Special 5-Day Report

II. Decision Leaders:Who Are They, What Can They Teach Us?

by Kepner-Tregoe

The Kepner-Tregoe study "Decision-Making in the Digital Age" revealed some issues of concern about the speed and quality of decisions today. The second, qualitative phase of the survey proved that there are bright spots on the decision-making landscape.

Based on their stellar financial performance, continual growth, and excellent reputation -- all indications of consistently superior decision making -- Kepner-Tregoe selected 12 Decision Leaders: The AES (Applied Energy Systems) Corporation; Robert Bosch Pty. Ltd. (Australia); Citigroup Inc.; Corning Incorporated; DaimlerChrysler AG; Fuji Photo Film, U.S.A., Inc.; The Home Depot, Inc.; Honeywell; Intel Corporation; Johnson & Johnson; Novell Inc.; and Oracle Corporation. Kepner-Tregoe then conducted in-depth interviews with key decision makers at each of these companies to determine precisely how they have been able to hold in dynamic tension the often-conflicting requirements of speed and quality. From this research the consulting firm isolated SEVEN PRECONDITIONS that are common to several or all of the Decision Leaders. Taken together, they provide an integrated approach to dealing with the challenges of decision making in the Digital Age.

This article will focus on the first two:

I. Vision-Driven Decision Making

When push comes to shove at Fuji Photo Film, U.S.A. and there is little time to ponder a decision, employees cut through the clutter by asking themselves one question: How can I satisfy the customer? By tying decision making to a strategic objective, this overarching question provides the focus needed to move quickly into action.

Decision making can be a gut-wrenching and time-consuming process, especially when it occurs in a vacuum. Vision helps define the playing field for decision making. When everyone in an organization is clear about the products and services it will offer, the customers it will serve, and the kinds of relationships it seeks to build, there is no need to continually revisit that edgy, time-consuming question, Why? The boundaries around what is required, what is permissible -- and what's not -- are clearly demarcated. Decision making moves at the speed of a reflex action.


II. Ruthless Prioritization

In an ideal world decision makers would never have to sacrifice quality to gain speed. But in the real world tradeoffs must be made. Sometimes these have few or no negative consequences; at other times they can lead to disaster. How do you know when you can safely hedge on quality in favor of speed?

When Decision Leader companies are faced with this question, they fall back on an axiom that they know to be true: Not all decisions are created equal. Some leave no room for failure; others can be less than perfect. To determine which decisions fall into each category, Decision Leaders invest a substantial amount of time setting priorities, and they are ruthless about adhering to them.

At Corning Incorporated, the operative work is breakage. Alan Eusden, vice president and general manager of Corning Optical Fiber, explains, "When we are faced with the speed-quality dilemma, we first set priority by examining the impact the decision will have company-wide. Next, we assess whether or not we can tolerate any breakage in the speed-quality equation -- either by making a slightly less-than-optimal decision on time or by taking the extra time to ensure higher quality. When it comes to top priorities, we consciously decide not to allow either kind of breakage: to protect quality, even if it's at the cost of speed."

Editor's Note: The next article in this series will look at the third pre-condition: A Decision-Enabling Culture.


A complete copy of the Kepner-Tregoe report Decision Making in the Digital Age can be purchased for $395.00, plus shipping and handling, from the Kepner-Tregoe website. Or contact Dolly Weldon-Gordon at 609.252.2665 or via e-mail at dweldon-gordon@kepner-tregoe.com. For more information about Kepner-Tregoe, contact Dr. Peter Tobia, via phone 609.252.2634 or e-mail: ptobia@kepner-tregoe.com.