Several years ago a group of professional sales people in the commercial air conditioning industry asked themselves how purchasing decisions in large organizations get made.  They reasoned that if they knew how it was done, they could develop a sales process that would get them to the decision maker faster.  They also thought that once they got to the right person, they would know what to say and do to get the business.  So far, so good.  They polled above-the-power-line managers and executives in large hotels and asked the Engineering VPs, Operations Managers, General Managers and CFOs who would make the decision to purchase a high priced cooling system.  To their surprise, everyone they polled said that they were responsible for the decision.  And furthermore, each of them described a totally different method for making the decision.

Sound strange?

Every since I read this article, I’ve begun doing my own research.  I work with both large and small businesses in the U.S. and overseas.  During my initial engagement interview, I frequently say, “Let’s assume that you become convinced that it would be to your benefit for the two of us to work together and you decided you want to do business with me.  How would you go about making that decision?”  Nine out of ten times I get the “deer in headlights” look and an answer that goes something like, “Well, I guess I’d just decide to go ahead.”

So, what’s the big deal?

On the surface level, it doesn’t seem too terrible to make decisions depending on the circumstance, case by case, or to decide how to decide when the time comes.  As an organizational practice, though, that approach tends to create fear and paralysis in the long term.  Eventually, someone will make a “mistake” in the eyes of the boss or the peer group, and the person who made the decision will be called upon to defend himself and the decision from the blame others will heap upon him.  Often, others will be “surprised” to hear a decision was made without their input and will take it upon themselves to make their point AGAINST yours, even if it’s just to be heard.  If you’re in the situation alone, you just might second-guess yourself into indecision, hasty, or prolonged decision-making cycles, if you don’t have a process. 

And by saying that, I’m not suggesting that all decisions – or even the big ones - should be made by committee or by consensus.  What I am saying, is that no matter how big your company is – and even if it’s a small company or a family – it’s a worthwhile exercise to bring up the topic and decide how you’re going to decide on issues that involve your well-being and your relationship with others. 

And what do I get from that?

Imagine that you own a family-run business and the time comes to purchase a new computer system.  The tendency is to ask for several ideas and put several quotations on the table that come from each person’s personal experience.  Jane likes one system because she worked with it at the company she was at before, and it worked great.  (She can get you the catalogs.)  John, on the other hand, has a friend that sells another system and swears by it – besides, you’ll get fast and courteous service.  Peter doesn’t have the slightest notion of what a new computer system will be used for, but he’s an early adopter and wants the latest and greatest techno hit!  By the time you’ve heard everyone’s opinion, you’re more confused than ever and each of the people you talked to believes that his or her opinion will be taken into account in making the decision….you asked, didn’t you? 

If you start by telling people that you’re going to ask for their opinions on the new computer system, you’ll take their opinions into account, but that YOU will be making the decision based on functionality, price and payment conditions, there’s no doubt who’s in charge.  People can then participate by asking questions about how you established the criteria and can offer their input, but they know upfront how the decision will be made.

Types of decision-making

There are several ways to make a decision in an organization, including by command, by consultation, by voting, and by consensus. No single approach will work for all situations.  I’ve listed them in order from top down to very participative.  Each type has a specific use, benefits and downsides.  Just remember, to decide HOW you’re going to decide up front to eliminate stress and strife.