By understanding the characteristics of quality decision-making and taking steps to build a more decisive culture, HR can actively contribute to progress and performance.

Decisions are an integral part of everyone’s role in the workplace, from team members to the Board. While they vary in terms of their complexity, urgency and potential consequences, decisions ultimately shape the overall performance of the organisation. 

BCG’s Henderson Institute emphasises the critical role of good decision making in driving successful business strategy and execution. A comprehensive global study, reported in Harvard Business Review, surveyed executives from 350 organisations about their performance and organisational effectiveness. 

The survey revealed that top performers consistently made and promptly implemented high-quality decisions. This finding suggests that exceptional performance is closely linked to making timely and effective decisions, enabling smooth execution to take place. 

A high-quality decision isn’t necessarily one that gets the best results. Rather, a quality decision includes five elements: a clear and helpful decision frame (including values and goals), useful information, creative alternatives, sound reasoning and commitment to follow through.

The power of quality and timely decisions also implies that their absence can have negative impacts on performance.

As humans, we crave certainty and find the lack of it uncomfortable. This means that making decisions, especially where the options, consequences or outcomes involve ambiguity and uncertainty, can be a stressful experience.      

Making decisions under stress

The impact of stress on our decision making can be significant. Our frontal cortex and working memory are compromised, leading us to do one of two things. 

Firstly, we might make impulsive choices and act too quickly rather than considering the potential consequences or striving for the best possible outcome. Making quick, habit-driven choices can sometimes mean we ignore the bigger picture and future implications, potentially making riskier choices. 

The second possible outcome is that we postpone or avoid making a decision. This might involve spending excessive amounts of time avoiding the difficult task or looking for certainty before making a choice. We might review vast amounts of information, carefully consider our options and hold multiple discussions in pursuit of a clear-cut solution that may never come to fruition. 

Delaying decisions may reduce our stress and cognitive demand; however, we might be wasting time or missing out on other opportunities. It’s important to remember that every decision comes with a cost, including not making one.

Encouraging a decisive culture can safeguard against these negative results, providing a scaffold for progress and performance.      

While technology provides decision support, humans are the ones making these tough decisions every day. HR practitioners understand humans and how to get the best out of them. Therefore, HR practitioners have a key role to play in building and transforming organisations into high-performing and dynamic ecosystems by helping  build and support a decisive culture.

“It’s important to remember that every decision comes with a cost, including not making one.”

What is a decisive culture?

A decisive culture reflects the understanding that an organisation’s success hinges upon human cognition and behaviour.      

When under stress, our tendency can be to run (flight) or stop (freeze). This very human reaction can be seen across the organisation in daily crises, targets and KPIs, and even strategy. 

For example, in the current economic climate, organisations will likely react by tightening expenses and reducing headcounts. However, this approach may overlook the potential for significant longer-term impacts. Insead research involving 10,000 organisations over 10 years found that while those organisations who elected to delay or reduce investment increased profits in the first few quarters, the longer-term view (20 quarters) showed a massive reversal in profitability. 

Keeping human cognition and behaviour front of mind and asking questions at the right time can drive progress in the short and long-term.      

In a decisive culture, there is a productive focus on moving forward and making decisions in a timely manner. This approach can mean avoiding common cognitive pitfalls such as procrastination, excessive information gathering, analysis paralysis, and relying on default, habit-driven choices.      

Depending on the decision, progress might be a step forward, to the side, or even a small step backwards to facilitate forward movement. 

For instance, sourcing temporary employees or contractors instead of pausing or stopping important strategic projects is an example of making progress through a side step. This decision ensures that progress continues without overburdening employees. 

Similarly, temporarily reducing KPIs during stressful periods might seem like a step backwards, but, in the long run, it will yield better results by preventing burnout and maintaining a healthier, more productive workforce.

How can HR help build decisive cultures?

The role of HR practitioners has evolved beyond simply managing human resources. Rather, the mandate of HR is to foster dynamic, knowledgeable, and forward-thinking organisations by harnessing human potential. 

The HR function is, therefore, perfectly placed to understand and monitor the human aspect of decision making and assist in overcoming our limitations, ultimately maximising the value of each decision.

In decision making, it is common for individuals or teams to rush to a conclusion, to reach a point where the need for additional information or time is raised, or where a ‘What did we do last time?’ question will arise. In these situations, a few questions can challenge our natural stress response and keep decision-making on track.

Whether you are faced with an individual or team decision, here are a few questions that might help to focus on progress:

Fast decisions 

• Is there any emerging information we haven’t considered?
• What assumptions are basing this decision on and what are the consequences if these assumptions are incorrect?
• How does this decision align with our short-term and long-term goals?

Decision delay 

• When do we need to have made a decision?
• What are the potential consequences of delaying this decision?
• Are we delaying this decision because we feel uncomfortable or is there extra information we need?
• What’s one thing we can decide now to keep this moving forward?

Requests for additional information

• What will this extra information tell us? What would happen if we made a decision now?      
• What are the consequences of delaying the decision until we have this information?

Research indicates that confidently asking assertive questions can have a positive impact on your influence and presence at the decision-making table.      

By actively engaging in organisational decisions and posing progress focused, thought-provoking questions, HR practitioners can significantly enhance their influence while contributing to the overall performance of the organisation.     

Samantha Rush is an expert in decision-making. She has formal qualifications in HR, Psychology, an MBA, and is currently undertaking a PhD in decision making. She combines this evidence-based knowledge with 20 years’ experience as a Corporate Executive, Company Director, Business Advisor and Consultant to help unravel complexity and facilitate great decision making that drives results.

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