knowledge bite session - mark withers and anna withers - surviving the squeeze - better decision...
TRANSCRIPT
Surviving the SqueezeBetter decision making in times of austerity
Mark Withers & Anna WithersMightywaters Consulting Limited
©2012 mightywaters consulting limited www.mightywaters.co.uk [email protected]
Session Aims
Get you thinking about your challenges within the context of effective decision making
Help you understand inherent biases in decision making
Present a RISK framework to help you surface and explore these biases
Set out a range of interventions that will help you create an environment for more effective decision making
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©2012 mightywaters consulting limited www.mightywaters.co.uk [email protected]
What can you see ?
©2012 mightywaters consulting limited www.mightywaters.co.uk [email protected]
Huge organisational challenges
Reduced income
Increased demand for services
PensionsEmployee
Engagement / Morale
Delivery Models
Demanding targets
High customer expectations
©2012 mightywaters consulting limited www.mightywaters.co.uk [email protected]
Strategic / Tactical Cuts - Where, How and Who?
Efficiency savings - Where and How Radical?
Strategic partnerships - Who and How?
Employee Morale – How to keep people engaged – how to retain talent?
How to deliver more with less?
And lots of them…
©2012 mightywaters consulting limited www.mightywaters.co.uk [email protected]
Research points to inherent bias in decision making
©2012 mightywaters consulting limited www.mightywaters.co.uk [email protected]
How situations are perceived by people determines their subsequent actions
strategic insight often fails to materialise because of limitations in the mental models of strategic leaders
the ability to identify and help others discover their mindsets and mental models, and the capability to change these when appropriate, are “among the most critical capabilities an HR professional can have or acquire”.
Jeffrey Pfeffer, 2005
©2012 mightywaters consulting limited www.mightywaters.co.uk [email protected]
Bias impacts Decisions and creates Risk
DECISIONS
BIAS
RISK
©2012 mightywaters consulting limited www.mightywaters.co.uk [email protected]
Quotes on Risk
©2012 mightywaters consulting limited www.mightywaters.co.uk [email protected]
People risk is a major component - some would say THE major component
– of risk management, irrespective of
organisational type and industry sector
Institute of Risk Management
An unbiased appreciation of uncertainty is a cornerstone of rationality — but it isn’t what organizations want. Extreme
uncertainty can be paralyzing and the admission that one is merely
guessing is especially unacceptable when the stakes are high. Acting on pretended knowledge is often the
preferred approach.Daniel Kahneman
(Nobel Prize Winner, 1990)
A new PEOPLE RISK framework
elationships
nterestshortcutsnowledge
©2012 mightywaters consulting limited www.mightywaters.co.uk [email protected]
Typical biases in decision making
©2012 mightywaters consulting limited www.mightywaters.co.uk [email protected]
Relationships
Inappropriate attachments
Shortcuts
Confirmation biasChampion biasAvailability biasAnchoring
Knowledge
Misleading experiences
Interest
Sunk cost BiasSunflower-managementGroup thinkOver-optimism
R - Relationships
©2012 mightywaters consulting limited www.mightywaters.co.uk [email protected]
• Strong bonds / loyalty with a person or sets of people
• Strong associations with an object or symbol
I - Interests
Personal Gain
Personal Reputation
Personal Power
©2012 mightywaters consulting limited www.mightywaters.co.uk [email protected]
S – Shortcuts
Wrapper• Who presents the
information• How that information is
packaged
AnchorWhat is in the mind before the data is
presented
©2012 mightywaters consulting limited www.mightywaters.co.uk [email protected]
K – Knowledge
• Misapplication of past learning
• Over-valuing experience
©2012 mightywaters consulting limited www.mightywaters.co.uk [email protected]
Using RISK to improve decision makingAwareness
Focus on decision making groups / teams /
governance groups:
• Awareness of biases• Development of a People
RISK mindset
Interventions
Make targeted interventions:
• External facilitation of decision making process
• External review• Pre-mortems• Counterpoints• Leadership & team development
©2012 mightywaters consulting limited www.mightywaters.co.uk [email protected]
Environment
Work to create a culture of mutual accountability:
• Create transparency in decision making processes
• Ensure diversity in decision making team
• Provide psychological safety so that people can speak out
• Bring multiple stakeholder voices into the decision making process
Question time
©2012 mightywaters consulting limited www.mightywaters.co.uk [email protected]
We hope you have taken at least ONE idea from this presentation
©2012 mightywaters consulting limited www.mightywaters.co.uk [email protected]