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Wednesday, August 29, 2012

Gillian Stamp on Effective Decision-Making

#orgintelligence I found an interesting chart on Gillian Stamp's blog.

Effective Decision-Making

The chart illustrates two observations
  • "Organizational well-being depends on the interplay between challenges and decision-making capabilities."
  • "Where challenges exceed capabilities, financial and human costs rise; where capabilities exceed challenges, resources are wasted."
Source: The Individual, the Organisation and the Path to Mutual Appreciation (dated 2004)

Stamp sees decision-making primarily as an individual activity, and seeks to understand the conditions for effective decision-making by individuals within organizations. She is particularly concerned about levels of individual stress and anxiety caused by a mismatch betwen individual capability and individual responsibility, and advocates a process she calls Career Path Appreciation to improve the alignment between capability and responsibility over the course of an individual's career.

Similar thinking could be applied to the collective decision-making capability of groups, teams and whole organizations. The collective capabilities for decision-making need to match the scale of the challenges facing the organization, and we might reasonably expect some symptoms of anxiety to manifest themselves in organizations that are under-endowed or over-endowed with organizational intelligence. (For a detailed account of organizational anxiety and its symptoms, see Larry Hirschhorn's Workplace Within.)

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