Five Ways Executives Can Make Better Decisions
by Margaret Benefiel
Published on this site: November 7th, 2005 - See
more articles from this month
Did you know that half of all managerial decisions fail? How
much time, money, reputation, and morale is your business
losing because of failed managerial decisions? Do you want
to improve those odds and reap higher profits? Here are five
things you can do right now to make better decisions--and
the resultant more money-for your company:
- Go in without preconceived notions. Don't make decisions
in your head before you've carefully weighed the options.
Going into a decision without preconceived notions can also
encourage practices of nurture and rest that provide perspective
and promote good decisions. Bob Carlson, board member and
retired co-CEO of Reell Precision Manufacturing (St. Paul,
Minnesota), takes walks in the woods and listens to music
to help him get perspective, weigh decisions, and let go
of preconceived notions. During an economic downturn in
early 2001, Bob and his leadership team let go of the preconceived
notion that layoffs were necessary. The result? They got
through the business slowdown by asking employees to take
graduated pay cuts, and they didn't have to lay anyone off.
"When we called everyone together and explained the
graduated pay cuts we were offering," relates Bob,
"there were tears in people's eyes. They thanked us
from the bottom of their hears." Morale remained high
despite the tough times and everyone was restored to full
pay several months later.
- Don't take the easy way out: Commit to discovering underlying
issues. Such a commitment helps a leader avoid the trap
of settling for easy answers that turn out to be unworkable.
When Julius Walls, CEO of Greyston Bakery in Yonkers, New
York, faced the challenge of Ben and Jerry's (his primary
customer) raising the standards for his product, he asked
how he could train his "unemployable" workers
(workers hired straight out of prison or drug treatment
programs, for example) to meet the higher standards. Through
listening to his workers and understanding their issues,
he discovered how to walk with them through their development
into productive employees.
- Start with thorough information-gathering. Leaders who
consistently ask what information is needed, whether it
has all been gathered, and whether there are further relevant
questions to pursue, make better decisions. Joe Clubb, director
of social work at HealthEast healthcare system in Minnesota,
tracked down all the relevant information when he headed
up the strategic planning effort for St. Joseph's Hospital
(one of HealthEast's member hospitals). From talking with
the nuns whose foremothers had founded the hospital in 1853,
to talking with clinicians who told him of the need for
state-of-the-art equipment, to talking with accountants
who told him of the financial pressures the hospital faced,
Joe left no stone unturned in gathering information.
- Maintain a reflective (or prayerful or meditative) approach
to decision-making. Reflection and prayer can provide a
way to step back and see the whole picture, letting go of
ego needs and asking what is best for the organization.
When Genny Nelson, founder of Sisters of the Road Cafe (a
cafe for the homeless in Portland, Oregon), found herself
with less than $100 in the cafe's bank account, she went
to the nearby downtown chapel and prayed, "God, I'm
laying it at your feet. I'm a really stubborn woman. If
you don't want me to do Sisters anymore, I'll get that,
but you gotta give me a big sign, like put it on a billboard:
Genny, stop doing Sisters." By stepping back and praying,
Nelson found herself with new perspective, got help with
fundraising, and was able to get the cafe back on its feet.
- Make tentative decisions and then watch their outcomes
for confirmation. The decision is not over until the fruits
of the decision are weighed against the organization's vision
and mission. When a Southwest Airlines manager made a verbal
commitment to contribute substantially to a new airport
in Austin, Texas, an hour's drive out of the city, senior
executives soon saw the folly of the commitment (since a
commuter airline relies on airports close to the city).
It would have been easy for senior executives to to back
out of the deal, since nothing had been signed. But they
made the tentative decision to stick with the commitment,
weighing the decision against their company's commitment
to honesty and integrity. Even though the decision was costly
in the short run, in the long run the company's reputation
for keeping its word was upheld.
There are dozens more ways to achieve higher profits for
your business by bringing spirituality into the workplace,
but just start by following these five decision-making strategies
and see how quickly your management decisions make more sense!
Margaret Benefiel, Ph.D., is CEO of ExecutiveSoul.com,
professor at Andover Newton Theological School in Boston,
and author of the book, "Soul at Work: Spiritual Leadership
in Organizations." She speaks widely, leads workshops
and retreats, and offers spiritual direction to executives
and organizations. Over 300 executives, managers, and other
leaders have participated in her seminars and courses. Find out more at http://www.ExecutiveSoul.com
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