can’t be sure of the consequences if we do something different). Other decisions are based on partial analysis (I’ve looked at the figures and they stack up). Paradoxically, important decisions about whether businesses should merge are sometimes based on whether the leaders could do business together, whilst less critical issues, such as new IT systems, can go through rigorous reviews lasting months.
Many leaders lack a framework for making decisions. The Sherwood model below is not designed to take away the usefulness of experience and instinct, but it provides a more rigorous analysis and helps you see the consequences of decisions.
Step 1: Identify your options
- Describe the situation factually - it can help to make clear what is not included and what is “given” (i.e. cannot be changed)
- Dare to be innovative in terms of potential solutions to problems
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Step 2: Identify the criteria
- Each situation is unique and there may be special criteria to consider. However, the following six categories of criteria should be considered to see if they are relevant:
- Values and beliefs: these should underpin the culture of the organisation. When staff receive inconsistent messages they can become insecure and confused. For each option, consider what values would be communicated by that decision and how well they match those of the business
- Purpose and objectives: each option should be evaluated against the business objectives
- Stakeholders: identify stakeholders affected by the decision
- Timing: what is needed - a quick fix or long term solution or both?
- Competencies: does the business have the skills to implement this option?
- Resources: does the business have the resources to implement this option?
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Step 3: Weight the criteria
- Not all the criteria will deserve the same weighting. Some may be more important than others and your matrix should ideally make allowances for this
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Step 4: Evaluate the options
- The options should then be evaluated
- As a result of your analysis, you may decide to amend or combine some of your options.
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Step 5: Implement
- Create a course of action that reflects the decision and analysis made in Steps 1 to 4.
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If you need people’s commitment to some decisions, it can be effective to have groups of key stakeholders going through this process to build a consensus decision. This can assist leaders, when the tricky stuff really starts, to be unwavering in terms of seeing the decision through and dealing with any blockages.
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