Does your actual corporate culture betray it’s stated principles?
Jay Voncannon, CFO at Coorstek, believes implementing a challenge process as an integral part of your decision making process is the key to optimizing your culture.
Establishing a decision making framework (DMF)
A DMF should be a process to help guide decisions that lead to effective action.
It should not be a list of inflexible rules or a substitute for thinking.
Jay warned about some common pitfalls and misapplications to avoid:
- Failing to involve the right people early
- Failing to focus on what matters
- Overworking the details
- Overlooking ‘big picture’ issues
- Assuming one-size-fits-all
A good place to start is by defining the opportunity you’re trying to seize or the problem that you’re trying to solve.
Then, clarifying your objectives and establishing exactly what you are trying to accomplish can help focus your efforts.
Examine the objectives you’ve settled on, then determine their viability and whether any alternatives exist that are beyond the obvious. Throughout the process, ensure that what you’re pursuing is in line with your overarching culture and strategy.
If necessary, run with one of the alternatives once having considered the positives and negatives of each solid option.
Finally, determine those next steps and decide what is required to advance to the next stage. Seek the necessary approvals, communicating early and often throughout the process.
Jay stressed that analysis should stop once its marginal cost equals its marginal benefit in terms of improved decision making. Knowing when this point is reached is not an exact science so a judgement call has to be made.
Challenge process
There are several prerequisites to instilling a successful challenge culture.
First and foremost, companies must value the inherent worth and dignity of every individual working in that organization.
It sounds like a low bar, but it’s probable that you don’t even need to look at the research on employees’ feelings about their employer to know just how negatively impactful a toxic work environment can be.
Communicating a common vision for the company is also critical, however absolute consensus is not required.
When receiving a challenge as part of the decision making process, Jay explained the importance of avoiding defensiveness and encouraging open discussion.
If you’re the one providing the challenge, be courageous and don’t wait to be asked to voice your opinion.
A successful challenge process is not:
- Shredding ideas apart
- Second guessing decisions
- Withholding support for initiatives that didn’t come from your team
- Not involving others in the process
- Speaking up too late in the process
- Postponing making a decision until absolute consensus is reached
A good challenge process is:
- Based on teamwork and trust
- Courageous
- Sought out and encouraged by leadership
- Open to admitting mistakes and exhibiting humility
By combining a robust but flexible decision making framework with a properly encouraged challenge process, culture will be optimized.
An optimized culture will lead to better analysis and decision making, a stronger understanding of alternatives, strengths and weaknesses.
It will also lead to a better understanding of each other, from leadership right through the organization. When everyone feels heard, the whole company benefits.
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