Decentralized Decision-making

Decentralizing decision-making helps make better and faster decisions while inspiring people to feel needed by the organization and to be empowered. It is a central aspect of democratic leadership and a core way to build a quality culture.

Decentralized decision-making requires psychological safety and a recognition that it just doesn’t happen. Like any behavior, it needs time needs to be spent to develop and nurture.

As a value, decentralized decision-making might look like this:

  1. Value: Decentralized Decision-Making
  2. Definition: Decisions are made by the people who do the work. Everyone is trained to make data-driven decisions by paying attention to the problem, task or numbers, not the person.
  3. Desired Behaviors:

To make this work, it is critical to teach decision-making. A popular method is RAPID, an acronym of 5 words that refer to the group of people involved in the steps of decision-making -Recommend, Agree, Perform, Input, Decision. This was a framework developed by Bain & Company as a systemized framework to design an action plan regarding a problem

With the base of how a decision is made, the next step is to decide what sort of decisions exist in the organization, and how they get made. I recommend two axis:

  1. The Scale of the Decision: What is the risk level of the decision
  2. The Level of Process Controls: How well defined is the process around the area of the decision

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.