5 Strategies for Decision Making in Teams

Why Do Decision-Making Strategies Matter?

 

A research report by Bain & Company found that organisations with clear decision-making processes are 53% more likely to outperform their competitors.

Another global study, this time conducted by McKinsey in 2019, found that just 20% of executives believe their organisations excel at decision-making. The same study suggested that those who excel receive, on average, a 20% higher return on their investments.

So, as you can see, these statistics highlight the importance of having defined strategies for making effective decisions in teams.

This article and video is designed to help you do just that.

 

 

Strategy One – Authoritative Decision Making

 

In this scenario, the leader controls the information and makes the decision.

This approach is appropriate when the leader has all the relevant knowledge and data, when time is critical, or when the team is likely to support the decision regardless.

The benefits are speed and efficiency, but the downside is that it lacks participation and group responsibility.

 

Strategy Two – Consultative Decision Making

 

Here, the leader consults, discusses, and gathers information from experts.

The knowledge is pooled, but the final decision remains with the leader.

This method is more participative but can still lack full team support and commitment.

 

Strategy Three – Majority Vote

 

In this approach, the information and decision-making responsibility are shared across the entire team.

This is appropriate when the decision impacts everyone and when everyone has relevant knowledge.

However, there is a risk of not achieving full commitment, especially if the vote is split.

 

Strategy Four – Consensus

 

Consensus involves rigorous debate and discussion, ensuring everyone feels heard.

This method is suitable for important decisions affecting the whole team or organisation.

The benefits are high participation and commitment, but it can be time-consuming and may face challenges if one or two members hold out.

 

Strategy Five – Consensus with Fallback

 

If the team cannot reach a decision within a set time, a fallback strategy, such as a majority vote or authoritative decision-making, is used.

This ensures decisions are made even if consensus cannot be reached.

 

Implementation Tips

 

To effectively use these strategies, be clear at the start about which decision-making strategy you will use. This clarity helps ensure everyone understands the process and the level of support and commitment required.

 

Free PDF Download

 

Want to dive deeper into these strategies and share them with your team or colleagues?

Download my free PDF outlining the five decision-making strategies to help you implement these tactics effectively within your team.

Click here to get the PDF Guide.

 

More on Decision-Making

 

For more tips and tactics on making better decisions, visit the The Leaders Kitbag section of my website here.

 

Photo by Austin Distel on Unsplash