Original article by Decision Free Solutions
Decisions are conclusions or resolutions reached after consideration (the Oxford dictionary definition of ‘decision’). When something needs to be considered it means it is not transparent. Create transparency and what follows are not decisions but ‘the logical next step’. When something is transparent you don’t have to think. Transparency allows decisions to be replaced by approvals.
In goede tijden is het eenvoudiger om goede marges te maken. In slechte tijden is je enkel verlaten op goede kwaliteit een uitdaging. Maar het simpelweg het mantra “kosten besparen” hanteren leidt tot een lagere kwaliteit en uiteindelijk kleinere marges. Het implementeren van DFS leidt tot een betere benutting van de beschikbare expertise, een verbetering van de kwaliteit, en dus uiteindelijk ook tot lagere kosten. Dit is hoe expert-organisaties de competitie voorblijven, en hun marges op peil houden.
In every leadership-role the aim is to create the conditions to achieve the aims against minimal risk. The needed combination of experience and skills is always different. Simple observations help to identify the right person.
In every organisation there are both identified and unidentified risks. Unidentified risks occur e.g. when aims are not clearly understood, when it is unclear whether the right expertise is available, or used appropriately. All of which results in decision making. To manage identified risks is straightforward, to minimise risk you must avoid decision making. Which is what an expert does. But what does it take to become an expert?
In good times it may be relatively easy to make profits. In bad times relying on quality alone can be challenging. But the approach of “cutting cost” will affect the quality of your solution, and margins will get affected. Implementing DFS improves the utilisation of available expertise, improving quality and (thus) bringing cost down. This is how expert organisations stay ahead of competition, and retain healthy margins.
That decisions increase risk follows from the dictionary definition and use of logic. Few experience decisions in this way, for various obvious reasons. Many unsubstantiated choices are made based on experience or are educated guesses. We get a lot of decisions right. When the risk does occur, usually much later, we often fail to make the link with the decision. What is more, making decisions often makes us feel good. But the risk is still for real.