In a world driven by artificial intelligence (AI), where access to advanced tools is increasingly easy, the dynamics of decision making by business leaders are undergoing a major transformation.
Professor Cheryl Strauss Einhorn, a renowned professor at Columbia Business School and Cornell and author of Problem Solver: Maximising Your Strengths to Make Better Decisions, highlights the importance of asking intelligent questions as part of the decision-making process.
In her article, she highlights this shift and how we can improve our decisions through a thoughtful, question-driven approach. He identifies five main profiles of problem solvers (PSPs)-adventurers, detectives, listeners, thinkers and visionaries-and highlights how each has its own strengths and blind spots. In addition, he introduces the concept of “situationality,” which recognizes the importance of the context in which decisions are made.
It offers a series of thought-provoking tips designed to help readers consider how situationality affects their decisions and how they can adjust their approach to get better results. This concept of “situationality” recognizes that each situation is unique and may require a different approach. Therefore, when making strategic decisions, it is critical to consider where we are, who we are interacting with and what our role is in the situation.
Einhorn leaves some important tips to help in any decision-making process, especially since decisions are made jointly and with a multiplicity of viewpoints:
Define the problem: Identify a negative experience in your life that requires a decision. It may be a situation in which you felt trapped or had communication difficulties.
Assessing the location and team dynamics: Consider where you are and who you interact with. This may include your work environment, whether you work remotely or in a team, and how this influences your decision making.
Consideration of career stage: Think about whether you are at the beginning, middle or end of your career. This may affect your expectations and decision making.
Think about who else is involved in the situation and how your decisions will affect them. Consider whether you are focused only on yourself or whether you take into account the needs and perspectives of others.
Exploring the ownership of the decision: ask yourself who really owns the decision and what the consequences are for you and others involved. This will help you understand the weight of the decision and who else will be affected by it.
Connecting situationality to the problem-solving profile: analyze how your current situation influences your decision-making style. Consider whether you are behaving according to your dominant profile or whether you are adopting a different style due to circumstances.
Exploration of assumptions that have not worked for decision making: Identify any assumptions you have made that may be hindering your ability to make effective decisions. This may include assumptions about how people react or who should make decisions.
Recognizing how your problem-solver profile can help you make more effective decisions: Reflect on how you can use the strengths of your problem-solver profile to address the situation more effectively. Consider how you can apply your natural skills to improve your decision making.
Much has been made of the data-driven approach to decision making, which emphasizes the use of quantitative and qualitative data to inform and inform the decision-making process. By analyzing historical data, market trends, performance metrics and other relevant information, business leaders can make more objective and informed decisions.
Moreover, Einhorn's approach underscores the importance of context and situational nuances in decision making. It reminds us that each situation is unique and may require a different approach, taking into account factors such as interpersonal relationships, team dynamics and individual expectations.
By combining these two approaches, we can create a more complete and robust decision-making model. Data provides a solid foundation for analysis, while taking situationality into account helps us contextualize and interpret this data more accurately and better manage change and its impact. This allows us to make more informed decisions, tailored to the specific needs of each situation, and mitigate the risks associated with unfounded choices.
In short, the data-driven decision approach and Cheryl Strauss Einhorn's perspective on situationality complement each other, providing a comprehensive framework for making effective, well-informed decisions in organizations. Einhorn's thought-provoking tips provide a valuable framework for considering how situationality affects our decisions. From defining the problem to evaluating the perspectives of others involved, these guidelines encourage us to take a more mindful and proactive approach to decision making.
It is essential to recognize that effective decision making goes beyond asking the right questions; it is also necessary to consider how these questions are contextualized and answered. Situationality reminds us that each situation is unique and may require a different approach, taking into account the environment, participants and objectives involved.
By taking a question-driven approach, business leaders can not only explore critical issues and identify innovative solutions, but also foster an organizational culture of curiosity and collaboration. In an ever-evolving business environment, this approach is essential to address the complex and unpredictable challenges that arise in the contemporary world.
By Reynaldo Naves, managing partner of Olivia Brazil.