Strategic Development

Strategic Decisions: Portal to the Future or Pathway to Confusion?

Fred was looking stressed as we sat down for a coaching meeting.  He was preparing for a critical Board meeting that involved “bet the farm” strategic decisions. 

“How will you make your decision about your recommendation?” I asked, looking for a portal into Fred’s decision-making process.

“We have run and re-run our models.  If we change one assumption slightly, the whole model goes negative!” Fred said, with a mix of frustration and fear.

My experience as a planning director, operations executive and coach/consultant helped me to broaden Fred’s perspective. I asked Fred to take a deep breath and step back from the models.

“What are the strategic options you are considering?” I asked, suspecting this line of inquiry would be more helpful.  Fred responded with a litany of problems and risks that made every option unworkable. 

Fred was faced with a strategic decision he was not equipped to make.

By the end our coaching meeting Fred left with a clear set of options and a plan for deciding on a recommendation.  We used a few basic principles that can be applied to all important decisions:

·      Decision making integrates the three centers of human intelligence—intellect, emotional understanding and gut knowing.  Most of us approach decisions with an intellectual or cognitive assessment. This is important because it helps eliminate dumb decisions and narrow the range of wise decisions. However, a purely intellectual assessment seldom, if ever, leads to a wise decision. Wise decisions account for the emotional forces that influence motivation and passion, bias and blind spots. Wise decisions also incorporate a gut understanding of what will and what will not be effective. In my discussion with Fred I made sure that I allowed for access to all three centers.

·      Manage the Three Decision Traps:  When faced with high risk, complex decisions, it is common for leaders to fall into at least one of these traps:

Ø  Impulsively make a decision to relieve tension and get into action, any action.

Ø  Retreat into more analysis looking for the “best” solution.

Ø  Refocus energy on more manageable and productive short term tasks.  

Navigating these pitfalls requires self awareness and self management skills. I helped Fred to see that his tendency was to retreat into analysis and then make an impulsive deadline-driven decision. Together we created a more effective strategy.

·      Take Problems and Risks Head On: Leaders often fall into three other decision making traps:

Ø  Ignoring or downplaying problems and risks.

Ø  Becoming paralyzed by the problems and risks.

Ø  Compulsively trying to account for “all” problems/risks.

I helped Fred understand that he was vacillating between ignoring risks and being paralyzed by them. He left our meeting with a plan for identifying the most important problems/risks and mitigation strategies for each.

After our meeting, Fred worked with his staff to develop a recommended approach that he took to his Board. His recommendations were adopted with some important modifications and he is now focusing on execution. As he moves into action, he has a new competency in the art of strategic decision making.    

Art Haines is an executive coach who works with leaders, managers and individual contributors to address tough, multi-dimensional problems. Art’s clients are often seasoned mid-career professionals who want to develop the capacity to reach a new level of development and accomplishment in their professional and personal lives. He excels in working with clients who are confronted with a complex mix of personal, interpersonal and business issues. His capacity to bring wisdom, objectivity and sensitivity to difficult situations is a great benefit to his clients. More on Art>