WHEN running a small mom and pop shop, decision making is usually quick. The owner makes a decision, and everyone on the small team just need to follow. It is a one man show. Or if the spouse is involved in the enterprise, it is a two “man” show.
Hopefully, both know the bounds of his and her authority, responsibilities and roles, and agree to be consistent, to avoid confusing the team with conflicting instructions from them.
As a business grows and authority is given to others, is decision making about first getting a consensus? Doing so sounds democratic, and could get the buy-in of everyone, and make implementation easier as everyone would feel that they are each implementing a decision that “everyone” or “almost everyone” agreed to. Often times, this works.
When ownership of the business is equally shared among various individuals or members of a family, and when most, if not all of them, are involved in running the business, a “majority wins” decision model is usually practiced. Good or bad? It depends.
A lot of factors have to be considered. How competent, knowledgeable, and involved are each of the decision makers? Pride and “internal competition” for power and position could silently creep into the picture. Situations may occur wherein one may vote for or against a plan for the simple reason that it is in opposition to what the other wants. This happens in a number of family owned enterprises.
Irrational and unreasonable decisions are made, or needed decisions are delayed or cannot be arrived at. Squabbles can even resort to legal complexities.
In a book given to me by my brother, Sunny Junior, entitled, “The Greatest Business Decisions of all Time,” wherein great companies like Apple, Ford, IBM, etc. were studied, I learned that great decisions that propel companies to success are usually not consensus based! Conflict is the key!
Great decisions are usually made after a serious debate among senior members of the team.
It helps that the leader is Socratic, asking thought-provoking questions that push people to defend their points of view. He allows debates to rage, in search of better understanding of the situation and how to act or respond to it.
And I quote, “Then, in the end, the leader makes the call. It’s conflict and debate leading to an executive decision.” Seldom is there unanimous agreement. There is always some disagreement. “But after the decision, people would unify behind that decision to make it successful. It all begins with having the right people – those who can debate in search of the best answers but who can then set aside their disagreements and work together for the success of the enterprise.”
According to the book, aside from conflict-based decision making, asking three questions help: What are our core values and our aspirations?
Be internally driven, externally aware! What is happening around us and how is it changing?
Amazon, Lazada, Shopee, AirBnB, Grab, Uber, Food Panda, home-based businesses, online tutorials, the millennial mindset, traffic situation, Internet access, smart phones, Viber, Telegram, etc. have changed the landscape of business tremendously in the last five years.
When we intersect our internal drive and the external factors, what can we distinctively contribute better in the marketplace?
My dearest children, family members, and heads of our organizations, I have just read the first few pages of the book and have been excited to write about it already.
Why? It reinforces what we should be doing and/or are doing right. It reminds us not to be weary about not following everyone’s opinion. There will always be disagreement.
It also tasks me to ask probing questions, to confirm or enhance certain plans. Are they workable or not? If not, why not? How do we overcome the obstacles?
Listening to different viewpoints, including negative ones, should make us cautious and prudent, rather than be demoralized or negatively influenced. It reminds us to be firm, seek and require everyone’s support when the decision has been made.
Somehow the book confirms the concept of “Believe. Trust. Obey. Act.” (BTOA), once the decision has been made.
Finally, there is command responsibility for big and small decisions, for truly, the buck stops with the boss!
Decision-making is a serious matter! Wisdom that comes from above is needed. Pray! Pray! Pray!
James 1:5 says, “But if any of you lack wisdom, you should pray to God, who will give it to you, because God gives generously and graciously to all.”