Decision making framework can help us make decisions swiftly, post-analysis of the facts and other related information. What is decision-making? Is it essential in the corporate sector?
Chances are, you already know the answer to this question, don’t you? Decision-making is one of the most essential skills that a corporate employee must have.
Don’t believe me? Let me give you a relatable example. It’s a typical Monday morning, and you’re reviewing your calendar to see your plans. In addition, you see that your day is unusually light except for two meetings.
This is one of how your decision making skills will help you ace corporate! One of the essential leadership skills, decision-making, enables you to achieve your goals one day at a time.
How Does the Decision Making Framework Help?
The two meetings in the above example are with your team for an upcoming presentation and another with your manager. Both of them are pivotal, if not equally important. Suddenly, your co-worker comes in with a request to conduct a small session with the interns.
You think it’s not an issue until they tell you the timings, and you check your calendar to find that it’s clashing with the meeting with your team.
Corporate crossroads, huh? What do you do? Do you accept your co-worker’s request at the expense of a prior commitment? Or can you easily say no? Interns need to be briefed about how you guys work here, though.
But what’s the big deal here? You could simply say ‘No’ to the co-worker, seeing how you have that vital team meeting. It’s not that easy when you want to build a collaborative environment where you can rely on your co-workers when the time comes.
If I had been in that situation, I would ask my co-worker if the session could be rescheduled to a different time. Of course, explaining to them the importance of my prior commitment and how I’m willing to help could only be at a different time.
It could go two ways- either the session reschedules, and you save their day, or you have to pass on the request, directing the co-worker to someone available for it.
That’s decision-making 101, right there. Neither do you come off as rude, nor do you feel wrong about being unable to help your co-worker.
The Decision making framework comprises steps you can take when a sticky situation arises.
Understanding Decision-Making Framework
A decision making framework guides teams and individuals through identifying a problem, generating solutions, and evaluating the options. Thus, this helps make a final decision. This structured approach helps in the process of problem-solving, thus enhancing the quality of decisions.
All the relevant factors require consideration so that the approach can be aligned with the strategic objectives. In leadership, the decision-making framework is one of the top leadership skills. It sets apart influential leaders.
The skill demonstrates the leader’s ability to approach challenges methodically and ensure consistent, transparent, and justifiable decisions are made. When leaders use this framework, they seamlessly involve team members in the process leading to inclusive decision-making that fosters a collaborative environment.
Here are the six decision-making frameworks that leaders often employ to guide the decision-making process.
Top 6 Decision Making Frameworks Leaders Use Today
Now that the decision making framework and its importance are clear to us, let’s explore the top six frameworks that leaders use:
Rational Decision-Making Model
Leaders widely use the rational decision-making model. It is a logical and systematic approach that comprises the following steps:
- Identifying the problem: Leaders define the issue that requires their attention.
- Gathering information: collecting information and data that is relevant to the issue
- Generating alternatives: This is when leaders brainstorm possible solutions to guide the team through the issue
- Evaluating alternatives: This involves assessing the pros and cons of each option, which helps choose an effective solution
- Choosing the best alternative: This step is when the leader chooses the best alternative that can fit best to the situation
- Implementing the decision: This step is when the chosen option is put into action
- Evaluating the decision: The leader, along with the team, reviews the result of the chosen decision and ensures the problem is effectively solved
This is a helpful model when decisions require thorough analysis and careful consideration. It aligns well with the contingency theory of leadership as it emphasizes adopting a decision-making approach depending on the context.
Vroom-Yetton Decision Making Model
The Vroom-Yetton decision-making model focuses on the leaders and helps them decide on the appropriate involvement of their team. This model considers factors such as the importance of the decision, the need for the team buy-in, and the level of expertise that the team has.
The model has five decision-making styles:
- Autocratic I (AI) – This is where the leader makes the decisions alone using the present information
- Autocratic II (AII) – The leader collects information from the team but makes the final decision alone
- Consultative I (CI) – The leader consults with the individual members and makes decisions
- Consultative II (CII) – The leader consults the team as a group and then decides
- Group II (GII) – The decision is made together by the leader and the team
This model is helpful for leaders who practice authoritative leadership yet acknowledge the importance of team involvement. This model is a practical solution for determining when the leadership style should be decisive and when it should be inclusive.
OODA Loop
This decision-making model relies on the strategy developed by John Boyd who is a military strategist. The OODA loop stands for Observe, Orient, Decide, Act and is an iterative, fast-paced framework that helps leaders make quick decisions.
The four steps are:
- Observe: This is where the leader gathers information about the situation
- Orient: This includes analysis of the information to understand the context
- Decide: This step includes choosing the best course of action depending on the analysis
- Act: Implementing the decision and taking action
This model is great for high-pressure situations where quick decisions are necessary. This decision making framework is for leaders who need to have quick decision making skills. It can also teach tips to improve leadership skills about responsiveness and agility.
SWOT Analysis
One of the most famous decision making tools, the SWOT analysis, helps make strategic decisions. When leaders must evaluate their organization’s external and internal environment, they can use this framework. The key areas are:
- Strengths: What are the strengths of the organization? How does it do well?
- Weaknesses: Where does the organization need improvement?
- Opportunities: What are the external opportunities for the organization to capitalize on?
- Threats: What external factors pose a risk?
SWOT analysis best fits strategic planning and specific decisions as it provides a clear overview of the factors influencing a decision. This makes it easier to consider the options and choose the best action plan.
Leaders trying to master the art of first-time management will find it instrumental.
Decision Matrix
The decision matrix, Eisenhower Matrix, or the Weighted Scoring Model, is a quantitative tool. It helps leaders prioritize and evaluate options based on specific criteria. It is also helpful in making decisions when multiple variables are present.
The process includes:
- Listing options where the potential actions or solutions are identified
- Determining criteria by establishing factors important for decision-making
- Assigning weights where a weight is assigned to each criterion based on its importance
- Scoring each option where each option against the criteria is rated
- Calculating scores by multiplying the scores by weights and adding them to get a total score for each option
- Decision making. The option with the highest score becomes the best option by default
It is a valuable tool when leaders must make tough decisions involving multiple factors. It is one of the most logical ways of prioritizing options such that the decisions align with the organizational resources and goals.
The Six Thinking Hats
Edward de Bono developed this framework, and it takes a unique decision-making approach. Moreover, it encourages leaders to look at decisions from different perspectives.
This is done by using six hats that act as modes of thinking. Each hat represents a different aspect of decision making.
- White Hat: Requires the leader to focus on the facts and data
- Red Hat: The leader should consider gut feelings and emotions
- Black Hat: The leader identifies the potential risks and problems
- Yellow Hat: this perspective offers a look at the positive outcomes and benefits
- Green Hat: This hat encourages creativity and alternative solutions
- Blue Hat: With this perspective, the leader manages the process and keeps the discussion on track
This decision making framework is excellent for group decision-making situations and forms a part of easy team building activities for work.
Conclusion
This was all on the decision making framework and how leaders can employ different decision-making models. Each model illustrated in the above section helps get a clear understanding of the situation, which guides the decision making process.
Which framework or model do you think is the most effective?
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