Managers have a range of decision making styles. Some use their intuition, others are keen on hard evidence. Some shoot from the hip and ask questions later; others are reflective and slow to make decisions. But there is one style difference that needs highlighting and that is whether managers make decisions on a methodical, sequential basis or whether they prefer to experiment and improvise. Methodical thinkers are common at the top of organizations and their approach to making decisions is effective when the main priority is efficient execution. However, wherever innovation is essential for competitive advantage, a more experimental decision making style is more appropriate.
Methodical Decision Making
Making business decisions methodically means being as close to 100% sure of what you want to do before taking action. At the extreme are perfectionists who will not take a step until they are absolutely sure they have made the right decision. The process for making such decisions is sequential. You look at the facts, examine options, think carefully over what you want to achieve, choose an option and then implement it. Such a structured approach is logical and rational. It works best in simple situations, like deciding where to go on your holidays.
As business has become increasingly complex, this decision making style has become a liability because too much is unknown and fast changing. The actions of customers and competitors are unpredictable. This style of making management decisions has now come to be called the manufacturing mindset, which means deciding what customers want and trying to sell it without input from them. This amounts to deciding in your head, in isolation from the real world. The world of business is too dynamic to make decisions in this way.
Trial and Error Decision Making
The best example of making management decisions on a trial and error basis is when a software company releases a beta version of new software. It is not fully ready for general use, but a small group of users try out the beta version and give the software company feedback on how it is working. As feedback rolls in, the software is repeatedly refined until the beta users are satisfied with it. We all make more decisions based on trial and error than we realize. Any time, you start down a particular track and change course enroute, you are making decisions through improvisation. Most innovation occurs in this manner.
Organizations tend to promote decisive managers, those who know what they are doing. The problem here is that they may be promoting more implementers than innovative managers. To be effective, therefore, organizations need to be sure they get this balance right.
