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Upgrade Your Decision Making

 

By Jay Gary

 

As a small business consultant, I keep on the cutting edge of technology. I am constantly upgrading our virtual office software or exploring new ways of web conferencing to work with our internal and external partners. Yet we can place so much emphasis on upgrading our software that we overlook upgrading our team’s wet-ware. Wet-ware, or our collective mental processes, are always the final court of appeals we use to define problems, frame issues and make decisions.

 

In speaking of brain-power, I am not just referring to your cranium as a manager, but to your group’s. Warren Bennis says, “None of us is smart as all of us” (Bennis & Biederman, 1998). He writes about creative collaboration in Great Groups, led by great leaders. Contrary to our notions about collective stupidity and groupthink, James Surowiecki (2004) claims there is wisdom in crowds. He claims no matter how brilliant you are, you are better in a group to solve problems, foster innovation and reach wise decisions, provided the conditions are right.

 

 

So what are the right conditions? What is the fine print of group decision making? To answer this, let’s explore four decision making modes and explore how team players maximize their influence within each model. Using primary research in organizational decision making and sense making, this article modifies Choo’s (n.d.), decision matrix to cover four modes: rational, political, emotional and anarchy.

 

 

 

 

 

 

The Rational Mode

 

The first decision making mode is rational. When executives in a company like McDonald’s come together to decide where to place new restaurants in their U.S. markets, they make decisions in a rational mode. Their goal ambiguity and uncertainty is low. Comparatively speaking, their company faces a slow-changing environment. By working through traffic flow data, real estate prices, customer demographics and competitor analysis, they make a confident yes-no decision. While no one expects their business forecast to be exact, fast-food restaurants in particular, or organizations in general that work under these parameters, face “a clear enough future” (Courtney, 2001, p. 21). Group decisions can be made according to tried and true formulas, routines and performance equations.

 

The Rationale mode represents an ideal, an organization at its best in terms of knowing its environment. The problems have been defined, the courses of actions have been weighed, and the outcomes have been predicted. All that is left is to apply group cognitive ability to maximize profit. If you are a manager or group member in this mode, you already know how to shine—you display your technical expertise, whether in engineering, architecture or design, and refine the done-deal. Often when you are in the Rational mode, the premises by which the decisions have been framed are unquestioned and even unquestionable. But what if those premises could be questioned?

 

The Political Mode

 

When questions begin to arise over how you should allocate limited resources, decision making often shifts to a Political mode. In contrast to one choice that R&D, marketing and engineering must reach alignment over, the issue under consideration has several options and is ambiguous. Rather than act in a problem search mode as in the previous model, a group in the Political mode faces a value search. For President Kennedy, the 1963 Cuban Missile Crisis represented decision making in a Political mode. There was certainty about outcomes among his military and diplomatic advisors, but conflicting options on how to get there. Team members in this mode know that they have to compete internally for resources. They have to negotiate, jockey, bargain and convince other stakeholders of the value of their proposition.

 

Rather than a “clear enough future,” Courtney calls this “alternative futures,” as your group faces various mutually exclusive options (Courtney, p. 24). Schools and universities often operate in this environment. Their budgets are fixed, no matter how they invest their resources. So decisions are debated by school boards or Dean’s councils on where to commit available resources. The benefit to group decision making in a Political mode is that compromise often tempers extremes, as centrists did in the Cuban missile crisis. The risk of the Political mode is that the social pressure involved in bargaining can undermine trust and idealism (Lahti, 1996).  

 

The Emotional Mode

 

The third mode of decision making is the Emotional mode. This mode has often been overlooked in research, as emotions are usually thought of as irrational or as clouding judgment. Yet recent neurobiological studies “establish that emotion is indispensable in rational decision making” (Barnes & Thagard, 1996, para. 1). Unlike the Rational and Political mode, the Emotional mode is best suited when groups are operating in a changing environment and face high technical uncertainty. In this context of “a range of futures” (Courtney, p. 29), any one of which could happen, the value of rational analysis is diminished. In this mode, the priority is often to minimize risk and this is done by sharing ‘pain or gain’ stories. Barnes and Thagard (1996) claim emotions act as positive or negative somatic markers in our memory, allowing us to associate them with a prospective decision.

 

The benefit of this mode is it allows groups to draw upon their social and psychological reserves to make decisions beyond the facts. The danger in this mode is groupthink, or risky shift—that is, members making a decision together by emotion they would not make as individuals. Surprisingly, the best corrective to the downsides of the Emotional mode is greater exercise of emotional intelligence (Goleman, 1995). As a manager or team member you should be prepared to recognize, regulate and marshal your emotions and memory to influence others.

 

The Anarchy Mode

 

If a group not only faces external uncertainty, but also internal conflict, the decision making mode becomes anarchy, or as some descriptively call it, the ‘Garbage Can mode.’ This evocative term describes how organizations are often mixing bins of randomly mixed problems, opportunities and solutions. In this kind of organized anarchy decisions don’t follow linear processes or unidirectional maps. In reality, this mode says very little about the process of decision making (Beach, 1997), only that order does come forth from chaos! Courtney (p. 32) calls this quadrant “true ambiguity” and says these situations are rare. But managers should get ready for decision making in this mode when major discontinuities happen, or when markets are just beginning to form, as with genetics now, or like the economy faced in the mid ‘90s with online commerce.

 

The Last Word and Beyond

 

Upgrading our group decision making is a procedural science and a human art. While the Rational and Political modes can easily be accessed in programmed ways, the Emotional and Anarchy modes suit themselves to tackling un-programmed and unframed issues. Still research has yet to provide the last word on decision making. The field is still filled with mystery. One new frontier is exploring the role of collective insight (Nosek, 2004) and how groups pre-actualize the future. Otto Scharmer and his colleagues at MIT are investigating how fields, or deeper sources of learning, often attune groups to a future they jointly create. Their work opens up new avenues of research relating to our collective spiritual existence Scharmer, 2004).

 

Bennis and Biederman (1997) claim Great Groups work intuitively together so well because their work gets lifted to a higher plane. “Great Groups always believe that they are doing something vital, even holy. They are filled with believers, not doubters and.... know they are doing something monumental, something worthy of their best selves” (p. 5).

 

The upgrading of work to a transcendent level is the kind of upgrade that goes far beyond technology. It might start by reflecting on your decision making process, but ultimately it is an upgrade in building mutual trust, common vision and motivation, that takes all work to higher level.

 

 

 

References:

 

Beach, L. R. (1997). The psychology of decision making people in organizations. Foundations for organizational science). Thousand Oaks, CA: Sage.

 

Bennis, W., & Biederman, P. W. (1998, March). None of us is as smart as all of us. Computer magazine-IEE Computer Society, 31(3).

 

Bennis, W. G., & Biederman, P. W. (1997, April). Great Groups. Executive Excellence, 14(4), 5-6.

 

Choo, C. W. (n.d.) FIS 2149 Administrative decision making in information organizations: Lecture slides, retrieved May 24, 2005 from http://choo.fis.utoronto.ca/FIS/Courses/LIS2149/LIS2149.Slides.html

 

Courtney, H. (2001). 20/20 foresight: Crafting strategy in an uncertain world. Boston, MA: Harvard Business School Press.

 

Goleman, D. (1995). Emotional intelligence. New York: Bantam Books.

 

Lahti, R. K. (1996). Group decision making within the organization: Can models help? Retrieved April 11, 2005, from University of North Texas: http://www.workteams.unt.edu/reports/lahti.htm.

 

Nosek, J. T. (2004). Group cognition as a basis for supporting group knowledge creation and sharing. Journal of Knowledge Management, 8(4), 54-64.

 

Scharmer, C. O. (2004). Theory U: Leading innovation and change by presencing emerging futures. Retrieved from http://www.ottoscharmer.com/TheoryU.pdf.

 

Surowiecki, J. (2004). The wisdom of crowds: Why the many are smarter than the few and how collective wisdom shapes business, economies, societies, and nations. New York: Doubleday.

 

Thagard, P., & Barnes, A. (1996). Emotional Decisions. Proceedings of the Eighteenth Annual Conference of the Cognitive Science Society. Erlbaum, 426-429. Available from the Philosophy Department, University of Waterloo website: http://cogprints.ecs.soton.ac.uk/archive/00000619/00/Emot_Decis.html

 

 

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About the author:

 

Jay Gary is president of PeakFutures, a foresight consulting group in Colorado Springs, Colorado. Over the past twenty years, Mr. Gary has helped strategic alliances, foundations and communities create more preferable futures by helping them identity emerging issues and upgrade their strategic decision processes. You can find out more at http://www.peakfutures.com