decision making

Better Decision Making for a Better Life

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Have you ever wondered why some people continue to make bad decisions? You see million-dollar celebrities doing it. You can see this action in government officials and business leaders. There are no discriminators. From the very rich to the poorest of the poor, we see people caught in a vicious cycle of bad decision making. Sadly, we see it much closer than that. We witness relatives making those bad decisions. Despite all the wise counsel, the poor decisions continue.

 Why is it important to teach people how to make better decisions? Anthony Robbins, author of Awakening the Giant Within, attributes good decision-making as a key attribute to a happy life. Bestselling author Brian Tracy argues, “The further you think into the future, the better decisions you will make in the present to assure that future becomes a reality.” Making better decisions improves the quality of one’s life.

 

As a young advisor and college professor, I constantly hear students proclaim, “I’m grown.” This statement implies I don’t have to listen to anyone. I know best. Therefore, I can make my own decisions. Through series after series of bad decisions, the youth continues on merry ride of worsening consequences. Two things generally can stop this dead-end trap.

One lies in becoming more mature with age, and the other is experience. In going through a series of bad decisions, a wise person gains insight on the consequences of a bad decision. Every person, regardless of their background or social standing, can benefit from good decision-making techniques. Here are some methods to use: (a) define the problem or issues, (b) conduct research on the matter, (c) discuss with respected individuals with similar circumstances, (d) consider at least two alternatives, (e) select best decisions, based on your value system, and (f) move on and accept any consequences.

Making the right decision is a difficult process. No one will usually applaud your many good decisions; however, you will probably catch heat over the bad ones. Les Brown, author of How to Become the Person You Always Wanted to Be-No Matter What the Obstacle, explains, “Your values are not set by government or church leaders. Your values give you consistency in the way you approach life…By holding to your beliefs, you can always stay on track toward your dreams.”  By making better decisions, individuals can look forward to a better quality of live.

 

© 2014 by Daryl D. Green

 

The Nature of Effective Problem Solving

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Our youth program continues to grow at my church.  Of course, it is a simple formula as our church is one of the biggest in the area.  Church going parents make it mandatory for their children to attend church and participate in church services.  However, when the children graduate from high school and became young adults, their attendance becomes very low or non-existent. 

At that time, Velma Biddles was the youth leader and fairly new to the position.  She and her youth advisors have seen the shift of young people’s attitude.  If churches want to be effective with youth, they must change their underpinning message of: “Children are to be seen and not heard.”  Our youth advisors started to deal with the root causes of matters concerning our youth. Sadly, many businesses are spending millions on symptoms. What about you? 

Good problem solving can be an asset in an organization.  Some organizations find themselves solving the wrong problems and getting less than desired results.  Other managers assume that good technical staff members are naturally good problem solvers.  However, this observation is not necessarily true.  Effective problem solvers often have an intuitive skill set or enough training in problem solving for finding the right problems and making the best decisions.  

 John Gamble and Arthur Thompson, authors of Essentials of Strategic Management, outline the importance of filling key managerial slots with people who are good at figuring out what needs to be done and possess skills in effective implementation and in producing desired results.  They note, “No company can hope to perform the activities required for successful strategy execution without attracting and retaining talented managers and employees with suitable skills and intellectual capital.”  A problem can be defined as ‘an obstacle that stands in the way of achieving a desired goal.’ In fact, problems are divergences from the preferred outcomes.  

The basic problem solving stages include: (a) Identify the problem, (b) Gather information, (c) Clarify the problem, (d) Consider possible solutions, (e) Select the best option, and (f) Make a decision and monitor the solution. High performing organizations move beyond superficial problem solving in order to get to the root causes.  Good businesses realize that uncovering the real problems can be beneficial in many ways, such as reduced risks, cost savings, and greater efficiencies.  

Jeff Butterfield, author of Problem Solving and Decision Making, argues about the benefits of talented problem solvers: “People who can identify, define, and solve problems are valued members of an organization.” 

 

Like our youth advisors recognizing the problem and adapting appropriate solutions, today’s managers must be willing to move beyond their own bias to discover the real causes of problems.  Too many managers seek to major in the minors.  High performing organizations cannot afford to let this happen. 

In general, effective problem solving can be a great competitive advantage for organizations.  Formulating better decision making happens with more effective problem solving.  Businesses with talented problem solvers will have a greater capacity for sustainable success. 

Discuss your professional experience with problem solving in your industry or organization.

© 2014 by Daryl D. Green

Ethical Decision Making

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Ethical decision-making is important for businesses. Trust and integrity must not be lost. There are three ethical concerns for the sales organization, which are (1) cheating, (2) misuse of company resources, and (3) inappropriate relationships with other employees.  

In fact, losing a customer or client’s trust is fatal stroke for businesses. Famous management expert Stephen Covey suggests that trust is the cornerstone for productivity in the market. Once customers lose faith and trust in an organization, that organization has lost ground in the market. 

Employees are motivated by different stimulus.  In fact, different employees have different motivations.  Motivation produces psychological forces that determine the direction of a person’s behavior in an organization.  In my technical field, there are few things that are impossible to accomplish; it’s a matter of time versus money. 

However, finding these solutions depend on a personal drive.  In many organizations,  supervisors search for the magical ingredient to improve employee performance so that the organization can be successful.  This initiative isn’t easy!   

For example, a salesperson might be motivated to earn high commissions at any cost. He knows his management is only concerned with the bottom-line. At the end of the year, his sales manager responses in anger to this salesperson, “You’ve committed the company to something to which we cannot commit.” Therefore, being promoting selfish behavior can cost a business in the long run.

 

Organizations must train and create a good ethical environment.  Gareth Jones and Jennifer George, authors of Contemporary Management, further argue effective managers fully utilize their human resources to gain a competitive advantage.  Developing the desired behavior in employees is invaluable. 

In many cases, employees exist in a transactional relationship (if you do this, you will get that).  For example, a sales representative for Mary Kay will get a pink Cadillac if she reaches the designated sales limit. In fact, business perks are pretty routine. 

Most people have an internal compass that allows them to distinguish right from wrong.  For example, an employee might be tempted to take a bribe from his company’s competitor.  Johnston and Marshall make a clear distinction between a gift and a bribe. A bribe is a financial present given to manipulate the purchase decision. 

In an effective ethical system, an employee would not compromise the trust with the company, including any internal customers (supervisor, manufacturing group, etc.). 

Finally, there will be numerous situations that test a person’s moral behavior in organizations.  Ethical decision making is a way of life. Businesses must create good ethical systems where employees are accountable for their conduct.  Trust must be at the center stage of the process. 

Discuss your professional experience with making ethical decisions in your industry. 

© 2014 by Daryl D. Green

Decision Making With Unintended Consequences

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As the clock strikes midnight, the world once again brings in another new year with anticipation.  For many people, the last several years have been filled with financial crisis and personal turmoil. 

With the realities of globalization, one country’s misfortune can have negative consequences for other countries across the world.  Therefore, a new year brings a lot of uncertainty for the future.

Furthermore, today’s businesses must be ever on guard for market turbulence and global threats.  Given this reality of personal consequences, individuals must be more mindful of effective decision making. In fact, bad decision making can hurt an organization as well as an individual. 

Denis Collins, author of Business Ethics, notes that the prevalence and costs of unethical decision making at work can be substantial for businesses. Therefore, good decision making can dilute a competitor’s advantage. In this discussion, we will examine how decision making can carry unintended consequences. 

Today’s leaders must consider the aftermath of their poor decision making. Sadly, many folks fail to understand the consequences of their decisions. For example, Vanessa Williams was one of these fallen Hollywood icons. In 1983, Williams became the first African-American woman to be crowned Miss America. 

However, her immediate success was short-lived due to a scandal. Consequently, Williams was forced to relinquish her title; she probably did not think her youthful deed would come back and wreck her dreams. Yet, the consequences not only damaged Williams but her family, friends, and millions of her fans. Nobel Prize author Albert Camus once noted, “Life is the sum of all your choices.” In spite of all wise counsel, some people seem to have a knack for making poor decisions. 

Sadly, many poor decisions have unforeseen impacts.  Nancy Cavender and Howard Kahane, authors of Logic and Contemporary Rhetoric, argue for better decision making under this financial crisis: “Now, more than ever, we need to think critically about the world we live in and the decisions we make.”  They point to the dire consequences of poor decision making.  In fact, these circumstances often can be traced back to a root cause. 

The Law of Unintended Consequences relates to any purposeful action that will generate unintended consequences. This law can be categorized into several areas: (a) a positive unexpected benefit called serendipity, (b) a negative effect which is contrary to the original intention, and (c) a potential source of problems which is commonly referred to as Murphy’s Law. 

Like Murphy’s Law, some decisions may appear to afflict some people as if their lives are cursed. Making the right decision is a difficult process. No one will applaud your many good decisions; however, you will probably catch heat over the bad ones. 

In fact, every person, regardless of their background or social standing, can benefit from good decision-making techniques. In this life, most people make decisions to the best of their abilities. When various things happen, especially bad ones, individuals must be ready to deal with them. Therefore, understanding unintended consequences can assist in helping us make better decisions for the future.   

 Discuss your understanding of the Law of Unintended Consequences as it relates to effective decision making.

 © 2014 by Daryl D. Green

Ethical Decision-making in Business Operations

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Last week, we had a special guest come to our MBA class. Rev. Anthony Rodgers, author of How God Restored My Life, shared with us his personal story that showcased a lifestyle of prestige, power, and wealth.  However, this pathway was through illegal and criminal behavior that the average individual would find distasteful.

Rev. Rodger’s was transformed; his life has become a symbol of how individuals can be redeemed and changed.  His lifestyle of drugs and crime are demised.  In the same vein, some business managers act immorally, unethically, and participate in illegal activities that can get organizations into trouble.  Do you remember Enron?  BP Oil?  There is a laundry list of these organizations.

If organizations are serious about having profitable operations, they must have good ethical systems.  Operations management does not exist in a vacuum; other business areas must be considered. Marketing and strategy are underlining principles that must be addressed for organizations selling abroad.

Michael Johnston and Greg Marshall, authors of Relationship Selling, argue that customers who reside in other countries pose unique ethical concerns for salespeople and management, especially in (1) cultural differences and (2) differences in corporate selling policies.[1]

Regis McKenna, author of Relationship Marketing, further suggests that effective marketing is the integration of the customer into the design of the product; to design a systematic process for interaction will create substance in the relationship.[2] Creating a good ethical system is critical for success.

First, any meaningful, ethical program must start with senior management behavior. In fact, ethical behavior must start at the top. Salespeople are not the only members of the sales force who face ethical concerns. Management must address significant ethical issues with (a) salespeople, (b) company policies, and (c) international customers and policies.

I do think that organizational culture is the cornerstone for understanding the ethical environment. Trust is the foundation of any meaningful corporate structure.  Gareth Jones and Jennifer George, authors of Contemporary Management, maintain that when leaders are ineffective, chances are good that workers will not perform to their capabilities.

Johnston and Marshall further suggest senior management style (do their actions match their words), the established culture of the organization, and external forces can create a climate where unethical or even illegal behavior is tolerated.[3] Therefore, senior managers should lead the way by example.

Second, the organization must evaluate the current corporate culture. There are both written and unwritten rules and behaviors that come into play. For example, Enron senior management demonstrated a lack of moral and ethical judgment that played a critical role in its decision-making (i.e. breaking laws) policies.  Therefore, one must review the organizational culture of the organization before attempting to implement an ethics program.

Last, the organization must be committed to a win-win approach. Companies need to have a plan for implementing ethics. However, these plans need to involve the workers. Typically, executives come up with a mandate on corporate policies and HR is forced to implement them.  There is little worker involvement.

Yet, ethical conduct impacts everyone.  Employees at various levels face ethical issues all the time. Their input would be invaluable. This fact has a great bearing on ethical behavior among employees.

Discuss your professional experience on how ethical decision making can impact business operations.

 © 2013 by Daryl D. Green

[1] Relationship Selling by Michael Johnston and Greg Marshall

[2] Relationship Marketing by Regis McKenna

[3] Contemporary Management by Gareth Jones and Jennifer George

Unintended Consequences

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As companies after company fail in the same industry, I wonder why some organizations continue to follow the same deadly path. In most cases, it starts with managers who do not think about the consequences of short term decisions over the long haul. Sadly, hasty decisions can impact not only the individual but others around them. Several famous individuals have been impacted by this reality.

For example, Vanessa Williams was one of these fallen Hollywood icons. In 1983, Williams became the first African-American woman to be crowned Miss America. However, her immediate success was short-lived due to a scandal.

Consequently, Williams was forced to relinquish her title; she probably didn’t think her youthful deed would come back and wreck her dreams. Yet, the consequences not only damaged Williams but her family, friends, and millions of her fans. In this session, we will examine the impacts of unintended consequences.

Have you ever wondered why some people never consider the aftermath of their bad choices? Many people fail to understand the consequences of their decisions. Nobel Prize author Albert Camus once noted, “Life is the sum of all your choices.” Some people rationalize that an apology or a pitiful stare will erase all of the damages. 

I hear it all the time: “I’m sorry. I didn’t mean for that to happen.” Instead of just chalking it up to immaturity or youthful ignorance, I just cannot make that case because we are often talking about adults, not children. These adults should know better, but they act without realizing the effect of their actions. In spite of all wise counsel, some people live to make poor decisions.

Fortunately, these circumstances can be traced back to a root cause. The Law of Unintended Consequences relate to any purposeful action that will generate unintended consequences. This law can be categorized into several areas: (a) a positive unexpected benefit called serendipity, (b) a negative effect which is contrary to the original intention, and (c) a potential source of problems which is commonly referred to as Murphy’s Law. Additionally, the outcomes are not limited to the results that were originally intended.

Here are some examples of how this law works. A new bridge is built to give a secluded community access to a nearby shopping mall. However, this action results in increased crime in the secluded neighborhood and decreased sales for the mall stores. No one anticipated these unforeseen problems.

Another example is a caring parent who smokes cigarettes around his family. One child gets asthma and eventually becomes a chain smoker as an adult. Another child obtains a phobia related to smokers. In retrospect, the caring parent would have done something different if he had anticipated the long-term consequences.

Likewise, many managers may make alternative decisions if they understand the Law of Unintended Consequences. Furthermore, today’s leaders can be proactive in their decision making by considering the long term ramifications of most decisions.

Like Murphy’s Law, some decisions may appear to afflict some people as if their lives are cursed. Unfortunately, making the right decision is a difficult process. No one will applaud your many good decisions; however, you will probably catch heat over the bad ones. As a matter of fact, some individuals continue to ride a merry ride of worsening consequences.

Yet, it is often their own lack of foresight that haunts them. Eleanor Roosevelt said, “Somehow we learn who we really are and then live with that decision.” Every person, regardless of their background or social standing, can benefit from good decision-making techniques. In this life, most people make decisions to the best of their abilities. When various things happen, especially bad ones, individuals must be ready to deal with them. Therefore, understanding unintended consequences can assist in helping make better decisions for the future.   

 How do organizations anticipate the consequences of their decisions?  Can managers learn to make better decisions?

 © 2010 by Daryl D. Green

The Confession of a Decision maker

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I listen to chatter over the airwaves. Talkshow host Armstrong William leads a merry discussion on South Carolina’s Governor Mark Sanford.  Armstrong cannot contain himself: “How does Governor Sanford get rid of his Love Jones?” It was a question that was not easily answered. Listeners from South Carolina appeared irritated with this line of questioning.

Many felt the governor had abandoned his wife, children, and the people of South Carolina. On June 24th, Governor Sanford arranged a press conference where he confessed a year-long affair with an Argentine woman. He was missing for more than six days from his office.

At his press conference, political pundits argued Governor Sanford was attempting to save his job, not his family life. He was married and had four sons. Instead of a low-profile strategy, Governor Sanford actively engaged the media, describing his mistress as his “soul mate.”  Clearly, he had lost his mind! His wife Jenny stated, “I believe enduring love is primarily a commitment and an act of will, and for a marriage to be successful, that commitment must be reciprocal.”

Unfortunately, Sanford’s decision ruined his political career, strategic alliances, and the trust of the people of South Carolina. Yet, his personal loss was perhaps greater. He lost his marriage and the trust of his children. Therefore, some decision making carries long-term consequences for individuals and organizations.

Have you ever wondered why some people continue to make bad decisions? You see million-dollar celebrities doing it. You can see this action in government officials and business leaders. There are no discriminators. From the very rich to the poorest of the poor, we see people caught in a vicious cycle of bad decision making. Sadly, we can see it much closer than that. We witness relatives making bad decisions. Despite wise counsel, some people continue to make poor decisions.

The Decision Process

Decision making can make or break an organization. Joan Liebler and Charles McConnell, authors of Management Principles for Health Professionals, maintain that decision making is an essential element of management activities at all organizational levels. Gareth Jones and Jennifer George, authors of Contemporary Management, further argue that managers must respond to opportunities and threats. In fact, decision making is a process where individuals analyze and make determinations regarding a problem that is keeping with the organization’s goals and objectives.

Unfortunately, some people feel the decision making process is a solo operation. Some managers can be caught in this trap and disregard the expertise of their workers. Through series after series of bad decisions, the manager may continue on a merry ride of worsening consequences. Two things generally can stop this dead-end trap. The organization stops him or the organization tanks.

In going through a series of bad decisions, a wise person should gain insight. Unfortunately, some individuals who are in charge will learn nothing, thereby earning the label of a foolish manager. Every person, regardless of their background or social standing, can benefit from good decision-making techniques.

The Path Forward

Making the right decision is a difficult process. Like Governor Sanford, many managers don’t take enough time to evaluate short-term decisions for long-term consequences. No one will usually applaud your many good decisions; however, you will probably catch heat over the bad ones.

Les Brown, author of How to Become the Person You Always Wanted to Be-No Matter What the Obstacle, explains, “Your values are not set by government or church leaders. Your values give you consistency in the way you approach life…By holding to your beliefs, you can always stay on track toward your dreams.” Therefore, making good decisions goes to the heart of being an effective manager.

How do managers overcome the barriers of making bad decisions during uncertainty? Is it possible for a manager to involve their workers in critical decisions without giving up any authority?

  © 2010 by Daryl D. Green