Leadership Lessons 26 : Making Decisions

 Leadership Lessons 26

Making Decisions

Making a decision is making an informed choice and articulate in a precise manner to the key stakeholders. Communicating a decision in a timely manner is as important as making a decision.

Once PV Narasimha Rao, former Prime Minister of India, was asked why he was not taking a decision. He famously said " Not taking a decision is also a decision "!

When not to take a decision too is a leadership judgement and choice.

In the context of managing an organization, or a business or government, the ability to make decisions are an elemental quality of both management and leadership.

In the context of management of any team or an organization, decisions are of four types :

Strategic decisions, management decisions, operational decisions and everyday practical decisions..

Each of these decisions will depend on the context, actors, resources, and consequence. Every decision requires an ability to understand and analyse those four aspects.

Strategic decisions are the decisions that affect a large number of people over a long period of time, with decisive impact in the making and shaping of the future.

Strategic decisions are required in making choices from the available options in initiating a new policy, project, institutions or amending or ending a policy or programs. Any strategic decision requires strategic analysis of the context (external and internal ),available resources, affected people, pros and cons, short term as well as long term consequences.

Strategic decisions require consultation with key stakeholders, seeking expert advice, excellent domain knowledge, assessing resources, exploring the best available options and seeking the most imaginative as well as feasible options.

Strategic options need to be taken after careful consideration and leadership judgement. Leadership judgement depends on the deep sense of values, convictions, intelligence, and ability to asses risks and making a choice with strategic analysis of all these.

In the context of an organization, all major decisions, and management decisions are based on policies, and systems of that organization. Policies and system of an organization are dependent up on laws of the land and the constitution of a country. Hence, all strategic and management decision need to be in consonance with policies and system of an organization and the laws of the country.

In any strategic decision in the government or an organization will have to consider seven questions

a). How much budget is required and where will the financial resources come from?

b) System has the capacity to deliver?

c) Who will deliver?

d) Is it in consonance with the laws /Constitution of the Land?

e) Is there a transparent system for follow up, reporting and accountability?

f) What are implications and consequences to various constituencies?

g) What are possible and unforeseen risk assessments and risk reduction.?

The most difficult decision making in life and organizations is the strategic decision as it affects the future of the person, organization, or that of a country.

Management decisions are usually made on the basis of the existing norms or systems and policing, resources, and people . Within the context of an organization, management decisions are taken by a senior management team, and in consultation with affected people.

In any staff related issues need to be in consultation with the staff or their representatives. The quality of an organization depnds on whether the organization has a transparent, predictable policies and systems that help to make quick and effective management decisions. Such systems and policies are important for delegating management decisions.

In the hierarchy of decision making, operational decisions are done by managers on the basis of resources, practical consideration and technical skills. A good organization will have SOP, a standard operating procedures and manual. Everyday decision are required in the day to day management and implementation of a project or program.

One of the most important qualities of confidant leadership is the ability to delegate decision making and ability to take timely decisions.

A confident leadership will nurture great leaders and managers at every level of an organization. A confident leader will provide space for other leaders and managers to demonstrate their talents, and creativity.

When each person will feel that is his /her own project, they give the best. A sense of ownership will enhance the capability and imagination.

Those with leadership quality will delegate, and ensure space for others to use their creativity. However leaders need to be around for trouble shooting and risk management. The most important quality for delegating decision making is the trust and confidence in your team. Those who trust her/his colleagues will not do micro management.

I will end the note with a personal experience of strategic decision making.

Tsunami Response and Sri Lankan Lessons

Tsunami happened on 26 December, 2004. It was a Sunday. I had a message about Tsunami around 11.30 am. I was the leader of an international organization. I had to quickly act. Within half an hour, I packed and took a taxi to an affected area in Alappad Panchayath, in Kerala .I got a first hand information about the extant of the devastation.

In the taxi, I did consult with all colleagues across the world, assessed the situation and knew that the impact was huge and unprecedented.

I had to take immediate strategic decisions regarding the impact, budget, team and strategy in several countries. This required taking to all stakeholders at every level and who would do what in each of the affected country. We simply didn't have a system to cope up with. Neither we had a SOP. This was also the case of the governments in different countries. Tsunami was new and unprecedented international devastating disaster.

In an emergency or a crisis, you simply don't have the luxury of time. One has to think on the feet, make quick assessments and take cautious decision, in consultation with all, with a sense of future scenarios and risks.

When I was at Trivandrum airport, I received a call from Sri Lanka. The person on the other end was the Advisor to then then Prime Minister of Sri Lanka, Mahinda Rajapaksha. I knew them both and advisor has been a close friend. The situation in Sri Lanka was devastating. They desperately needed support. However, our organization didn't work in Sri Lanka. I simply could not take decision as it had to be the decision of the international board.

I had to make quick assessment, write to all senior international colleagues and at the end of few hours, they approved a mere 50 K USD. I had to find someone immediately to go to Sri Lanka and delegated a trustworthy person (now an internationally well known disaster response expert ).

I too flew to Colombo. I joined the Sri Lankan Prime Minister in a helicopter to take an areal assessment. And after visiting the affected area in Humbanthotta, realized how unbelievable was the devastation.

I came back to Colombo and announced a five million dollar support. The fact of the matter was I got approval for fifty thousand and I end up announcing 100 times more. Of course it was a huge risk as we didn't have allocation or resources in the Bank. My colleagues who trusted my judgement was also very anxious. If the money didn't come, it would have been a management disaster.

However, my leadership judgement and strategic decision was correct. As I predicted there was huge international support and funds. The rest is history . If I remember correctly our organization spent more than 60.Million US Dollors.

Our Sri Lanka Tsunami response team truly became international. Many of them are now excellent international leaders and professionals. One is leading the global network on Disaster Management. Others have emerged as leaders and managers.(Many of them may even be reading this

Sri Lanka taught me a lots of leadership lessons in crisis management, nurturing new leaders and learning from all of them. Hence, it is still one of my favorite counties with lots of friends.

JS Adoor

To be continued