Leadership and Organizational Performance Series Decision making: Are we effective and how does it work? Lunch and Learn – October 3, 2008

Our Commitments to You We will start at 12:05 and end at 12:55 We will start at 12:05 and end at 12:55 We will facilitate “evidence-based” and theoretically sound discussions on leadership. We will facilitate “evidence-based” and theoretically sound discussions on leadership. We will facilitate discussions regarding skill building and practical application of those skills. We will facilitate discussions regarding skill building and practical application of those skills. We will encourage a community of local leaders that can help others We will encourage a community of local leaders that can help others

Previous sessions Leadership: A process whereby an individual influences a group of individuals to achieve a common goal (Northouse, 2005) Leadership: A process whereby an individual influences a group of individuals to achieve a common goal (Northouse, 2005) Our perceptions and visualizations of leadership affect our beliefs about leadership and our practice of leadership Our perceptions and visualizations of leadership affect our beliefs about leadership and our practice of leadership Trust: Stronger influence on behavior than any other factor. Central to the leader-follower relationship. Trust: Stronger influence on behavior than any other factor. Central to the leader-follower relationship. Leadership skills: aware, intentional, start with self Leadership skills: aware, intentional, start with self Leaders can influence change through: Power (best in times of crisis), Reason (limited effectiveness due to complex motives), Reeducation of beliefs, values, attitudes Leaders can influence change through: Power (best in times of crisis), Reason (limited effectiveness due to complex motives), Reeducation of beliefs, values, attitudes Coaching and developing others Coaching and developing others

Variables that lead to trust and collaboration Open Common Purpose & Vision Common Values Alignment & Clarity Trust (affective / competence) Collaboration Communication Functional Behavior Consistency (walk the talk) Novak, 2005 (Individual level)(dyadic or organizational level)

To align: Must understand mission, values, vision, strategy Mission Why We Exist Values What’s Important to Us Vision What We Want to Be Strategy Game Plan-How do we get there Strategy Map Clearly Communicate the Strategy Accountability and Measurements Measure and Focus Targets and Initiatives What We Need To Do Personal Objectives What I Need To Do

Conflict Conflict: can be functional or dysfunctional 1.Interdependence fosters cooperation or conflict 1.Interdependence fosters cooperation or conflict 2.Stages of conflict (usually over time): 2.Stages of conflict (usually over time): Perceived; felt, manifest (acted on); aftermath Perceived; felt, manifest (acted on); aftermath Causes of conflict Causes of conflict Goal differences (resources, time horizons) Goal differences (resources, time horizons) Perceptual differences (status, culture, values) Perceptual differences (status, culture, values)

Conflict Competition between groups (Schein) Competition between groups (Schein) Group becomes loyal, conforming, structured, task oriented Group becomes loyal, conforming, structured, task oriented Other group becomes enemy and perceptions of them are distorted Other group becomes enemy and perceptions of them are distorted Winning group becomes cohesive, complacent, takes credit, less task oriented Winning group becomes cohesive, complacent, takes credit, less task oriented Losing group blames, distorts, and increases its task orientation Losing group blames, distorts, and increases its task orientation

Decision-making Decisions seldom made at a single point Decisions seldom made at a single point Identifying problem is a large part of solving Identifying problem is a large part of solving Experts use knowledge, recognize patterns to frame the problem Experts use knowledge, recognize patterns to frame the problem Understanding a person's frame allows prediction and understanding of their decisions Understanding a person's frame allows prediction and understanding of their decisions Decision-makers always factor in the perceptions of others as they make the decision Decision-makers always factor in the perceptions of others as they make the decision

Decision-making models Organizational process (BAU, pre-established criteria, by the book) Organizational process (BAU, pre-established criteria, by the book) Rational (all info & alternatives, understanding, objective, group goals, one best answer) Rational (all info & alternatives, understanding, objective, group goals, one best answer) Emotional (too much info & conflict, conflicting goals, avoiding distasteful) Emotional (too much info & conflict, conflicting goals, avoiding distasteful) Intuitive (uses experience, during uncertainty and time pressure) Intuitive (uses experience, during uncertainty and time pressure) Political (competing interests & motivations, subjective, negotiation, consensus) Political (competing interests & motivations, subjective, negotiation, consensus) Administrative (“satisficing” is good enough, rarely have full information) Administrative (“satisficing” is good enough, rarely have full information) Garbage can (solutions looking for issues, make it up as we go, seat of our pants) Garbage can (solutions looking for issues, make it up as we go, seat of our pants)

Decision-making process 1. Consensus (commitment not agreement); requires shared objectives, status equals, balanced participation, opinions not fixed 2. Negotiation (when cannot reach agreement) 3. Voting (least satisfying); accomplishes closure but not harmony or commitment Groups are decision-making systems; very slow compared to individuals

Decision-making approaches Western Cultures Western Cultures Let’s get down to business (efficiency) Let’s get down to business (efficiency) We need to make fast decisions (time is money) We need to make fast decisions (time is money) Execution of decisions takes forever (resistance to change) Execution of decisions takes forever (resistance to change) Eastern Cultures Eastern Cultures Let’s build a relationship first (effectiveness) Let’s build a relationship first (effectiveness) Decisions are based on mutual benefit Decisions are based on mutual benefit Execution of decisions is fast (ownership & commitment) Execution of decisions is fast (ownership & commitment)

Ask questions and listen What is important to you? What is important to you? What bothers you about this situation? What bothers you about this situation? How does this really affect you? How does this really affect you? It sounds like this matters to you a lot – is that right? It sounds like this matters to you a lot – is that right? What would happen if this occurred? What would happen if this occurred? What would you do if you got this? What would you do if you got this? Can we agree on this solution? Can we agree on this solution? You must listen at a much deeper level than normal. Avoid the traditional approach where you listen just long enough to jump in and “solve the problem.” You must listen at a much deeper level than normal. Avoid the traditional approach where you listen just long enough to jump in and “solve the problem.” Even when you try to listen, it is hard to understand what the other party really wants … “The way we see the problem is the problem.” Even when you try to listen, it is hard to understand what the other party really wants … “The way we see the problem is the problem.”

Negotiating Define negotiations as mutual problems to solve Define negotiations as mutual problems to solve Split the pie (competing / defeating) or make the pie bigger (collaborating) Split the pie (competing / defeating) or make the pie bigger (collaborating) If you will have an ongoing relationship, try to get win- win. If you will have an ongoing relationship, try to get win- win. Success follows cooperative efforts, not win-lose negotiations (Covey).

Results / Outcomes High Low Cooperation / Relationship Accommodate Build relationships Compromise Split the difference Avoid Withdraw / passive Compete / Defeat Win at any cost Collaborate Problem solving I win, you win I lose, you lose I lose, you win Both win, both lose I win, you lose

Competing / Defeating Style (adversarial, hostile, positional, win it all, distributive) Hostile or deceptive charm Hostile or deceptive charm Sacrifice relationships for sake of gain Sacrifice relationships for sake of gain Conceal interests, confuse the agenda Conceal interests, confuse the agenda Conceal relevant information Conceal relevant information Take extreme positions, hold them tenaciously Take extreme positions, hold them tenaciously Talk about rights Talk about rights Trick or deceive the other side, create tension Trick or deceive the other side, create tension Stall, refer decision to higher authority Stall, refer decision to higher authority

Collaborating Style (win-win, expand the pie, interests based, problem solving, integrative) Professional, pleasant or respectful Professional, pleasant or respectful Build trust for long-term relationship Build trust for long-term relationship Share information, seek possibilities and options Share information, seek possibilities and options Expand the pie Expand the pie Discuss the real issues, solve problems Discuss the real issues, solve problems Describe interests, seek to understand others Describe interests, seek to understand others Seek agreement on principles and interests Seek agreement on principles and interests Truthful, ethical, consistent, reliable Truthful, ethical, consistent, reliable Make reasonable accommodation Make reasonable accommodation Proper authority levels involved Proper authority levels involved

Next sessions Nov 7Relationships: How “work really gets done.” Dec 5Building Teams that Work! Jan 9Servant leadership Feb 6Power: Who really has power? Mar 6Motivation!

You would call me when … At work … At work … Personal … Personal … Hobbies … What knowledge, skills, and abilities (KSAs) do you have that can help others in this room? Hobbies … What knowledge, skills, and abilities (KSAs) do you have that can help others in this room?