Leadership & decisions in digitization: The 8-point list of no-gos

In digital times and a complex one World future viability depends on quick and at the same time good decisions. They are the prerequisite for that Success. For what reason Company in terms of decision-making culture can no longer continue as before, this article shows.

New business hours also need a new culture of decision-making

Decision makers high up in the organization were common in times of standard processes and continuity. In a complex environment, on the other hand, they become a bottleneck Organization. Advance, individualized services and high speed are only feasible where between decision and Implementation as little time as possible passes. A new era also needs a new decision-making culture. Today's understanding of leadership is no longer about making decisions, but about

• to make shared decisions,
• shift operating decisions to the teams.

Many companies are still a long way from both. Here is an example: Purchases of 100 euros or more need this Company the signature of the next higher supervisor. A form has to be filled out for this. In addition, only listed parts may be purchased, although much more suitable ones would be much cheaper on the web - and can be ordered with one click. To make matters worse, he is Manager two weeks on vacation, after that his work piles up. When the green light finally comes, that's it Customer, for whose order this part was necessary, gone. He couldn't wait any longer. Next to the Costs for the internal process handling amounts to the lost Turnover to 10.000 euros. The normal madness in autocratic companies.

Shift operational decisions upwards? Tedious, expensive, dangerous

The further a decision is shifted "upwards", the more likely it is that people will be sitting there who have no idea about the subject. Here's another example: In a management meeting, the "Head of Legal" presents a legal matter for a decision. But the heads of purchasing, production, Marketing, sales, etc. lacks any legal expertise. An expert opinion is required for security. That makes decision-making processes tedious and expensive. Or, just as bad as usual: According to the motto "If I help you, then you will help me", alliances of convenience are forged that pursue ego interests but do not serve the cause.

"It doesn't matter Senseto hire smart people and then tell them what to do. We hire bright people to tell us what we can do.” Steve Jobs said this. Many companies are still a long way from thinking like this. First they want the best Employees and then they are guided as if they could not make their own decisions.

Managers do not have to be able to do everything

Executives must know and be familiar with many things, but not be able to do everything. Decisions "by virtue of office" far off the mark very often ignore the reality of life. And that's how it comes with customers also to: regimented, tough, uninspired, run-of-the-mill. Apart from the cases where legal regulations make it necessary: ​​why does it need the signature of one or two bosses even for the smallest of occasions?

Of course, the big strategic decisions belong in the hands of management, but it's different with operational decisions. The professional ones Competencies are today mainly with the specialists in the Team. In order for your projects to succeed, you should make the necessary decisions on your own. “Bringing competencies and responsibility together” is what this principle is called.

Why traditional decision-makers do not work anymore

Shifting operational decisions "up" is as if the coach had to shoot the penalty. And that's what stands in the way of success. Because:

1. In a volatile economic world in which everything is constantly changing, there are many more decisions to be made than before. Managers are faced with such a flood of decision-making processes that they cannot be mastered even with the greatest effort. >>> Ergo: Everything takes too long.
2. In a complex environment in which the parameters are constantly changing, decisions have to be made whose implications can no longer be assessed alone. In addition, it takes longer and longer to obtain adequate information. >>> Ergo: Wrong decisions are made. Or they are late.
3. Where decision-making power is decisive for a manager, decisions, even if necessary, must not be constantly withdrawn or revised, because that would be interpreted as a weakness. >>> Ergo: decisions that are no longer appropriate are held up for far too long.
4. Bad or wrong decisions are the first to be noticed by employees who are close to the customer. However, since there are hierarchical dependencies and conflicts of interest (salary, promotion, vacation request), such information does not get to the top. >>> Ergo: Wrong things persist for a long time.
5. New ideas that the market urgently needs (and that employees have all the time) are not carried to the top. Or the boss blocks them, concealing his true motives. >>> Ergo: Innovations do not take place.
6. New ideas are filtered: the budget situation does not allow them, they are “too big”, they “don't fit”, they could cost the well-being of the management team, they are politically unenforceable, they fail at departmental boundaries. >>> Ergo: The wrong innovations are coming onto the market.
7. In a classic departmental organization, a manager is hardly interested in optimizing anything other than their own area. Because it has bonus department goals that make supporting other areas disadvantageous. >>> Ergo: One pursues ego goals instead of what would be good for the entire organization.
8. Decision-making backlog leads to more and more operational rush. If you are caught up in day-to-day business, strategic tasks can quickly fall by the wayside. In addition, decisions take so long that they are already out of date when they are finally made. >>> Ergo: The company's future is at stake.

Conclusion: The way out of the dilemma

So there is a lot against decisions from above in operational matters. And there is a way out of this dilemma: interdisciplinary, self-organizing teams. Then most of the decisions are made exactly where they belong: where the professionals sit, where you are very close to the customer, and where, with the slightest hint of mistakes, you can follow up very quickly.

Almost all operative questions can answer a team better and above all faster than a manager far away from the shot. Anyone who has the ear constantly on the market, also has a good sense of what the next big thing could be.

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