Kereta Disrupsi Telah Tiba...

Di tengah perjalanan dengan KA Agro Wilis dari Yogyakarta menuju Bandung, terlintas sekali lagi dalam benak kata "Disrupsi".

Kata ini dipopulerkan oleh Guru Manajemen Indonesia Prof Rhenald Kasali dari Universitas Indonesia.

Era Disrupsi adalah sebuah era yang didalamnya terjadi perubahan yang sifatnya sungguh melahirkan sesuatu yang sama sekali baru baik itu dari struktur, sistem dan outputnya. Itu hasil dari pemahaman saya dari berbagai informasi yang didapatkan sampai saat saya menulis di sini.

Disrupsi ada kemiripan dengan evolusi, revolusi, reformasi, bahkan transformasi, terutama dalam satu kata utuh yang kita kenal, perubahan.

Lantas apa yang membedakan dengan yang lainnya?

Sejauh pemahaman saya yang membedakan disrupsi dengan yang lainnya adalah adanya agile development system dalam paradigma pengembangan sebuah software. Yap, it's an IT development impact....

Lahirnya konsep kerja development yang agile inilah yang memicu kelahiran android system dan seluruh apk nya....

Juga memicu kelahiran vertical agriculture system...one stop service appilcation...dan lainnya...

Menurut Kamus Besar Bahasa Indonesia sendiri definisi disrupsi adalah tercabut dari akarnya...jika dibahas lebih lanjut ini berarti dari tempat yang sama bisa sama sekali tidak akan tumbuh apa pun lagi selain tanah, bisa tumbuh sesuatu dimana sesuatu yang baru itu bisa tumbuhan yang sama atau berbeda sama sekali...

Makanya dibilang era disrupsi itu badai karena benar-benar bisa meluluhlantakkan habis sesuatu yang telah ada atau eksis...namun bagi yang positif dengan hal ini sungguh merupakan suatu DNA dari sebuah era baru yang memberikan adrenalin baru untuk berkreasi (sebuah bluechip company nasional menyebut disrupsi adalah kreasi baru) ....

Dan menurut Prof Rhenald Kasali juga setelah menyaksikan tayangan Nat Geo "Earth 2050", esok hari itu sekarang ...The Future is Now...mungkin ini juga yang melatarbelakangi jargon yang lagi populer-populernya - "...jaman Now"....

Bagi saya, tersisa pertanyaan setelah esok hari adalah sekarang...what's next after the future....setelah kereta evolusi lewat, kereta revolusi berlalu, kereta reformasi pergi, kereta transformasi berkelebat, dan kereta disrupsi tiba...

Dan saya lihat dipangkuan kursi empuk kereta ini anak saya tertidur nyenyak sambil memeluk ultraman zero dan seven tercintanya....

KPI infographics

How To Take "Criticism" Effectively? The Answer Is Externalized It...!!

Once again...!! Since about one month, I can fill my blog again...But telling you the truth, this time is really no idea in my mind to put on ...so when I am blogwalking, I've found in my browser's unsorted bookmarks, Jessy Mc Laren's Blog, she has the great blog! And one of her article is about "Taking Crticism"....when I read it, it really adds my knowledge in Taking Criticism Effectively...surely I think "Externalizing Critic" is one of the way to take Critics Effectively....hopefully you will have the positive things too for your ownself...

 "Criticism may not be agreeable, but it is necessary.

It fulfills the same function as pain in the human body.

It calls attention to an unhealthy state of things."

~ Winston Churchill ~

Highly Effective Business Performance Management Manifesto In An Uncertainty Age

Di bulan Oktober 2008, Peter Oppenheim - CFO Apple berkomentar "Visibilitas semakin rendah dan forecasting (berbeda dengan meramal dalam persepsi sehari-hari) merupakan tantangan besar", yang sebenarnya mungkin merupakan bahasa halus dari,"Kita sama sekali tidak memiliki ide memadai tentang apa yang akan terjadi esok hari."

Di tahun 2010, CFO UPS - Kurt Kuehn melaporkan," Normalnya kita sangat berobesesi untuk membuat perencanaan yang komprehensif dan akurat, namun dengan kejadian resesi ekonomi 2008 kami memandang perencanaan adalah sebuah upaya membuang-buang waktu."

Apple dan UPS adalah sebagian dari raksaasa manajemen yang tersistem dengan baik yang kita kenal. Mereka memiliki dan telah mengimplementasikan integrated framework yang sangat komprehensif dalam membuat perencanaan maupun forecasting. Namun mereka juga memiliki pengalaman berharga bagaimana mereka berjuang bersama raksasa-raksasa dunia korporasi lainnya dalam menghadapi hantaman badai krisis 2008. Bahkan banyak dari nama besar korporasi berjatuhan seperti, Lehman Brothers, Bear & Stearns, General Motors dan Chryslers adalah sebagian dari mereka yang berjatuhan. 

Mereka yang berguguran sudah tidak asing dengan yang namanya Business Performance Management (BPM framework) yang mumpuni. Bertahun-tahun mereka terus menerus mengembangkan integrated system yang tak kecil memakan biaya dan upaya. Namun dengan terimbasnya mereka dengan krisis 2008 menunjukkan hasil dari upaya mereka selama ini adalah nihil besar.

Harapan besar dengan pengembangan integrated framework adalah adanya agilitas, memberi perbedaan besar dalam pengambilan keputusan dan perencanaan, dan fleksibilitas dalam meningkatkan kinerja bisnis mereka menjadi pupus.

Kolaborasi

Dahulu setiap pebisnis berusaha mencari lokasi yang jauh dari kompetitor. Namun, sekarang para pebisnis yang ada dalam satu industri berlomba untuk berkumpul bersama di sebuah sentra usaha. Maka sekarang kita lihat seperti sentra bisnis dengan produk atau jasa spesifik dan sejenis, ada sentra bisnis produk elektronik, pusat perdagangan tektil, sentra kuliner, bahkan sudah mulai ada sentra jasa lawyer yang berdampingan bersama-sama.

Orang tak takut lagi bersaing dengan tetangga, justru hidup berdampingan secara sehat. Dengan kata lain, orang tak sibuk lagi berkompetisi, tetapi dengan senang hati ingin berkolaborasi. Para pelaku bisnis tahu persis bahwa pasar terlalu kecil untuk diperebutkan satu sama lain, namun justru terlalu luas dan terbuka lebar untuk dikembangkan bersama-sama.

Ketika ekonomi dunia sedang mengalami turbulensi maha dashyat, tak satu negara pun sanggup menyelesaikannya sendiri. Termasuk negara adidaya seperti USA sekali pun sepakat bahwa semua negara harus bergandengan tangan mengatasi persoalan ini. Tiap individu, korporasi, dan juga pemerintah harus keluar dari semangat ultrakompetisi yang saling membunuh satu sama lain. Sebaliknya, hanya kolaborasilah yang mampu menciptakan inovasi terobosan untuk menyelesaikan pe rsoalan multidimensi.

Khususnya bagi dunia usaha, semangat kolaborasi bukan sekadar sebuah pilihan, melainkan sudah menjadi keniscayaan. Jika ingin tetap eksis, sebuah perusahaan harus membangun jejaring yang terbuka dengan pesaing, pelanggan, pemerintah, asosiasi pengusaha, komunitas  akademisi, serta mitra bisnis mereka.

Model inovasi tertutup yang ditempuh oleh sebuah organisasi tunggal adalah pendekatan masa lampau. Inovasi terbuka lewat kolaborasi antar institusi akan menjadi daya saing baru. Masalahnya, bagaimanakah bentuk kolaborasi yang cocok bagi perusahaan kita?

Pakar manajemen inovasi, Gary P. Pisano dan Roberto Vergantti, dalam tulisan Which Kind of Collaboration is Right for You? (HBR, Desember 2008), memperkenalkan empat model kolaborasi.

Elite Circle
Sebuah perusahaan memilih sekelompok orang tertentu yang diminta merumuskan masalah sekaligus juga mengajukan usulan pemecahannya.

Innovation Mall
Wahana bagi sebuah perusahaan untuk menempatkan masalahnya dan mengundang orang untuk mengusulkan pencerahan.  Setelah itu, perusahaan akan memilih solusi terbaik diantara ususlan yang ada. Salah satu contoh wahana ini dapat berupa website yang berfungsi menempatkan berbagai problem. Setiap orang bebas masuk ke website untuk memberikan komentar dan alternatif solusi atas problem yang diposting tersebut.

Innovation Community
Cara ini memungkinkan setiap orang mengajukan masalah apa pun, sekaligus menawarkan solusi apa pun. Secara kolektif mereka memutuskan solusi yang akan digunakan bersama. Contoh populer model ini adalah komunitas peranti lunak linux open source.

Consortium
Memilih beberapa perusahaaan mitra secara selektif untuk merumuskan masalah, menentukan mekanisme kerja, serta memutuskan solusi yang akan ditempuh. IBM memakai pendekatan ini dengan memilih beberapa perusahaan mitra untuk mengembangkan teknologi semikonduktor.

Setiap pemimpin harus memiliki pengertian tentang strategi perusahaan secara keseluruhan, sebelum memilih model kolaborasi yang akan ditempuh. Demikian juga setiap perusahaan harus mampu menawarkan sesuatu yang unik bagi proses kolaborasi tersebut, agar mampu terlibat secara aktif  sebagai pelaku.

Namun, apa pun model kolaborasi yang dipilih, saatnya dunia usaha sepakat membangun sinergi kolaborasi dalam memburu inovasi. Sudah bukan jamannya lagi perusahaan menutup diri dan sibuk menggarap inovasi seorang diri.

Source:  Ekuslie Goestiandi, Kontan, 23 Februari 2009

Taking Criticism Effectively

“Criticism may not be agreeable, but it is necessary.
It fulfills the same function as pain in the human body.
It calls attention to an unhealthy state of things.”
~ Winston Churchill

Criticism is crucial for personal improvement. It’s the most direct way to find out what you should improve on. However, accepting criticism can be emotionally challenging. Afterall, we’re only human, who wants to hear bad stuff about ourselves?

It’s hard to not take it personally. Our instinctive reaction is to become defensive and we shut out potentially helpful and life-enhancing tips. By doing this, we miss out on what could supercharge our improvement.

So how can you take criticism without getting self-conscious and defensive?

Answer: An effective way to accept criticism is to externalize it.

When you externalize criticism, you escape the defensiveness trap. You stop being self-conscious and take criticism objectively, which lets you reap the benefits of the helpful tips that the criticism contains.


The criticism isn’t directed at you personally, but at a writer, artist, worker, developer (or whatever else you’re getting feedback for) that just happens to have the same name as you. When you take criticism objectively, your initial defensiveness fades away, simply because you’re not taking it personally anymore.

Externalizing criticism lets you extract helpful tips from even the most critical feedback. You take the bits that make sense to you and discard the rest. You don’t risk getting defensive or even feeling bad or self-conscious.

Externalizing criticism is also a shield from bad and unhelpful criticism. It doesn’t matter how much or what kind of comments and criticism you get: you look at it all objectively. You can take what makes sense to you and discard the rest.

When you externalize criticism, you can easily take and use it to supercharge your personal improvement.

5 Steps to Effectively Taking Criticism

Ready to improve your taking of criticism? Good.

Next time you ask for feedback, follow these 5 steps to externalize criticism:

1. Wait for your gut reaction to pass before doing anything – let your emotions disappear, so you don’t take the criticism personally and become defensive
2. Imagine the criticism is directed at someone else – some person who happens to have your name and does exactly what you do
3. Keep your mouth shut – listen, don’t defend
4. Discuss the person’s points – asking questions will a) help you to get even more useful tips from them, and b) externalize the criticism more (you’re seeing it even more objectively this way)

Rinse and repeat every time you get feedback until externalizing criticism becomes a habit.

(Bonus) How to even more effectively take criticism:

1. Be confident – believe in what you do, so that even the most critical comments don’t sway your direction
2. Have a clear goal in what you’re doing – so when you ask for feedback on it, you can take criticism to improve the key areas rather than let others dictate the direction and get lost

Why It’s So Hard to Take Criticism

The reason we get defensive when taking criticism is because we’re tied to our ego. So when someone is giving tips on how we can improve, that person is indirectly acknowledging that we’re not great at something. And our ego gets bruised.

As Dr. Leon F. Seltzer explains in his Psychology Today article on why criticism is so hard to take:

“Criticism, even well-intended criticism, can be understood as a direct assault on our ego. When (however unconsciously) we’ve come to associate our very selves with our ego or point of view, then whenever our perspective is questioned, disbelieved, or disputed, we cannot but experience ourselves in jeopardy – our mental and emotional poise at once thrown into disequilibrium.”

Even if it’s made clear that the criticism is not to criticize but instead show how you can improve, you naturally want to defend yourself. And when you go into defensive mode, you don’t get the tips from the criticism that could really supercharge your improvement.

So detach yourself from your ego – at least when you take criticism. Externalize the criticism so you look at it objectively, rather than as a critique of yourself (and thus your ego).

An Experience with Criticism

Back then, I don't really care what people think of me. When they told me that they don't like my attitude or the way I handle things, I think that I'm right, and they should be able to accept it.

But as I grew up, I am able to take criticism more openly. I will never get mad to the person who criticized me. I thank them for telling me my minus point. Only true friend are able to do that.

After they criticized me, I will listen and never argue. But if I had my reason, I will tell them. But then I guess, it is in our instinct to be defensive. But I do take note and on my own free time, I will think it thoroughly and think of ways to improve whatever it is that has been bothering them.

So friends, if you had anything about me you want to critic, feel free to contact me. I welcome criticism, that's the only way one can see oneself from another person's eye :)

How to Take Criticism

Having trouble taking criticism? Know that the useful tips can help, but you block yourself from them by taking criticism personally and getting defensive? Don’t worry – it’s a natural reaction, and there’s a solution: Effectively accept criticism by externalizing it.

You’ll supercharge your personal improvement by being able to easily get useful tips from people’s feedback. You’ll look at the criticism objectively and take away what makes sense to you, using it to improve what you’re doing. And by listening and discussing instead of defending, you’ll get even more use out of the criticism.

Now go out there and ask for some feedback. Take the criticism, externalize it, and supercharge your improvement.
Source: http://jessymclaren.blogspot.com/2011/02/how-to-take-criticism.html

Leadership in Facing Volatility, Uncertainty, Complexity and Ambiguity

An organization, especially with a multinational scope, faces a major structural reorganization that contains significant functional changes and leadership challenges.  Facing the Volatility, Uncertainty, Complexity, and Ambiguity (VUCA) are four leaders responsible for implementing a significant part of the organizational change without losing strategic momentum.

Finding VUCA Prime

Like most organizations, the act of bringing in a high profile external consulting firm eight months ago signaled to every executive in the business unit that significant change was possible.  Without question, they each had their own story of what that would or should entail.  Seated around the table were four corporate leaders who knew the nature and extent of the impending reorganization before it was announced.  Their task was to make it happen without losing focus, momentum, and direction – to change horses at a full gallop over rough terrain without falling off.

The conversation was at first intense, but not adversarial.  Dave, my client, led his colleagues in a lively dialogue that confirmed the key volatilities, uncertainties, complexities, and ambiguities – VUCA – that we had previously discussed.  Increasing destabilization in any one of the four VUCA elements could have a negative snowball effect, yet stability was neither possible nor helpful.

In VUCA situations, the destabilizing events impact different parts of the system differently.  Actions that amplify (increase) the positive and dampen (decrease) the negative help leaders harness the instability and act their way forward, learning as they go.  Identifying and applying these two types of interventions is a major challenge and opportunity for leaders in a VUCA world.  Enter VUCA Prime – Vision, Understanding, Clarity, and Agility.  VUCA Prime is the contribution of Bob Johansen,[i] emerging from his work with corporate, military, non-profit, and government leaders as they navigated their VUCA challenges.  They suggest where and what to amplify and dampen within a VUCA situation.

The forces of VUCA and VUCA Prime exist in dynamic equilibrium, and leaders can balance the energy of either side with its complement.  The dynamic interplay of VUCA and VUCA Prime generates the energy that can drive organizations to adapt, change, and evolve with the conditions of their environment (the sum of the political, economic, social, technological, and government/regulatory background).  As the five of us pondered what to do next from a leadership development perspective, we began to see places within the current and new organization that needed less Volatility and others that needed more Volatility.  In both cases Vision was a complementing force that we could work with.  With the group’s input, Dave and I designed a leadership development plan for the executive team as part of the restructuring kick-off and the 2011 goal-setting and planning process.  The exercises we used set the conditions for the executive team to think and act in new ways.

Lessons for Leaders

Useful methods for weaving together the dynamic forces of VUCA and VUCA Prime (the weaving is represented by the infinity symbol) include:

Volatility ∞ Vision: Future Back

• An exercise that views today from the perspective of the desired future and creates milestones for getting there

Uncertainty ∞ Understanding: Adaptive Change Model[ii]

• This model of change weaves together the transactional/doing aspects of change and the transformational/relational aspects of change

Complexity ∞ Clarity: Sense making

• A method of tuning in to weak signals in the environment, searching for what might be possible in order to act with informed sensibility

Ambiguity ∞ Agility: Safe Fail and Ritual Dissent

• An exercise that combines rapid prototyping of ideas and action with the practice of listening to the creative criticism it generates

Source : http://managementhelp.org/blogs/leadership/

13 Explosive and Negative Characteristics of Team Members

Many teams and teamwork efforts fail due to the personal character of the members of the organization.  This does not have to take place.  If those leading a team of people could see diversity and personal differences as a positive resource to develop this could create a powerful resource of human talent.  There are certain personal behaviors that can destroy teamwork. It would help any leader to identify these personality traits. Negative characteristic can be handled and directed toward a positive creation of a team.  Getting to know these traits is the starting point.

1. Tendency to Criticize
It was once said, “A critic is a legless man who teaches running.”  Criticism can be a productive tool, however, those who have a tendency to criticize often are not productive team members. 

2. Unpredictable Mood Swings
This type of personality trait is very frustrating for any team leader.  It is hard to navigate any ship when you do not know which way the wind is going to blow.

3. Preoccupation with Self
People who are constantly thinking of themselves and themselves alone are not team players.  This type of person relates well with the Greek Narcissus.  This person can kill a team if they go unchecked.

4. Use of a Grading System for Others
Here is a person who has a tendency to grade others either from a 1 to 10 scoring system or from A,B,C,D,F grading system.  This gives them a sense of feeling good about themselves if they can place others in a lower or lesser category.  This connects well with the next characteristic.

5. Pleasure in the Failure of Others
There are some people who simply take great delight in the failure of others.  Somehow this failure makes them feel good.  This is not the type of person you want on your team.  In fact, a person who has this strong personality trait is extremely destructive for teamwork development.

6. Communication Style that Induces Guilt
There are some people that do not want others to feel good about themselves so they have become experts at inflicting guilt.  This person simply wants others to feel bad about themselves.  They talk a lot, a whole lot!  This person will make you tired because being positive is not in their nature.

7. Impatience with Shortcoming of Others
This is the “Perfect One!”  This person has no time for the weaknesses of others.  After all, they have no weakness and those with weaknesses need to get out of the way.

8. Brooding over Unpleasant Circumstances
Wow, how pleasant is this kind of individual?  This is the kind of person that always seems to have steam flowing off the top of their head.  The word “happiness” does not seem to be a part of their working vocabulary.

9. Holding Grudges and Keeping Score
Is it necessary to say much about this type of person?  These are the kind of people if you apologize to will say, “I will forgive you but I will not forget it!”

10. Tendency to Be Demanding
This person does not ask, “Would you please…..” or “Can I ask a favor of you?”  This is how they work: “Bob I need you to do it and I need you to do it right now!”  Don’t you just want to bend over backwards for this kind of person?

11. Forcefully Expressing Opinions
This person is the type that is firm, forceful, forcible, energetic, vigorous, direct, assertive, insistent; certain, definite, out-and-out, one hundred percent; decided, determined, categorical, unqualified, unconditional, unequivocal, absolute, explicit, downright, outright, clear!  Say no more!

12. Desire to Be in Control
Most teams will have to address this somewhere along the way.  There are some people who want absolute and total control and will kill teamwork in the beginning.  Having a team leader is not a bad idea but a good leader will embrace and encourage the skills of every person on the team.

13. Refusal to Be Humble
“Oh Lord, its hard to be humble, when you’re perfect in every way…”  This was a song that Mac Davis sang years ago (Click here for the song! When you go to the video give yourself time to get to the song).  This would be a great song to email to those who are having a hard time with humility.  Humility can stop a great deal of problems if it used by every team member.

Now these 13 characteristics could be depressing if your team had all 13.  Most teams do not have all of these characteristics in their team members but many of these will have to be addressed.  The best way to address these problems is to be direct and learn to laugh.  Admitting your own flaws before addressing the character flaws of others on the team can help create a strong teamwork environment. 

Source : www.likeateam.com

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Decision By Objectives - How to Convinces Others That You Are Right

In this contemplation associated with a management process, I can say I have a lack of experience in executing decision especially  in Crucial Decision Area. I often feel there is something wrong or something not fit yet when I have to decided. As a result I usually feel comfortable to make many scenario with all of its detail but when I face off the compulsion to take a decision/judgment, I have an adversity in it. So I think it is my weakness that to be improved.

At first I have a slightly confused with the starting point to do it. I've known many popular decision making techniques tool both of quantitative and qualitative methods in management. But I think I need something more praticed related with it.

And this is some good tips from "Decision By Objectives - How to Convinces Others That You Are Right" by Ernest H Forman & Mary Ann Selly- 2001;  World Scientific Publishing Co. Pte. Ltd that I think fit to my needs.

I got areas that I should to developed related to my needs according to this book are :

• Prioritize

• Evaluate alternatives

• Allocate resources

• Deliver powerful presentations

• Justify/defend recommendations

• Make meetings more effective

• Improve communications

• Achieve consensus

• Eliminate fifty percent of your business worries

And I've learned too there are common mistakes when making crucial decisions:

1. Gathering information and reaching conclusions without thinking about the crux of the issue or how decisions like this one shouldbe made
2. Setting out to solve the wrong problem because your framework causes you to overlook attractive options or lose sight of important objectives
3. Failing to define the problem in more ways than one, or being unduly influenced by the frames of others
4. Failing to collect key factual information because of overconfidence in your assumptions and opinions
5. Relying on 'rules of thumb' for crucial decisions, or on the most readily available information
6. Trying to keep straight in your head all the information relating to the decision rather than relying on a systematic procedure
7. Assuming that a group of smart people will automatically make a good decision even without a good decision process
8. Failing to leam from evidence of past outcomes either because you are protecting your ego or because you are tricked by hindsight
9. Assuming that experience will make lessons available automatically
10. Failing to create an organized approach to understanding your own decision process  

That's I got a hindsight to improve my lack in decision making....eventhough there are still many things to learn and do, at least I have a driven factor to do it..... 

Get The Early: Seeing The Future to Compete In The Present

FREE EXCERPT: Get There Early: Seeing the Future to Compete in the Present

It’s a guidebook for what’s going to be, for the future that is really not optional — the VUCA world of Volatility, Uncertainty, Complexity, and Ambiguity. Because it will give you an entirely new angle on how to approach your job as a business leader in this VUCA world. Bob Johansen has created a book that is exceptional in its originality and clarity of expression as well as in its effective blending of theory and practical examples.

But you may well ask: “Can I really do the things described in this book and make a difference in my business?” From personal experience, It can again say resoundingly, YES. We all need a better way to engage with the dilemmas that are increasingly apparent all around us. This book provides that better way.

 

An excerpt from

Get There Early:

Sensing the Future to Compete in the Present

by Bob Johansen

Published by Berrett-Koehler Publishers

The Vroom-Yetton-Jago Decision Model

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 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:
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.

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.
• 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 analyzing 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.

Source : http://www.mindtools.com/pages/article/newTED_91.htm

Decision Making Process In Solving A Problem

 1. What is Decision Making?

Decision-making is an essential aspect of modern management. It is a primary function of management. A manager's major job is sound/rational decision-making. He takes hundreds of decisions consciously and subconsciously. Decision-making is the key part of manager's activities. Decisions are important as they determine both managerial and organizational actions. A decision may be defined as "a course of action which is consciously chosen from among a set of alternatives to achieve a desired result." It represents a well-balanced judgment and a commitment to action.

It is rightly said that the first important function of management is to take decisions on problems and situations. Decision-making pervades all managerial actions. It is a continuous process. Decision-making is an indispensable component of the management process itself.

Means and ends are linked together through decision-making. To decide means to come to some definite conclusion for follow-up action. Decision is a choice from among a set of alternatives. The word 'decision' is derived from the Latin words de ciso which means 'a cutting away or a cutting off or in a practical sense' to come to a conclusion. Decisions are made to achieve goals through suitable follow-up actions. Decision-making is a process by which a decision (course of action) is taken. Decision-making lies embedded in the process of management.

According to Peter Drucker, "Whatever a manager does, he does through decision-making". A manager has to take a decision before acting or before preparing a plan for execution. Moreover, his ability is very often judged by the quality of decisions he takes. Thus, management is always a decision-making process. It is a part of every managerial function. This is because action is not possible unless a firm decision is taken about a business problem or situation.

This clearly suggests that decision-making is necessary in planning, organising, directing, controlling and staffing. For example, in planning alternative plans are prepared to meet different possible situations. Out of such alternative plans, the best one (i.e., plan which most appropriate under the available business environment) is to be selected. Here, the planner has to take correct decision. This suggests that decision-making is the core of planning function. In the same way, decisions are required to be taken while performing other functions of management such as organising, directing, staffing, etc. This suggests the importance of decision-making in the whole process of management.

The effectiveness of management depends on the quality of decision-making. In this sense, management is rightly described as decision-making process. According to R. C. Davis, "management is a decision-making process." Decision-making is an intellectual process which involves selection of one course of action out of many alternatives. Decision-making will be followed by second function of management called planning. The other elements which follow planning are many such as organising, directing, coordinating, controlling and motivating.

Decision-making has priority over planning function. According to Peter Drucker, it is the top management which is responsible for all strategic decisions such as the objectives of the business, capital expenditure decisions as well as such operating decisions as training of manpower and so on. Without such decisions, no action can take place and naturally the resources would remain idle and unproductive. The managerial decisions should be correct to the maximum extent possible. For this, scientific decision-making is essential.

 2. Definitions of Decision-making

1. The Oxford Dictionary defines the term decision-making as "the action of carrying out or carrying into effect".
2. According to Trewatha & Newport, "Decision-making involves the selection of a course of action from among two or more possible alternatives in order to arrive at a solution for a given problem".

3. Characteristics of Decision Making

1. Decision making implies choice: Decision making is choosing from among two or more alternative courses of action. Thus, it is the process of selection of one solution out of many available. For any business problem, alternative solutions are available. Managers have to consider these alternatives and select the best one for actual execution. Here, planners/ decision-makers have to consider the business environment available and select the promising alternative plan to deal with the business problem effectively. It is rightly said that "Decision-making is fundamentally choosing between the alternatives". In decision-making, various alternatives are to be considered critically and the best one is to be selected. Here, the available business environment also needs careful consideration. The alternative selected may be correct or may not be correct. This will be decided in the future, as per the results available from the decision already taken. In short, decision-making is fundamentally a process of choosing between the alternatives (two or more) available. Moreover, in the decision-making process, information is collected; alternative solutions are decided and considered critically in order to find out the best solution among the available. Every problem can be solved by different methods. These are the alternatives and a decision-maker has to select one alternative which he considers as most appropriate. This clearly suggests that decision-making is basically/fundamentally choosing between the alternatives. The alternatives may be two or more. Out of such alternatives, the most suitable is to be selected for actual use. The manager needs capacity to select the best alternative. The benefits of correct decision-making will be available only when the best alternative is selected for actual use.
2. Continuous activity/process: Decision-making is a continuous and dynamic process. It pervades all organizational activity. Managers have to take decisions on various policy and administrative matters. It is a never ending activity in business management.
3. Mental/intellectual activity: Decision-making is a mental as well as intellectual activity/process and requires knowledge, skills, experience and maturity on the part of decision-maker. It is essentially a human activity.
4. Based on reliable information/feedback: Good decisions are always based on reliable information. The quality of decision-making at all levels of the Organisation can be improved with the support of an effective and efficient management information system (MIS).
5. Goal oriented process: Decision-making aims at providing a solution to a given problem/ difficulty before a business enterprise. It is a goal-oriented process and provides solutions to problems faced by a business unit.
6. Means and not the end: Decision-making is a means for solving a problem or for achieving a target/objective and not the end in itself.
7. Relates to specific problem: Decision-making is not identical with problem solving but it has its roots in a problem itself.
8. Time-consuming activity: Decision-making is a time-consuming activity as various aspects need careful consideration before taking final decision. For decision makers, various steps are required to be completed. This makes decision-making a time consuming activity.
9. Needs effective communication: Decision-taken needs to be communicated to all concerned parties for suitable follow-up actions. Decisions taken will remain on paper if they are not communicated to concerned persons. Following actions will not be possible in the absence of effective communication.
10. Pervasive process: Decision-making process is all pervasive. This means managers working at all levels have to take decisions on matters within their jurisdiction.
11. Responsible job: Decision-making is a responsible job as wrong decisions prove to be too costly to the Organisation. Decision-makers should be matured, experienced, knowledgeable and rational in their approach. Decision-making need not be treated as routing and casual activity. It is a delicate and responsible job.

4. Advantages of Decision Making

1. Decision making is the primary function of management: The functions of management starts only when the top-level management takes strategic decisions. Without decisions, actions will not be possible and the resources will not be put to use. Thus decision-making is the primary function of management.
2. Decision-making facilitates the entire management process: Decision-making creates proper background for the first management activity called planning. Planning gives concrete shape to broad decisions about business objectives taken by the top-level management. In addition, decision-making is necessary while conducting other management functions such as organising, staffing, coordinating and communicating.
3. Decision-making is a continuous managerial function: Managers working at all levels will have to take decisions as regards the functions assigned to them. Continuous decision making is a must in the case of all managers/executives. Follow-up actions are not possible unless decisions are taken.
4. Decision-making is essential to face new problems and challenges: Decisions are required to be taken regularly as new problems, difficulties and challenges develop before a business enterprise. This may be due to changes in the external environment. New products may come in the market, new competitors may enter the market and government policies may change. All this leads to change in the environment around the business unit. Such change leads to new problems and new decisions are needed.
5. Decision-making is a delicate and responsible job: Managers have to take quick and correct decisions while discharging their duties. In fact, they are paid for their skill, maturity and capacity of decision-making. Management activities are possible only when suitable decisions are taken. Correct decisions provide opportunities of growth while wrong decisions lead to loss and instability to a business unit.

5. Steps Involved In Decision Making Process

Decision-making involves a number of steps which need to be taken in a logical manner. This is treated as a rational or scientific 'decision-making process' which is lengthy and time consuming. Such lengthy process needs to be followed in order to take rational/scientific/result oriented decisions. Decision-making process prescribes some rules and guidelines as to how a decision should be taken / made. This involves many steps logically arranged. It was Peter Drucker who first strongly advocated the scientific method of decision-making in his world famous book 'The Practice of Management' published in 1955. Drucker recommended the scientific method of decision-making which, according to him, involves the following six steps:

1. Defining / Identifying the managerial problem,
2. Analyzing the problem,
3. Developing alternative solutions,
4. Selecting the best solution out of the available alternatives,
5. Converting the decision into action, and
6. Ensuring feedback for follow-up.

The figure given below suggests the steps in the decision-making process:-

1. Identifying the Problem: Identification of the real problem before a business enterprise is the first step in the process of decision-making. It is rightly said that a problem well-defined is a problem half-solved. Information relevant to the problem should be gathered so that critical analysis of the problem is possible. This is how the problem can be diagnosed. Clear distinction should be made between the problem and the symptoms which may cloud the real issue. In brief, the manager should search the 'critical factor' at work. It is the point at which the choice applies. Similarly, while diagnosing the real problem the manager should consider causes and find out whether they are controllable or uncontrollable.
2. Analyzing the Problem: After defining the problem, the next step in the decision-making process is to analyze the problem in depth. This is necessary to classify the problem in order to know who must take the decision and who must be informed about the decision taken. Here, the following four factors should be kept in mind:
   
   1. Futurity of the decision,
   2. The scope of its impact,
   3. Number of qualitative considerations involved, and
   4. Uniqueness of the decision.
3. Collecting Relevant Data: After defining the problem and analyzing its nature, the next step is to obtain the relevant information/ data about it. There is information flood in the business world due to new developments in the field of information technology. All available information should be utilised fully for analysis of the problem. This brings clarity to all aspects of the problem.
4. Developing Alternative Solutions: After the problem has been defined, diagnosed on the basis of relevant information, the manager has to determine available alternative courses of action that could be used to solve the problem at hand. Only realistic alternatives should be considered. It is equally important to take into account time and cost constraints and psychological barriers that will restrict that number of alternatives. If necessary, group participation techniques may be used while developing alternative solutions as depending on one solution is undesirable.
5. Selecting the Best Solution: After preparing alternative solutions, the next step in the decision-making process is to select an alternative that seems to be most rational for solving the problem. The alternative thus selected must be communicated to those who are likely to be affected by it. Acceptance of the decision by group members is always desirable and useful for its effective implementation.
6. Converting Decision into Action: After the selection of the best decision, the next step is to convert the selected decision into an effective action. Without such action, the decision will remain merely a declaration of good intentions. Here, the manager has to convert 'his decision into 'their decision' through his leadership. For this, the subordinates should be taken in confidence and they should be convinced about the correctness of the decision. Thereafter, the manager has to take follow-up steps for the execution of decision taken.
7. Ensuring Feedback: Feedback is the last step in the decision-making process. Here, the manager has to make built-in arrangements to ensure feedback for continuously testing actual developments against the expectations. It is like checking the effectiveness of follow-up measures. Feedback is possible in the form of organised information, reports and personal observations. Feed back is necessary to decide whether the decision already taken should be continued or be modified in the light of changed conditions.

Every step in the decision-making process is important and needs proper consideration by managers. This facilitates accurate decision-making. Even quantitative techniques such as CPM, PERT/OR, linear programming, etc. are useful for accurate decision-making. Decision-making is important as it facilitates entire management process. Management activities are just not possible without decision-making as it is an integral aspect of management process itself. However, the quality of decision-making should be always superior as faulty/irrational decisions are always dangerous.

Various advantages of decision-making (already explained) are easily 'available when the entire decision-making process is followed properly. Decisions are frequently needed in the management process. However, such decisions should be appropriate, timely and rational. Faulty and hasty decisions are wrong and even dangerous. This clearly suggests that various advantages of decision-making are available only when scientific decisions are taken by following the procedure of decision-making in an appropriate manner.
For accurate/rational decision-making attention should be given to the following points:

1. Identification of a wide range of alternative courses of action i.e., decisions. This provides wide choice for the selection of suitable decision for follow-up actions.
2. A careful consideration of the costs and risks of both positive and negative consequences that could follow from each alternation.
3. Efforts should be made to search for new information relevant to further evaluation of the alternatives. This is necessary as the quality of decision depends on the quality of information used in the decision-making process.
4. Re-examination of the positive and negative effects of all known alternatives before making a final selection.
5. Arrangements should be made for implementing the chosen course of action including contingency plans in the event that various known risks were actually to occur.
6. Efforts should be made to introduce creativity and rationality in the final decision taken.

6. Why Rational and Right Decisions Are Not Possible?

Rational decisions are the best decisions under the available circumstances. All decisions should be rational as such decisions facilitate expansion of business and give more profit, goodwill and prosperity to a business unit. Rationality and decision-making are closely related concepts. Rationality principle is applicable to all types of decisions. All decisions (business, economic, social etc.) should be fair and rational. They should serve as examples over a long period. For such decisions, rational/scientific/balanced approach is essential while making decisions. In the absence of such approach, decisions are likely to be faulty and dangerous to the Organisation and also to all concerned parties.

Rationality in decision-making is possible through human brain which has the ability to learn, think, analyze and relate complex facts and variables while arriving at a decision. A manager has to introduce rationality in his decision-making by using his skills, experience, knowledge and mental abilities.

On some occasions, such rational and right decisions are not taken due to variety of possible reasons. It is also possible that the decision taken may be rational when taken but is treated as wrong/irrational/faulty because' the results available from the decision taken are not as expected/positive/encouraging. Rational decisions may not be possible when the approach of the decision-maker is casual and superficial. He may not be alert, careful and cautious while taking the decisions or he might not have followed the decision-making process in a scientific manner. In brief, all business decisions should be rational as far as possible as such rational decisions offer many benefits/advantages. However, rational decisions may not be taken on certain occasions. According to Herbert A. Simon, human beings are not always rational in the decisional process.

7. Reasons Why Rational and Right Decisions May Not Be Possible?

1. Inadequate information, data and knowledge: For rational decision-making accurate, reliable and complete information about various aspects of the problem under investigation is necessary. The possible future trends can be estimated with the help of such information. This facilitates rational decision-making. However, adequate and reliable information may not be available at the time of decision-making. As a result, the decisions become defective or irrational. Such decision may prove to be faulty in the course of time. This is how the decisions become irrational to certain extent.
2. Uncertain environment: Decisions are taken on the basis of information available about various environmental variables. However, the variables are many and complex in nature. They may be related to political, economic, social and other aspects. It is not possible to study all such variables in depth due to inadequate information/data. This leads to inaccuracy in decision making and the decisions taken are not fully rational.
3. Limited capacity of decision-maker. A decision-maker should be expert, knowledgeable, intelligent and matured. He needs vision and capacity to imagine possible future situation. In the absence of such qualities, the decision-maker may not be able to take rational decisions. Similarly, the decision taken may not be rational if the decision-maker fails to follow all necessary steps required for scientific decision-making. A hasty decision or decision taken without full use of all mental faculties may not be fully rational. Thus, decisions are likely to be less rational if the decision maker lacks capacity to take rational decisions.
4. Personal element in decision-making: Decision-making should be always impartial and also favorable to the Organisation. Decision against Organisation but favorable to decision maker or other employees will be unfair. Such decision will not be rational. Similarly, every decision-maker has his own personal background in the form of personal beliefs, attributes, preferences, likes and dislikes and so on. A decision-maker is expected to keep these elements away while taking management decisions. This may not be possible in the case of all decision-makers and on all occasions. However, decisions are not fully rational when such personal element comes in the picture.
5. A decision cannot be fully independent: Managerial decisions are interlinked and interdependent. A manager has to make adjustments or compromises while making decisions. For example, for reducing price, some compromise with the quality may be necessary. A manager gives more importance to one and less to the other. He takes one decision which is rational at the same time makes some compromise in the other decision. As a result, other decision is not likely to be fully rational. In short, business decisions are interlinked. This brings an element of irrationality in some decisions.

The points noted above suggest why it is not possible to take rational and right decisions on all occasions.

8. Relationship Between Planning and Decision-making

There is close relationship between planning and decision-making. Decision-making has priority over planning function. It is the starting point of the whole management process. In fact, decision-making is a particular type of planning. A decision is a type of plan involving commitment to resources for achieving specific objective. According to Peter Drucker, it is the top management which is responsible for all strategic decisions such as the objectives of the business, capital expenditure decisions as well as operating decisions such as training of manpower and so on. Without management decisions, no action can take place and naturally the resources would remain idle and unproductive. The managerial decisions should be correct to the maximum extent possible. For this, scientific decision-making is essential.
Source : http://kalyan-city.blogspot.com/2010/06/decision-making-process-in-management.html