Outsourced Training Solutions© 1

Module ? – Decision Making

This module gives you an overview of decision making, including group decision making processes and
tools. It looks at the stages of decision making and provides some tips and tools to ensure that you are
able to critically analyse data/ information in order to make informed decisions in your organisation.

Learning Outcomes
By the end of this module you will be able to:

 Understand the decision making process.

 Identify decision making pitfalls.

 Define your decision making process.

 Implement group decision making processes.

Outsourced Training Solutions© 2

An Introduction to Decision Making
Decisions are an important facet of our everyday lives. We are constantly make decisions in our home
life and work life some of these affect immediate situation others can will impact heavily our future.
That is why having the skills to make good, solid decisions is important.

Most of us make many decisions automatically; we don’t take the time to think about the process we
use to reach these decisions. Deciding to get out of bed in the morning, deciding what clothes to wear
to work or deciding what to eat for supper may seem relatively simple for some people but for others
this may be very challenging. Like with all skills, in order to perform at a maximum level, decision
making skills need to be practised in order to perfect the skill. The more these skills are practised, the
easier it gets to master decision making.

The objective of making a decision is to choose your best alternative – based on the facts
provided – that will lead to a productive end result.

Outsourced Training Solutions© 3

Do we fool ourselves in decision making?
Article: How We Sometimes Fool Ourselves When Making Decisions (By Kare Anderson)

Think back on a decision you made in the past that cost you dearly in sales or a valued relationship.
Consider some smaller decisions where you realize in retrospect that, if you’d made another choice,
you’d have saved time or avoided aggravation.

What if you found out that your mind played tricks on you? You could have thought things out better,
and made a wiser choice? Perhaps you were relying on your "gut instincts" yet, in fact, were fooled by
unconscious decision-making traps we fall into when trying to figure out what we should do.

According to one of my all-time heroes, negotiations guru, Howard Raiffa, we are destined to repeat
the same faulty decision making process and face more grief from the poor results if we don’t gain
insights into some of these traps.

According to Raiffa, the fault often lies not in the decision-making process but rather in the mind of the
decision maker. The way the human brain works can sabotage our decisions. Here are some insights
into the most well-documented traps we set for ourselves in making decisions.

The Routines of Decision Making

We use unconscious routines, called heuristics, to cope with the complexity inherent in decision
making. They serve us well in most situations. For example, in judging distances, we equate clarity
with proximity. The clearer an object appears, the closer we judge it to be. The fuzzier, the farther we
think it is. Like most heuristics, it is not fool proof. On days that are hazier than that to which we are
accustomed, our eyes will tend to trick our minds into thinking that things are more distant than they
actually are. For airplane pilots this distortion could be catastrophic if they weren’t trained to use other
truly objective measures and instruments. While this decision making flaw is based on sensory
perception others are based on biases, still others on irrational anomalies in our thinking. They are
potentially dangerous because they are invisible to us. They are hardwired into our thinking so we fail
to even recognize that we are using them.

Anchoring
How would you answer these two questions?
1. Is the population of Turkey greater than 35 million?
2. What’s your best estimate of Turkey’s population?

Outsourced Training Solutions© 4

Do we fool ourselves in decision making? continued
If you are like most people, the figure of 35 million (researchers chose arbitrarily) influenced your
answer to the second question. I’ve watched the behavioural scientists ask variations of these questions
to groups of people many times over the past decade. In half the cases, 35 million was used in the first
question, in the other half, 100 million. Without fail, the answers to the second question increase by
millions when the larger figure is used (as an anchor) in the first question.

When considering a decision, the mind gives disproportionate weight to the first information it
receives. Initial impressions, estimates or other data anchor subsequent thoughts and judgements. The
implications to influence another’s perceptions are mind-boggling and can take many guises. A
colleague can offer a comment or a statistic can appear in the morning paper which will influence your
subsequent decision making on that topic. Other guises can be as insidious as a stereotype about a
person’s skin colour, clothing or accent.

In business, one of the most frequent "anchors" is a past event or trend. A marketer, in attempting to
project sales of a product for the coming year, often begins by looking at the sales volumes for past
years. This approach tends to put too much weight on past history and not enough weight on other
factors.

Because anchors can establish the terms on which a decision will be made, they can be used as a
bargaining tactic by savvy negotiators.

Reduce the impact of the effects of anchoring in these ways:

1. Be open minded. Seek information and opinions from a variety of people to widen your frame
of reference, without dwelling disproportionately on what you heard first.

2. In seeking advice from others, offer information -- just the facts without your opinion -- so
that you don’t inadvertently anchor them with your thoughts. Then you can benefit from
hearing diverse views on the situation without their views being coloured or anchored by
yours.

3. Whoever most vividly characterizes the situation usually anchors the other’s perception of it.
That’s an immensely powerful ability. Others literally see and discuss the situation while
anchored from that most memorably stated perspective. The vivid communicator has literally
created the playing field on which the game will be played on. Be especially wary of anchors
in negotiations.

Outsourced Training Solutions© 5

Do we fool ourselves in decision making? continued
Think through your position before any negotiation begins in order to avoid being anchored
by someone else’s proposal or position.

Status-Quo Trap
We instinctively stay with what seems familiar. Thus we look for decisions that involve the least
change. For example, when radically new products are introduced, they are made to look like an
existing and familiar product. The first cars looked like horseless carriages. The first online newspapers
and magazines had formats much like their print counterparts.

To protect our egos from damage, we avoid acting to change the status quo, even in the face of early
warnings that demonstrate that change will be safer. We look for reasons to do nothing.

For example, in one experiment, a group of people were randomly given one of two gifts of
approximately the same value - half received a mug, the other half got a large, Swiss chocolate bar.
They were told that they could easily exchange the gift they received for the other gift. While you
might expect that about half would have wanted to make the exchange, only one in ten actually did.
The power of status quo kicked in within minutes of receiving an object. Other experiments have
shown that the more choices you are given, the more pull the status quo has. Why? Because more
choices involve more effort while selecting the status quo avoids that effort.

In business, the sins of commission (doing something) tend to be punished much more severely than
sins of omission (doing nothing). In all parts of life, people want to avoid rocking the boat.

What can you do? Think of your goals first, when preparing to make a decision, then review how they
are served by the status quo as compared by a change. Look at each possible change, one at a time, so
you don’t overwhelm yourself and then instinctively want to "stay safe" and unchanged.

Never think of the status quo as your only alternative. Ask yourself whether you would choose the
status quo, if, in fact, it weren’t the status quo.

Avoid the natural tendency of exaggerating the effort or cost or emotional reaction of others or for
yourself if you change from the status quo.

Outsourced Training Solutions© 6

Do we fool ourselves in decision making? continued
Remember that the desirability of the status quo may change over time. When considering a change,
look at possible future situations. If you have several alternatives that are superior to the status quo,
avoid the natural tendency to fall back upon the status quo because you are having a hard time
choosing between the other alternatives.

The Justify- Past-Actions Trap

The more actions you have already taken on behalf of a choice or direction, the more difficult you will
find it to change direction or make a different choice. Whenever you invest time, money, or other
resources, or whenever your personal reputation is at stake, you will find it more difficult to change
your decision or course of action.

Suppose you pour a great deal of time and effort into offering a product to a new niche market.
Because you have already used resources to be successful in that market, you will find it difficult to
withdraw, even when the market clearly is not interested in your product.

If you have a once-close childhood friend who has not been supportive of you for years, you’ll be
reluctant to acknowledge that change and will likely act as if you are still close.

Banks used to continue to lend to businesses that had fallen back on payments, thus throwing good
money after bad.

For all decisions with a history, make a conscious effort to set aside your "past actions" - investments
of emotion, money or other resources - as you consider whether to change direction. Seek out and listen
to people who were uninvolved with the earlier decisions. Examine why admitting an earlier mistake
distresses you. If the problem lies in your wounded ego, deal with it straight-away. As Warren Buffet
once said, "When you find yourself in a hole, the best thing you can do is stop digging."

Don’t cultivate a failure-fearing culture in the people around you at home or at work. In such an
atmosphere, others will perpetuate mistakes rather than admitting them to you and changing course.
When you set an example of admitting mistakes in your choices and self-correcting, others will believe
they can do likewise without penalties from you.

Outsourced Training Solutions© 7

Do we fool ourselves in decision making? continued
Although we hope to learn from every mistake, we can’t help but long for a faster learning curve so we
might continue in a wiser, smoother path through the process of making decisions. I hope your
awareness of these traps can help you avoid them in your future decision-making.

Kare Anderson is a behavioral futurist who speaks and writes about "Say It Better" methods of
thoughtful communication, conflict resolution, cross-promotion and outreach, and multisensory
techniques to create more memorable on-site experiences. An Emmy-winning former TV commentator,
Wall Street Journal reporter she’s a national columnist in 98 monthly magazines (from Gourmet
Retailer to Broadcast Engineering), nine-time author ( Getting What You Want, Pocket Cross-
Promotions, Make Yourself Memorable, Beauty Inside Out, Cutting Deals With Unlikely Allies,
Resolving Conflict Sooner . . .) and publisher of the "Say It Better" online newsletter now read by over
17,000 people in 32 countries, which is available free when you sign the guest book at her web site at
www.sayitbetter.com. Anderson is the co-founder of The Compelling Communications Group

The Compelling Communications Group

Website: http://www.sayitbetter.com

Suggested reading

1. Smart Choices: A Practical Guide to Making Better Decisions, by Howard Raiffa, John S.
Hammond and Ralph L. Keeney.

2. Decision Traps: Ten Barriers to Brilliant Decision Making and How to Overcome Them, by J.
Edward Russo and Paul J. H. Schoemaker.

3. Judgment in Managerial Decision Making, by Edward J. Russo and Max H. Bazerman.

Outsourced Training Solutions© 8

Decision making as a skill in the workplace
Decision-making is a key skill in the workplace, and is particularly important if you want to be an
effective leader.

Whether you're deciding which person to hire, which supplier to use, or which strategy to pursue, the
ability to make a good decision with available information is vital. It would be easy if there were one
formula you could use in any situation, but there isn't. Each decision presents its own challenges, and
we all have different ways of approaching problems.

Simple decisions usually need a simple decision-making process. But difficult decisions typically
involve issues like these:

 Uncertainty - Many facts may not be known.

 Complexity - You have to consider many interrelated factors.

 High-risk consequences - The impact of the decision may be significant.

 Alternatives - Each has its own set of uncertainties and consequences.

 Interpersonal issues - It can be difficult to predict how other people will react.

With these difficulties in mind, the best way to make a complex decision is to use an effective process.
Clear processes usually lead to consistent, high-quality results, and they can improve the quality of
almost everything we do.

As important, we need to consider: “how do I avoid making bad decisions – or leaving decisions to
chance?” You need a systematic approach to decision-making so that, no matter what type of decision
you have to make, you can take decisions with confidence.

No one can afford to make poor decisions.

An organised and systematic decision-making process usually leads to better decisions. Without a well-
defined process, you risk making decisions that are based on insufficient information and analysis.
Many variables affect the final impact of your decision. However, if you establish strong foundations
for decision making, generate good alternatives, evaluate these alternatives rigorously, and then check
your decision-making process, you will improve the quality of your decisions.

Outsourced Training Solutions© 9

Learning Activity 1 – How good are your decision making skills?
For each statement, tick the box in the column that best describes you. Please answer questions
as you actually are (rather than how you think you should be.

Sometimes

Very often
Not at all

Rarely

Often
STATEMENT

1 I evaluate the risks associated with each

alternative before making a decision.

2 After I make a decision, it's final –

because I know my process is strong.

3 I try to determine the real issue before

starting a decision-making process.

4 I rely on my own experience to find

potential solutions to a problem.

5 I tend to have a strong "gut instinct"

about problems, and I rely on it in
decision-making.

6 I am sometimes surprised by the actual

consequences of my decisions.

7 I use a well-defined process to structure

my decisions.

Outsourced Training Solutions© 10

 Sometimes

Very often
Not at all
STATEMENT

Rarely

Often
8 I think that involving many stakeholders
to generate solutions can make the
process more complicated than it needs to
be.

9 If I have doubts about my decision, I go

back and recheck my assumptions and
my process.

10 I take the time needed to choose the best

decision-making tool for each specific
decision.

11 I consider a variety of potential solutions

before I make my decision.

12 Before I communicate my decision, I

create an implementation plan.

13 In a group decision-making process, I

tend to support my friends' proposals and
try to find ways to make them work.

14 When communicating my decision, I

include my rationale and justification.

15 Some of the options I've chosen have

been much more difficult to implement
than I had expected.
Sometimes

Very often
Not at all

STATEMENT
Rarely

Often

Outsourced Training Solutions© 11

As you answered the questions, did you see some common themes? We based our quiz on six essential
skills required for effective decision-making:

1. Establishing a positive decision-making environment.

2. Generating potential solutions.

3. Evaluating the solutions.

4. Deciding.

5. Review and evaluate the decision.

6. Communicating and implementing.

If you're aware of these six basic elements and improve the way you structure them, this will help you
develop a better overall decision-making system.

To complete this quiz online for a more in-depth evaluation go to:

http://www.mindtools.com/pages/article/newTED_79.htm

Outsourced Training Solutions© 12

Managerial decision making
Article: Managerial decision making and the decision making process (By L. Hurley, 16
November 2008)

Making decisions is what managers do. A surgeon operates, a mechanic fixes cars and a manager
makes decisions. Ideally the decisions made by managers create an environment which allows both the
business and employees to succeed and grow.

Before any decision can be made a manager must have the authority to do so. Most companies have
clearly delegated and documented authorities for making financial and human resource decisions. Day-
to-day operational decisions, such as what time breaks will be taken, are usually assumed as part of the
role and inferred by responsibilities in the position description.

As managers we are personally and sometimes legally responsible for the effects of our decisions so it
is important to understand and stay within the boundaries of our authority. We also want to make good
decisions. Good decisions are those that allow the business to grow and employees to develop and
succeed.

Good decisions require an element of judgement. A decision made with too little information can have
an unexpected and unwelcome outcome. While delaying a decision for too long to obtain all possible
information can render the decision ineffective.

The more information we have the better prepared we are to make effective decisions and the less
likely it is that we will be surprised by an unforeseen outcome. We need to gather as much relevant
information as possible within the timeframe available.

Information can come in many forms. Data provides an excellent basis for understanding trends,
analysing and predicting volume, cost and profit but on its own data is not enough. Speaking with
subject matter experts and the people who will be impacted by the decision provides context in which
the objective data may be viewed.

Once a manager has all the relevant information they need to make the decision it is appropriate to test
the effect of the decision against a number of elements.

LEGAL

Does it conform to local and federal legislative requirements? Does it comply with company policy and
fit within the terms of the customer contract?

Outsourced Training Solutions© 13

Managerial decision making, continued
ETHICAL

While unethical decisions may be legal a good decision remains within the ethical code of the
company.

OVERT AND EQUITABLE

Is the purpose and reason for making the decision clear to everyone? Have the needs of all parties been
balanced as far as is practical?

SENSIBLE

Perhaps the most important element of a good decision is whether it makes sense. The decision will be
more readily accepted if everyone can understand the need for it.

PERSONAL STANDARDS

When the decision passes the legal, ethical, overt, equitable and sensible tests there is one final test to
be applied. Would you be happy for the decision to be reported in the media or will you be hiding
behind closed doors and drawn shades if the outcome hits the news?

Whether the decision is about a staff roster or a major investment in technology it should be based on
relevant information, involve input from the right people and have all the elements of a good decision.
If it does, go ahead and make the decision, record it and follow through with implementation.

Outsourced Training Solutions© 14

Learning Activity 2 – Decision making practices
1. Read though ”Popular methods for decision making” below.

2. Share some of the dysfunctional decision making practices that you have experienced?

3. Suggest ways to defuse these styles.

Outsourced Training Solutions© 15

Popular methods for decision making
Companies, and managers, use many different strategies to make decisions, many of which are not
effective and lead to costly consequences for the company. The following is a list of strategies that
many of us have seen in practice. They all lead to decisions, but they all run the risk of not making
good use of the available people and information. Have you ever experienced these?

1. Decision by Running Out of Time: This is the most common form of decision-making.
There may be some effort to develop criteria and alternatives, but often time runs out before
there is any effort to ensure that a robust decision is made.

2. Decision by chaos: The president of the company says, “I want our new product at the Rand
Easter show in two weeks”. The show is in two weeks. There is no rational way to prepare for
the show and make robust decisions. The decisions made in the chaos may need revisiting
after the show and work will need to be redone. Some people prefer to work in a chaotic
environment, and when in positions of power, they will manufacture chaos as the working
environment.

3. Decision by Fiat (or Decision by Authority): This is a very common style in autocratic
organisations where a manager or someone else in authority decrees that a certain alternative
is his/her favourite. It is often seen when the boss’s idea is chosen in order to preserve the
relationship with him/her. This is more justification than decision-making.

4. Decision by Coercion: A champion for one alternative pressures his/her colleagues into
submission. Often the loudest voice wins, the others having given up. One colleague referred
to this style as “hijacking the process”.

5. Decision by Competition: Here concern for who wins is most important, as instanced in most
sports. This is often a win-lose situation and the relationship among individual team members
is not important.

6. Decision by Voting: Democracy works, but does not often make the best possible choice.
This decision making process is a weak form of compromise. Think how most products and
businesses would operate if they were designed the same way we elect a president.

Outsourced Training Solutions© 16

Popular methods for decision making , continued
7. Decision by Inertia: This style is based on “We did it that way before” which may result in a
robust decision, if the previous one was. But, not much progress or innovation is made using
this style. Sometimes the tough decision is knowing when to innovate, and when to keep the
cruise control on.

Outsourced Training Solutions© 17

The decision making process
In the business environment, decision making is an essential leadership skill. If you can learn how to
make timely, well-considered decisions, then you can lead your team to well-deserved success. If,
however, you make poor decisions, your time as a leader will be brutally short.

There is one quality that distinguishes a good manager from a poor one, it is decisiveness. A person in
managerial position who is poor in decision making is fit to be called only an administrator and not a
manager. For a professional manager, the decision making process normally involves the following
stages:

1) Establishing a positive decision-making environment while defining the problem /issues /

situations / challenges and collecting relevant facts, figures and statistics to facilitate and
support the decision making process. Steps include:

a. Establish the objective - Define what you want to achieve.

b. Agree on the process - Know how the final decision will be made.

c. Involve the right people - Address key interpersonal considerations at the very
beginning.

d. Allow opinions to be heard - Encourage participants to contribute to the discussions,

debates, and analysis without any fear of rejection from the group.

e. Make sure you're asking the right question - Ask yourself whether this is really the
true issue. The 5 Whys technique is a classic tool that helps you identify the real
underlying problem that you face.

f. Use creativity tools from the start - The basis of creativity is thinking from a different
perspective.

2) Generating potential solutions and seek opinions and alternative viewpoints from
"people who know" and "people who matter".

a. Generating Ideas: tools/ techniques that can be used include: brainstorming, reverse
brainstorming, Charette Procedure, or the Crawford Slip Writing Technique.

b. Considering Different Perspectives: tools/ techniques that can be used include:

Reframing Matrix, Concept Fan, or Appreciative Inquiry.

c. Organising Ideas: This is especially helpful when you have a large number of ideas.
Sometimes separate ideas can be combined into one comprehensive alternative.

3) Evaluating the solutions: eg: by assessing the pro’s and con’s, or prioritising elements

Outsourced Training Solutions© 18

 and assigning them a weight against consequence.

a. Risk: In decision making, there's usually some degree of uncertainty, which

inevitably leads to risk. By evaluating the risk involved with various options, you can
determine whether the risk is manageable.

b. Implications: Another way to look at your options is by considering the potential

consequences of each.

c. Validation: Determine if resources are adequate, if the solution matches your

objectives, and if the decision is likely to work in the long term.

4) Deciding on the best choice or a couple of best courses of action.

After you have evaluated the alternatives, the next step is to choose between them. The
choice may be obvious. However, if it isn't, these tools will help:

a. Grid Analysis, also known as a decision matrix, is a key tool for this type of
evaluation. It's invaluable because it helps you bring disparate factors into your
decision-making process in a reliable and rigorous way.

b. Use Paired Comparison Analysis to determine the relative importance of various

factors. This helps you compare unlike factors, and decide which ones should carry
the most weight in your decision.

c. Decision Trees are also useful in choosing between options. These help you lay out
the different options open to you, and bring the likelihood of project success or
failure into the decision making process.

5) Review and evaluate the decision and the results from implementing a course of action
based on this decision(s).

a. Intuitive step, which involves quietly and methodically testing the assumptions and
the decisions you've made against your own experience, and thoroughly reviewing
and exploring any doubts you might have.

b. Blindspot Analysis can be used to review whether common decision-making

problems like over-confidence, escalating commitment, or groupthink may have
undermined the decision-making process.

c. Ladder of Inference can be used to check through the logical structure of the decision
with a view to ensuring that a well-founded and consistent decision emerges at the
end of the decision-making process.

Outsourced Training Solutions© 19

6) Accept responsibility.

People who don't take responsibility for their work or actions can have a negative impact on
their team or organisation.

Remember that even some small choices can have big consequences. Don’t underestimate
the possibility that major consequences could result from seemingly insignificant choices
you make along the way. By taking responsibility, you also assume control for the response
to what happened.

Always remember that it is easy to take responsibility when there are successes, but it is a
sign of maturity as a manager if you are able to do the same when there are difficulties.

Outsourced Training Solutions© 20

Decision making tools and techniques
Like so many things, smart decision-making can benefit from the addition of structure, focus, and a bit
of metaphor. While imperfect in their own ways, the kinds of tools that support this mental corralling
can help tremendously in quieting the chaos, surveying the available options, and then collecting and
evaluating the information you need to choose the best course of action.

Examples of the tools and techniques that can be used in the decision making process include:

Brainstorming Have a recorder list all the possible ideas from the group as quickly as
possible without any evaluation of ideas. Gather as many ideas as you
can as fast as you can. This list of ideas is then shortened and a final
solution can be developed from the best items.

Brainwriting Each person records an idea or solution to the problem on a piece of

paper and adds it to a pile. Everyone then takes a different paper from
the pile and adds an idea related to the one already on that page. Write
down the first thing that comes to mind. These ideas can then be
compiled and discussed to develop a final solution. (This is often
successful in a quieter group, when it is difficult to get everyone
talking.)

Nominal Group Each member shares their ideas. A recorder lists all the different ideas.
Technique Everyone then ranks their preferences individually from the whole list
from 1-(up to) 10. These scores are added together and a group score is
given. This gives priorities on a group basis. (If number 1 is used to rate
an individual best choice, then the list item with the smallest group
score is the most desired.)

Force-field Analysis List forces "pushing for changing the situation" and "forces pushing
against changing the situation". Outline the strategies to minimize the
strength of the forces and develop an action plan to accomplish the
solution.

Criteria Matrix Develop a set of standards that each alternative is judged on. Some
examples are: costs, risks involved, timeliness, convenience or
satisfaction. The matrix looks like a table with the alternatives down the
left side and the criteria across the top. Each alternative is ranked by the
criteria (1-5, yes or no, etc) and the scores are added up at the bottom.

Dotmocracy Provide each person with the same number of dot stickers or pennies or
tokens. Vote individually on the list of brainstormed alternatives. If

Outsourced Training Solutions© 21

 someone feels strongly about one item they are welcome to put all their
dots on that item. The alternative with the greatest number of dots is the
decision preference.

Bubble-up/Bubble- Used for ranking statements or ideas or putting ideas in a orderly

down sequence. Read the first two statements, decide between the two which
statement is least preferred and should be eliminated. Now compare the
statement left to the next one on the list and continue to do this until you
have reached the last item on your list and the group is satisfied. (for
example: when purchasing a house; it is much easier to compare the
house you're viewing with the last house you viewed. After evaluating
how this one rates, you eliminate one of the two. The preference of the
two is the only house used in future comparisons.)

Circle Chart Divide the paper into four quadrants and label each quadrant one of four
titles: What is wrong?(in theory), What might be done? (in theory),
What is wrong?(in the real world), and What might be done? (in the real
world). This will initiate a brainstorming session to help develop a
solution.

Appreciative Inquiry When analysing a situation/ problem/ issue/ challenge shift to a positive
perspective, look at the things that are working, and build on them. In
some situations this can be very powerful because, by focusing on
positives, you can build the unique strengths which bring real success.

This list shows only some of the tools and techniques that can be used to facilitate group decision
making. There are many more, and more complex, options available. It is important to choose the
technique(s) or tool (s) that will work for you, the group dynamics and will effectively help in decision
making around specific problems/ issues.

An organized and systematic decision-making process usually leads to better decisions. Without a well-
defined process, you risk making decisions that are based on insufficient information and analysis.
Many variables affect the final impact of your decision. However, if you establish strong foundations
for decision making, generate good alternatives, evaluate these alternatives rigorously, and then check
your decision-making process, you will improve the quality of your decisions.

Outsourced Training Solutions© 22

Learning Activity 3 – Car

1.

2.

Outsourced Training Solutions© 23

Learning Activity 4 – Case Study: Southwest Airlines
Watch the video clip and read through the case study, then reflect on the following questions related to
the decision making process

1. Decision making

Discuss what is meant by the term 'decision making'. Identify types of business decision and
classify the decision discussed within this case study.

2. Decision models

A variety of models and processes have been offered to suggest ideally how people should or
describe how they actually do make decisions. Describe and discuss the decision making
models used in this case study.

3. Decision making process within this case study

Describe the decision making process used in this case study.

4. Your decision

List/ summarise the factors influencing the decision at Southwest Airlines: what would your
decision have been?

Outsourced Training Solutions© 24

Case study: Corporate decision making
Case problem: Decisions about whether, when and how to downsize (restructure).

Southwest Airlines Co. ("Southwest") is a major domestic airline that provides primarily short haul,
high‐frequency, point‐to‐point, low‐fare service. Founded in 1971 and headquartered in the US,
Southwest is a large low‐cost airline. Airlines rely on key inputs such as aircraft, fuel and labour in order
to operate. Like any airline it is sensitive to jet fuel prices and other operating costs. FORTUNE has
listed Southwest Airlines among America’s Top Ten most admired corporations and previously ranked
Southwest Airlines in the top five of the “Best Companies to Work For” in America. Today Southwest
operates over 500 Boeing 737 aircraft in 66 cities. Southwest has among the lowest cost structures in the
domestic airline industry and consistently offers the lowest and simplest fares. Southwest also has one of
the best overall Customer Service records. The company is committed to provide its employees with a
stable work environment with equal opportunity for learning and personal growth; there are more than
35,000 employees throughout the Southwest system. The airline is unionized (heavily unionized when
compared with other US airlines). In 1995, Southwest became one of the first airlines to have a web site.
In 2006, 70 percent of flight bookings and 73 percent of revenue was generated from bookings on
southwest.com.

After providing customers with the opportunity to book tickets online, Southwest Airlines found it
then had too many call centre agents.

Southwest Airlines provides us with a textbook example of effective organizational downsizing. Of

course, CEO James Parker and his team had a few things going for them. The company had already
established a culture of trust between employees and management. In addition, the downsizing was
prompted by a growth in online bookings, meaning it was a technological event outside management's
control that spurred the need for layoffs.

Still, Southwest managed the change with notable effectiveness. First, it focused on both the survivors
and the victims and was concerned about retaining the motivation and commitment of the people who
remained. Second, there was a shared sense of urgency. Parker didn't act until all employees—and not
just management—could see that there was a real need for the layoffs. And third, the airline handled the
cuts in a way that was both economically and procedurally fair. It offered severance pay and gave
employees the choice of moving to a different call center or taking a severance package and leaving the
company.

It's important to recognize that what Southwest went through was necessary, in terms of both the
downsizing itself and the way it handled the process. Because so much trust had been built among
employees at all levels in the organization, management had to proceed in such a way to keep that trust
intact.

Learning from Southwest's Approach

Outsourced Training Solutions© 25

Southwest's approach was quite a bit different from the way downsizings are usually handled, which
typically involves informing employees they are going to be downsized, escorting them to the door, and
shipping their personal belongings to their home address. There's often no notice, no time to process the
information, and no choice given to the employees. That approach, which is driven by management and
forced upon employees, doesn't involve any form of employee participation.

And unlike the case with Southwest, the reason many organizations have to downsize is strategic
missteps or poor executive decision-making. That naturally causes a divide between employees and top
management and can create an adversarial relationship.

However, it is important to realise that all organizations can learn from the Southwest case. First, even if
the downsizing is spurred by something internal, management can build trust with the survivors.
Companies can find ways of creating urgency and getting employees on board with the need for change
before it becomes absolutely essential. Managers can do that by sharing information about performance
and how it must improve to maintain competitiveness. They can make sure severance pay is at least
industry-standard and share information about job leads.

Of course, things such as allowing employees to say goodbye to co-workers rather than escorting them
out the door can go a long way. Give people advance notice, treat them with dignity and respect, and
provide them with a reason for the downsizing.

Rational economic arguments for change are considered alongside value based arguments to continue
the status quo.

Case Study References

Albright, S., Winston, W. and Zappe, C. (2006) 'Data Analysis & Decision Making ‐ with Microsoft
Excel', Ed. 3. South Western.

Cole, G A. and Kelly, P P. (2011) 'Management Theory and Practice', Ed. 7. Cengage EMEA.

Kelly, P P. (2009) 'International Business and Management', Cengage Learning EMEA.

Bloomberg Business week,

http://www.businessweek.com/mediacenter/video/managing/67d2716e3c1364279115ee675b54bdc8cd1
4e92e.html

Outsourced Training Solutions© 26

Key Learning Points

Outsourced Training Solutions© 27

Reading resources – The Vroom-Yetton-Jago Decision Model
http://www.mindtools.com/pages/article/newTED_91.htm

Deciding how to decide:

How you go about making a decision can involve as many choices as the decision itself. Sometimes you
have to take charge and decide what to do on your own. Other times its better to make a decision using
group consensus. How do you decide which approach to use?

Making good decisions is one of the main leadership tasks. Part of doing this is determining the most
efficient and effective means of reaching the decision.

You don't want to make autocratic decisions when team acceptance is crucial for a successful outcome.
Nor do you want be involving your team in every decision you make, because that is an ineffective use
of time and resources. What this means is you have to adapt your leadership style to the situation and
decision you are facing. Autocratic styles work some of the time, highly participative styles work at
other times, and various combinations of the two work best in the times in between.

The Vroom-Yetton-Jago Decision Model provides a useful framework for identifying the best
leadership style to adopt for the situation you're in.

Note:
This model was originally described by Victor Vroom and Philip Yetton in their 1973 book titled
Leadership and Decision Making. Later in 1988, Vroom and Arthur Jago, replaced the decision tree
system of the original model with an expert system based on mathematics. Hence you will see the
model called Vroom-Yetton, Vroom-Jago, and Vroom-Yetton-Jago. The model here is based on the
Vroom-Jago version of the model.

Understanding the Model:

When you sit down to make a decision, your style, and the degree of participation you need to get from
your team, are affected by three main factors:

 Decision Quality – how important is it to come up with the "right" solution? The higher
the quality of the decision needed, the more you should involve other people in the
decision.

 Subordinate Commitment - how important is it that your team and others buy into the
decision? When teammates need to embrace the decision you should increase the
participation levels.

 Time Constraints – How much time do you have to make the decision? The more time
you have, the more you have the luxury of including others, and of using the decision as an

Outsourced Training Solutions© 28

 opportunity for teambuilding.

Specific Leadership Styles

The way that these factors impact on you helps you determine the best leadership and decision-making
style to use. Vroom-Jago distinguishes three styles of leadership, and five different processes of
decision-making that you can consider using:

Style: Autocratic – you make the decision and inform others of it.

There are two separate processes for decision making in an autocratic style:

Process: Autocratic 1(A1) – you use the information you already have and make the
decision

Autocratic 2 (A2) – you ask team members for specific information and once
you have it, you make the decision. Here you don't necessarily tell them what
the information is needed for.

Style: Consultative – you gather information from the team and other and then make
the decision.

Process: Consultative 1 (C1) – you inform team members of what you doing and may
individually ask opinions, however, the group is not brought together for
discussion. You make the decision.

Consultative 2 (C2) – you are responsible for making the decision, however,
you get together as a group to discuss the situation, hear other perspectives, and
solicit suggestions.

Style: Collaborative – you and your team work together to reach a consensus.

Process: Group (G2) – The team makes a decision together. Your role is mostly
facilitative and you help the team come to a final decision that everyone agrees
on.

Tip:

Outsourced Training Solutions© 29

This is a useful model, but it's quite complex and long-winded. Use it in new situations, or in ones
which have unusual characteristics: Using it, you'll quickly get a feel for the right approach to use in
more usual circumstances.

To determine which of these styles and processes is most appropriate, there is a series of yes & no
questions that you ask yourself about the situation, and building a decision tree based on the responses.
There are seven questions in total. These are:

1. Is the technical quality of the decision very important? Meaning, are the consequences of
failure significant?

2. Does a successful outcome depend on your team members' commitment to the decision?
Must there be buy-in for the solution to work?

3. Do you have sufficient information to be able to make the decision on your own?

4. Is the problem well-structured so that you can easily understand what needs to be addressed
and what defines a good solution?

5. Are you reasonably sure that your team will accept your decision even if you make it
yourself?

6. Are the goals of the team consistent with the goals the organization has set to define a
successful solution?

7. Will there likely be conflict among the team as to which solution is best?

Use Figure 1 below to follow your answers through on the decision tree and identify the best decision
process for your circumstances. Not that in some scenarios, you don't need to answer all of the
questions.

Outsourced Training Solutions© 30

In general, a consultative or collaborative style is most appropriate when:

 You need information from others to solve a problem.

 The problem definition isn't clear.

 Team members' buy-in to the decision is important.

 You have enough time to manage a group decision.

An autocratic style is most efficient when:

 You have more expertise on the subject than others.

 You are confident about acting alone.

Outsourced Training Solutions© 31

  The team will accept your decision.

 There is little time available.

Key points:

The underlying assumption of the Vroom-Yetton-Jago Decision Models is that no one leadership style
or decision making process fits all situations.

By analysing the situation and evaluating the problem based on time, team buy-in, and decision quality,
a conclusion about which style best fits the situation can be made. The model defines a very logical
approach to which style to adopt and is useful for managers and leaders who are trying to balance the
benefits of participative management with the need to make decisions effectively.

Outsourced Training Solutions© 32

Reading resources – Stakeholder Analysis
Winning support for your projects, by Rachel Thompson,
http://www.mindtools.com/pages/article/newPPM_07.htm

"Stakeholder management is critical to the success of every project in every organization I have ever
worked with. By engaging the right people in the right way in your project, you can make a big
difference to its success... and to your career."

As you become more successful in your career, the actions you take and the projects you run will affect
more and more people. The more people you affect, the more likely it is that your actions will impact
people who have power and influence over your projects. These people could be strong supporters of
your work – or they could block it.

Stakeholder Management is an important discipline that successful people use to win support from
others. It helps them ensure that their projects succeed where others fail.

Stakeholder Analysis is the technique used to identify the key people who have to be won over. You
then use Stakeholder Planning to build the support that helps you succeed.

The benefits of using a stakeholder-based approach are that:

 You can use the opinions of the most powerful stakeholders to shape your projects at an
early stage. Not only does this make it more likely that they will support you, their input
can also improve the quality of your project

 Gaining support from powerful stakeholders can help you to win more resources – this
makes it more likely that your projects will be successful

 By communicating with stakeholders early and frequently, you can ensure that they fully
understand what you are doing and understand the benefits of your project – this means
they can support you actively when necessary

 You can anticipate what people's reaction to your project may be, and build into your plan
the actions that will win people's support.

How to Use the Tool:

The first step in Stakeholder Analysis is to identify who your stakeholders are. The next step is to work
out their power, influence and interest, so you know who you should focus on. The final step is to
develop a good understanding of the most important stakeholders so that you know how they are likely
to respond, and so that you can work out how to win their support – you can record this analysis on a
stakeholder map.

After you have used this tool and created a stakeholder map, you can use the stakeholder planning tool
to plan how you will communicate with each stakeholder.

Outsourced Training Solutions© 33

The steps of Stakeholder Analysis are explained below:

Step 1. Identify Your Stakeholders

The first step in your stakeholder analysis is to brainstorm who your stakeholders are. As part of this,
think of all the people who are affected by your work, who have influence or power over it, or have an
interest in its successful or unsuccessful conclusion.

The table below shows some of the people who might be stakeholders in your job or in your projects:

Your boss Shareholders Government

Senior executives Alliance partners Trades associations

Your co-workers Suppliers The press

Your team Lenders Interest groups

Customers Analysts The public

Prospective customers Future recruits The community

Your family

Remember that although stakeholders may be both organizations and people, ultimately you must
communicate with people. Make sure that you identify the correct individual stakeholders within a
stakeholder organization.

Step 2. Prioritize Your Stakeholders

You may now have a long list of people and organizations that are affected by your work. Some of these
may have the power either to block or advance. Some may be interested in what you are doing, others
may not care.

Map out your stakeholders on a Power/Interest Grid on our free template as shown in figure 1, and
classify them by their power over your work and by their interest in your work.

Outsourced Training Solutions© 34

For example, your boss is likely to have high power and influence over your projects and high interest.
Your family may have high interest, but are unlikely to have power over it.

Someone's position on the grid shows you the actions you have to take with them:

 High power, interested people: these are the people you must fully engage and make the
greatest efforts to satisfy.

 High power, less interested people: put enough work in with these people to keep them
satisfied, but not so much that they become bored with your message.

 Low power, interested people: keep these people adequately informed, and talk to them to
ensure that no major issues are arising. These people can often be very helpful with the
detail of your project.

 Low power, less interested people: again, monitor these people, but do not bore them with
excessive communication.

Step 3. Understand Your Key Stakeholders

You now need to know more about your key stakeholders. You need to know how they are likely to feel
about and react to your project. You also need to know how best to engage them in your project and
how best to communicate with them.

Key questions that can help you understand your stakeholders are:

 What financial or emotional interest do they have in the outcome of your work? Is it
positive or negative?

 What motivates them most of all?

Outsourced Training Solutions© 35

  What information do they want from you?

 How do they want to receive information from you? What is the best way of
communicating your message to them?

 What is their current opinion of your work? Is it based on good information?

 Who influences their opinions generally, and who influences their opinion of you? Do
some of these influencers therefore become important stakeholders in their own right?

 If they are not likely to be positive, what will win them around to support your project?

 If you don't think you will be able to win them around, how will you manage their
opposition?

 Who else might be influenced by their opinions? Do these people become stakeholders in
their own right?

A very good way of answering these questions is to talk to your stakeholders directly – people are often
quite open about their views, and asking people's opinions is often the first step in building a successful
relationship with them.

You can summarize the understanding you have gained on the stakeholder map, so that you can easily
see which stakeholders are expected to be blockers or critics, and which stakeholders are likely to be
advocates and supporters or your project. A good way of doing this is by color coding: showing
advocates and supporters in green, blockers and critics in red, and others who are neutral in orange.

Figure 2 shows an example of this – in this example, you can see that a lot of effort needs to be put into
persuading Piers and Michael of the benefits of the project – Janet and Amanda also need to managed
well as powerful supporters.

Outsourced Training Solutions© 36

Example:

You can create your own example of stakeholder analysis at work – whether for your current role, a job
you want to do or a new project.

Conduct a full stakeholder analysis. Ask yourself whether you are communicating as effectively as you
should be with your stakeholders. What actions can you take to get more from your supporters or win
over your critics?

Key Points:

As the work you do and the projects you run become more important, you will affect more and more
people. Some of these people have the power to undermine your projects and your position. Others may
be strong supporters of your work.

Stakeholder Management is the process by which you identify your key stakeholders and win their
support. Stakeholder Analysis is the first stage of this, where you identify and start to understand your
most important stakeholders.

The first stage of this is brainstorm who your stakeholders are. The next step is to prioritize them by
power and interest, and to plot this on a Power/Interest grid. The final stage is to get an understanding of
what motivates your stakeholders and how you need to win them around.

Outsourced Training Solutions© 37

Reading resources – Avoiding Groupthink
Avoiding fatal flaws in group decision making,
http://www.mindtools.com/pages/article/newLDR_82.htm

Have you ever thought about speaking up in a meeting and then decided against it because you did not
want to appear unsupportive of the group's efforts? Or led a team in which the team members were
reluctant to express their own opinions? If so, you have probably been a victim of "Groupthink".

Groupthink is a phenomenon that occurs when the desire for group consensus overrides people's
common sense desire to present alternatives, critique a position, or express an unpopular opinion. Here,
the desire for group cohesion effectively drives out good decision-making and problem solving.

Two well-known examples of Groupthink in action are the Challenger Space Shuttle disaster and the
Bay of Pigs invasion. Engineers of the space shuttle knew about some faulty parts months before
takeoff, but they did not want negative press so they pushed ahead with the launch anyway. With the
Bay of Pigs invasion, President Kennedy made a decision and the people around him supported it
despite their own concerns.

The term "Groupthink" was coined by Irving Janis in 1972 when he was researching why a team
reaches an excellent decision one time, and a disastrous one the next. What he found was that a lack of
conflict or opposing viewpoints led to poor decisions, because alternatives were not fully analyzed, and
because groups did not gather enough information to make an informed decision.

How to Spot Groupthink

Janis suggested that Groupthink happens when there is:

 A strong, persuasive group leader.

 A high level of group cohesion.

 Intense pressure from the outside to make a good decision.

In fact, it is now widely recognized that Groupthink-like behavior is found in many situations and across
many types of groups and team settings. So it's important to look out for the key symptoms.

Symptoms of Groupthink

Rationalization: This is when team members convince themselves that despite evidence
to the contrary, the decision or alternative being presented is the best
one.
"Those other people don't agree with us because they haven't
researched the problem as extensively as we have."

Peer Pressure: When a team member expresses an opposing opinion or questions the
rationale behind a decision, the rest of the team members work together

Outsourced Training Solutions© 38

 to pressure or penalize that person into compliance.
"Well if you really feel that we're making a mistake you can always
leave the team."

Complacency: After a few successes, the group begins to feel like any decision they
make is the right one because there is no disagreement from any
source.
"Our track record speaks for itself. We are unstoppable!"

Moral High Ground: Each member of the group views him or herself as moral: The
combination of moral minds is therefore thought not to be likely to
make a poor or immoral decision. When morality is used as a basis for
decision-making, the pressure to conform is even greater because no
individual wants to be perceived as immoral.
"We all know what is right and wrong, and this is definitely right."

Stereotyping: As the group becomes more uniform in their views, they begin to see
outsiders as possessing a different and inferior set of morals and
characteristics from themselves. These perceived negative
characteristics are then used to discredit the opposition.
"Lawyers will find any excuse to argue, even when the facts are clearly
against them."

Censorship: Members censor their opinions in order to conform.

"If everyone else agrees then my thoughts to the contrary must be
wrong."

Information that is gathered is censored so that it also conforms to, or

supports the chosen decision or alternative.
"Don't listen to that nonsense, they don't have a clue about what is
really going on."

Illusion of Unanimity: Because no one speaks out, everyone in the group feels the group's
decision is unanimous. This is what feeds the Groupthink and causes it
to spiral out of control.
"I see we all agree so it's decided then."

How to Avoid Groupthink

The challenge for any team or group leader is to create a working environment in which Groupthink is
unlikely to happen. It is important also to understand the risks of Groupthink – if the stakes are high,

Outsourced Training Solutions© 39

you need to make a real effort to ensure that you're making good decisions.

To avoid Groupthink, it is important to have a process in place for checking the fundamental
assumptions behind important decisions, for validating the decision-making process, and for evaluating
the risks involved. For significant decisions, make sure your team does the following in their decision-
making process:

 Explores objectives.

 Explores alternatives.

 Encourages ideas to be challenged without reprisal.

 Examines the risks if the preferred choice is chosen.

 Tests assumptions.

 If necessary, goes back and re-examines initial alternatives that were rejected.

 Gathers relevant information from outside sources.

 Processes this information objectively.

 Has at least one contingency plan.

There are many group techniques that can help with this, including the "Mind Tools" listed below. By
using one or more of these techniques to accomplish aspects of the group's work, you will vary the
group's ways of working, and so guard against Groupthink and help make better decisions.

Tools That Help You Avoid Groupthink

Group Techniques:

Brainstorming Helps ideas flow freely without criticism.

Nominal Group Allows each group member to contribute individually, so mitigating

Technique the risk that stronger and more persuasive group members dominate
the decision making process.

Six Thinking Hats Helps the team look at a problem from many different perspectives,
allowing people to play "Devil's Advocate".

The Delphi Technique Allows team members to contribute individually, with no knowledge
of a group view, and with little penalty for disagreement.

Decision Support Tools:

Risk Analysis Helps team members explore and manage risk.

Outsourced Training Solutions© 40

 Impact Analysis Ensures that the consequences of a decision are thoroughly explored.

The Ladder of Inference Helps people check and validate the individual steps of a decision-
making process.

How to Overcome Groupthink

However, if Groupthink does set in, it's important that you recognize and acknowledge it quickly, so
that you can overcome it and quickly get back to functioning effectively.

Follow these steps to do this:

1. Even with good group decision-making processes in place, be on the lookout for signs of
Groupthink, so you can deal with them swiftly.

2. If there are signs of Groupthink, discuss these in the group. Once acknowledged, the group
as a whole can consciously free up its decision making.

3. Assess the immediate risks of any decision, and the consequences for the group and its
customers. If risks are high (for example risk of personal safety), make sure you take steps
to fully validate any decision before it is ratified.

4. If appropriate, seek external validation, get more information from outside, and test
assumptions. Use the bullets above as a starting point in diagnosing things that needs to
change.

5. Introduce formal group techniques and decision-making tools, such as the ones listed
above, to avoid Groupthink in the future.

Key Points

Groupthink can severely undermine the value of a group's work and, at its worst, it can cost people their
lives.

On a lesser scale, it can stifle teamwork, and leave all but the most vocal team members disillusioned
and dissatisfied. If you're on a team that makes a decision you don't really support but you feel you can't
say or do anything about it, your enthusiasm will quickly fade.

Teams are capable of being much more effective than individuals but, when Groupthink sets in, the
opposite can be true. By creating a healthy group-working environment, you can help ensure that the
group makes good decisions, and manages any associated risks appropriately.

Group techniques such as Brainstorming, the Nominal Group Technique and Six Thinking Hats can
help with this, as can other decision making and thinking tools.

Outsourced Training Solutions© 41

Outsourced Training Solutions© 42
Reading resources – Charette Procedure
Tips For Charette Procedure, March 01 2001,
http://www.extension.iastate.edu/communities/tools/decisions/charette.html

(Brainstorming multiple ideas with multiple stakeholders)

The Charette Procedure is a group idea generating and prioritizing tool. Its strength is its ability to
address several issues at once in a highly interactive group setting. The charette procedure involves
several small groups simultaneously discussing parts of the "big picture," then passing their ideas on to
the next group for refinement, enlargement, and eventually, prioritization. The charette procedure is
especially useful when a group has decided what they want to do, but is unsure of all the details
involved in how to do it.

The technique is effective for:

 Addressing several issues simultaneously

 Encouraging active participation

 Sharing leadership among group members

 Building on ideas generated by others

 Keeping discussion active and interesting

An Illustration of the Charette Procedure:

A community group has decided that they want to build a skateboard park for the area's youth. Their
task now is to decide how to implement their plan for a skateboard park. The group decides to address
the following issues:

1. Where should the skateboard park be located?

2. How should the issue of liability be handled?

3. Where are the funds going to come from to build the park?

4. How are they going to raise the public's interest and acceptance for the project?

To start the Charette Procedure, the group is divided into four smaller groups, one for each of the issues
to be addressed. Each small group is assigned one of the issues to discuss. Each small group designates
someone to record all the ideas generated. The small groups brainstorm to generate as many ideas as
possible. The recorders write all ideas on newsprint. After about 10 minutes, the discussion is stopped
and the recorders take the newsprint and move on to the next group. The next group reviews the
newsprint items, refines and adds their own. The rotation continues until each group has discussed each
of the four issues. The last small group in the rotation priorities the newsprint items. The total group is
reconvened. The recorders for each issue report on the priorities set.

Outsourced Training Solutions© 43

Procedure

1. Divide the participants into small groups (5 - 7 people), either by numbering off, or some other
method.

2. Ask each group to select a recorder, then provide each group with a discussion topic or
question. If there are many small groups, some groups may get the same discussion topic or
question; otherwise, each group should get a different topic for discussion.

3. Establish a time limit (8 to 10 minutes) for the groups to generate ideas in response to the topic.
The recorder should write all responses on newsprint.

4. The leader gives a two minute warning then calls time at the end of the time period. The
recorders take the newsprint responses from their group and rotate to the next group, i.e., the
topic goes with the recorder. A suggested rotation order for the recorders (and the topics) is
shown below.

Group 1 Group 2

Group 4 Group 3

5. Once the recorder joins his/her new group, all groups are asked to review the information
generated by the previous group and quickly add any other ideas they have.

6. Repeat steps 3 - 5 until each group has had an opportunity to discuss every issue. During the
last rotation, each group should prioritize the most significant or important ideas generated on
that topic.

7. The total group is reconvened. Each recorder displays the newsprint and summarizes the
discussion and priorities generated by the topic.

8. At this point, the total group may want to discuss the small group reports and review priorities
and reach consensus.

Outsourced Training Solutions© 44

Reading resources – Crawford’s Slip Writing Method
Generating ideas from many contributors, http://www.mindtools.com/pages/article/newCT_95.htm

How do you unlock the collective knowledge and ideas of your team, your department or even your
whole organization? And how do you do this in a way that everyone (not just those with the biggest
egos) gets heard?

The Crawford Slip Method is a simple yet effective type of brainstorming that gives the opinions of all
team members equal weight, however quiet they are.

In fact, you probably will have encountered this way of generating ideas and solutions even if you
haven't called it the Crawford Slip Method.

Invented in the 1920s by Dr. C.C. Crawford, Professor of Education at the University of Southern
California, the method simply involves collating input from people on slips of paper (nowadays often on
Post-It Notes®).

Not only does this help you generate a wide variety of solutions, it also helps people get involved and
feel that their contributions are valued. Writing rather than speaking during the session can have added
advantages: it helps people to think freely without interruption, and it levels the playing field between
quieter people and more outspoken participants.

More than this, as peoples individual contributions are brought together into groupings of similar ideas,
it gives you a feel for the overall "popularity" of each idea.

Tip 1:
The Crawford Slip Method and other creative brainstorming techniques focus on generating ideas and
contributions, rather than how to use these to create a group outcome. If, however, your main need is to
achieve consensus on a particular issue, consider using the Nominal Group Technique instead. This is a
useful method for achieving a robust group consensus on controversial issues.

Outsourced Training Solutions© 45

Reading resources – Step ladder technique
Making better group decisions, http://www.mindtools.com/pages/article/newTED_89.htm

Making decisions within a group can often be challenging. When things go well, they can go very well.
However, when things go wrong, you can end up mired in conflict. Some people may fight for
recognition and position, others may be over-critical or disruptive, while others may sit quietly and not
contribute anything to the overall effort. Because of this, groups can often spin out of control and make
worse decisions than individuals working on their own.

When this happens, it's easy to see why some people throw their hands up in frustration and give up.
However, when a group works in the right way, it really WORKS. Groups that function effectively
together can outperform individuals and make much better decisions.

But how do you make your group effective? How do you get all group members to contribute and
inspire one another to create great ideas and solutions?

The Stepladder Technique is a useful method for encouraging individual participation in group decision
making.

What is the Stepladder Technique?

The Stepladder Technique is a simple tool that manages how members enter the decision-making group.
Developed by Steven Rogelberg, Janet Barnes-Farrell and Charles Lowe in 1992, it encourages all
members to contribute on an individual level BEFORE being influenced by anyone else. This results in
a wider variety of ideas, it prevents people from "hiding" within the group, and it helps people avoid
being "stepped on" or overpowered by stronger, louder group members.

All of this helps the group make better decisions.

How to Use the Tool

The Stepladder Technique has five basic steps. Here's how it works.

Step 1: Before getting together as a group, present the task or problem to all members. Give everyone
sufficient time to think about what needs to be done and to form their own opinions on how to best
accomplish the task or solve the problem.

Step 2: Form a core group of two members. Have them discuss the problem.

Step 3: Add a third group member to the core group. The third member presents ideas to the first two
members BEFORE hearing the ideas that have already been discussed. After all three members have
laid out their solutions and ideas, they discuss their options together.

Step 4: Repeat the same process by adding a fourth member, and so on, to the group. Allow time for
discussion after each additional member has presented his or her ideas.

Step 5: Reach a final decision only after all members have been brought in and presented their ideas.

Outsourced Training Solutions© 46

The Stepladder Technique is similar to the Delphi Method, another tool that's often used in groups to
prevent Groupthink and to encourage participation. While both tools have the same objective, they
differ in a few key ways:

 In the Delphi Method, an objective facilitator or leader manages the group. In the
Stepladder Technique, all members are equal.

 The Delphi Method keeps members anonymous. The facilitator manages the flow of
information, and members may have no idea who else is in the group. The Stepladder
Technique involves face-to-face meetings, so everyone knows who the other members are.

 The Delphi Method is a lengthy process, while the Stepladder Technique is much quicker.

 The Delphi Method is often used for major decisions that need input from a large number
of people. The Stepladder Technique works best with smaller groups that make a wide
range of decisions.

Tip:
Groups can begin to lose their effectiveness and ability to make good quality decisions if they have too
many members. Keep your group small – four to seven team members – to maximize effectiveness.

Key Points

The Stepladder Technique is a step-by-step approach that helps you ensure that all members of a group
participate and are heard. The technique allows shy, quiet people to present their ideas before other
group members can influence them, and it allows everyone to hear many different viewpoints before
reaching a final decision.

Outsourced Training Solutions© 47