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GUEST ARTICLE - Allen Liff
Helping the
Decision-Impaired Board
Is your board decision-impaired? You may
recognize the symptoms:
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A sense that the board is spinning its
wheels and rehashing old issues.
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A lot of heated discussion based on
few facts but lots of opinions.
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A long and protracted discussion that
ends when the board realizes it has lost track of the
original topic.
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The frequent introduction of
“wildcard” issues which were not originally on the
agenda.
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An inability to explain to members why
the board made a certain decision.
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A decision is ostensibly agreed to by
the entire board but in reality not supported by every
board member.
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A nagging feeling that decisions, when
they are finally made, do not represent the best
thinking of the board.
Is it possible for the decision-impaired
board to improve? Take heart for the answer is yes.
First, a little perspective on how to improve board
performance. An article in the May issue of
Association Management magazine entitled, “A
Representative Sampling” (by Katherine Mandusic Finley,
CAE) cites a study on the effectiveness of board
training. The good news is that those boards employing
developmental training improved their performance
significantly and the competencies targeted for
attention showed the most improvement.
With that in mind, let’s look at how to
target a board’s competency in decision-making:
Step 1 – Self-Assessment:
In order to improve, the board will
first need a framework for understanding its overall
strengths and weaknesses in group decision-making. It
needs to answer three basic questions:
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How do individuals in the group prefer
to make decisions, process information and set
priorities? What are respective strengths and
weaknesses of the individuals in the group?
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In what ways do these differences in
individual styles lead to either to conflict or
harmony among the board.
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What is the group’s overall strengths
and weaknesses? Is there a balance of different
decision-making styles or is the group top-heavy in
one area but not another?
What is the best way to assess the
board? There are a number of assessment tools you can
such as the Myers-Briggs Type Indicator (MBTI) and the
Kirton Adaption-Innovation (KAI) tests. Recently, I
have had success using a new tool called the Leadership
Spectrum Profile® (http://www.leadershipspectrum.com).
The profile identifies six types of priorities a person
is likely to favor and how that priority influences his
or her decision-making process:
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Leadership
Spectrum Profile
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Priority |
Actions
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Inventor |
Innovation and survival |
Develop new ideas, products and
services
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Catalyst |
Fast growth |
Gain market share and win customers/new members |
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Developer |
Manage risk and
establish order
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Build infrastructure, create systems and processes
for high performance |
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Performer |
Maximize results |
Improve processes and procedures for effective
resource utilization and
return
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Protector |
Maintain success |
Develop committed workforce, build capabilities, &
support culture/identity |
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Challenger |
Position for the future
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Surface assumptions, practices, and issues; and
create strategic options |
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©
1998-2002. The Leadership Spectrum Profile®. Enterprise Management Ltd. All Rights Reserved
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Here is an example of how a
decision-impaired board made use of the Leadership
Spectrum profile:
We found that all the board members were
challengers or inventors. From the
standpoint of developing strategy, this was a definite
plus, as the association needed to position itself for
future. Its survival was in jeopardy due to financial
difficulties and there was almost desperate need for
need ideas to generate revenue.
From an operational standpoint, however,
the board was very weak and this was reflected in its
chronic inability to make timely and sound decisions.
The board learned it had no individuals who were strong
as developers or performers. As a
consequence, the board paid little attention was paid to
metrics for or processes to improve its performance.
With this realization, it became clear why decisions
were hard to come by for this group. The board’s
response was to say, “Okay, when it comes to issues of
performance and board development, we have to slow down,
take the time to ask the types of questions a
developer or performer might ask. In that way
we can compensate for our weaknesses in those areas.”
To recap, using
the Leadership Spectrum Profile (or another assessment
tool) should provide a framework so the board
understands how to:
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Balance
strategic and operational decisions
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Lead and
implement change
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Develop
credible and constructive communication practices
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Manage
conflict and facilitate creative problem solving
Step Two – Establish Guidelines for
Effective Decision Making:
Once a board understands its strengths
and weaknesses in decision-making, it needs a practical
set of guidelines and processes to help it move forward.
By asking the following set of questions, which
represents the steps to sound decision-making, a board
can establish its own set of guidelines that will lead
to improved performance:
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IS THIS A BOARD PRIORITY?
Is this issue a priority for the
association and for the board? If so, why? Is the board meeting the best venue
for addressing this issue? Or can it be addressed in another venue? |
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WHAT IS THE OBJECTIVE?
What is the goal or objective? What is the board trying to accomplish by making
this decision? Have we clarified the problem or issue? What is the problem that
really needs to be focused on? Does everyone agree we that we have a
well-defined problem statement? |
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WHAT ARE THE FACTS?
What's the situation or
background? Does the board have all the facts it needs to begin the discussion
or should we table the discussion until more information is gathered? |
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WHAT ARE THE DECISION
OPTIONS?
What are all the possible
decision we might make? Which ones are most feasible or on-target? |
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WHAT ARE THE CRITERIA?
Before we begin making a
decision, have we identified and agreed to the criteria we will use to make our
decision?
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WHAT IS THE
DECISION-MAKING PROCESS?
Are we
clear how the group will go about making a final decision? Is it consensus?
Majority vote? Another methodology? |
© 2004 Ronin Marketing
Step Three – Practice!
It is not sufficient to ask the Board to
read an article or provide a 15 minute presentation on
decision-making skills. This rarely makes any difference
in board performance. The fastest, most effective path
to improved decision-making is hands-on training. In
other words, the Board should set aside time so it can
practice – go through the process of applying specific
skills and guidelines so they understand the practical
applications and benefits. I have seen Boards, as a
result of a day of practice, make dramatic improvements.
In conclusion, I would like to reiterate
a point made at the beginning of this article: Those
boards employing developmental training improved their
performance significantly and the competencies targeted
for attention showed the most improvement. If you want
to improve the decision-making capabilities of your
board, you need to invest the time for skills training
and hands-on practice.
Allen Liff is the founder of Ronin Marketing located in Washington, DC. Phone: 202-232-1121.
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SEPTEMBER
2004
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