Tag Archives: Decision Making
It’s an inescapable fact: We all have to make decisions. Wouldn’t it be great if we could systemically make better ones?
We all grow up to be decision-makers. Yet somehow there’s no well-established way to make high-stakes decisions well. That’s a problem since throughout life we’re faced with many of them — decisions that will have a long-term impact on our lives, but where the outcome is unknown, and the price for making the wrong decision could be costly.
Imagine if we all learned decision making before turning 18. Is there anything we do more frequently that has higher stakes than making good choices? If we could master decision making, I believe the world might get along just a little bit better, and everyone would live happier lives – and work smarter.
There is a system that can help us solve complex problems, and there is a way to do it that boosts our confidence in our decision-making capabilities and enables us to have the conviction that our solution has a good likelihood of succeeding.
I created one: the AREA Method decision-making system. I initially developed it to help me do better at my work as an investigative journalist. I was searching for a way to better control and counteract my mental biases, those assumptions and judgments that help us every day when making small decisions but that doesn’t go away when we need to solve complex problems. I also wanted to better understand the incentives and motives of the other people I was dealing with. (more…)
All organisations require a level of commercial awareness from their employees because it is an important skill for making good long-term decisions.
The more commercially aware you are, the more likely you will take into consideration all the important factors when selecting one option over another.
Use this self-assessment to gauge your current level of commercial awareness and help highlight the areas where you can improve.
The activity can also be used within a team learning environment.
Cause and Effect diagrams help you to think through causes of a problem thoroughly to enable you to make effective decisions. Their major benefit is that they push you to consider all possible options, rather than just the ones that are most obvious.
The approach combines brainstorming with a type of concept map.
Cause & Effect Diagrams are also known as Fish Bone Diagrams.
Using this approach can be a very positive way of engaging team members in the decision-making process.
To find out more about this model: HERE
To download a blank Cause & Effect template: HERE
This short paper sets out the overlapping features of effective leadership and of effective governance.
It highlights the key features of effective leadership and of effective governance, how leaders contribute to effective governance and how governance supports effective leadership.
Although aimed at organisations delivering children’s services, the messages within this short report are relevant to others.
We cannot all accountants but as a leader in an organisation, it can be useful to have a basic understanding of some of the key financial terms and processes used to manage the organisation's finances.
So, how does accrual accounting differ from cash basis accounting?
In simple terms, the main difference between accrual and cash basis accounting lies in the timing of when revenue and expenses are recognised.
The cash method is mostly used by small businesses and for personal finances. The cash method accounts for revenue only when the money is received and for expenses only when the money is paid out.
On the other hand, the accrual method accounts for revenue when it is earned and expenses goods and services when they are incurred. The revenue is recorded even if cash has not been received or if expenses have been incurred but no cash has been paid. Accrual accounting is the most common method used by businesses.
McKinsey Board Services helps CEOs and boards of directors to improve board effectiveness and leave more time for value-enhancing activities.
This collection of Insights from McKinsey experts and board practitioners draws on interviews with successful chairs from around the world, global board-member surveys, and the personal experience of subject-matter experts.
The compendium is structured into three main sections:
• The role of the board. Which activities should the board engage in, and how?
• Board structure and foundations. What foundation do you need to deliver on increasing expectations?
• Board effectiveness. How can you increase the overall effectiveness and impact of your board?
It will help you reflect on the effectiveness of your current Board and if it remains 'fit for purpose.
We all have preferred ways of doing things – including solving problems and making decisions.
This questionnaire can be used to help you gain an insight into how you approach these key business activities.
Facilitator guidance on how the activity can be used within a team meeting or learning event is also provided.