7 Steps to a Defensible Decision
Good decisions form the basis for good performance in all organisations. In the public sector; however, decision-makers face additional complexity due to the diverse range of stakeholders, responsibilities, and pressures agencies (and programs) encounter.
Taking time to consider and apply a decision-making framework can offer greater confidence to senior stakeholders and improve the defensibility of decisions. This applies for boards, but also for executives, and particularly when the pressure is on to decide quickly. A decision-making framework enables a “more haste, less speed” approach, setting the foundation for improved outcomes under pressure.
The Australian Institute of Company Directors (AICD) recommends seven steps for board decision-making, but the proposed steps are valid and useful in a variety of contexts, including public sector agencies.
Before jumping into the decision-making steps, a quick word on emotions and decision-making. We often think that its best to take emotions out of decision-making and to make decisions “rationally.” The AICD points out that more recent research identifies emotion as important to the decision-making process: our emotions create impetus for decisions and for change. Without emotions, it is harder to make decisions.
Similarly, Lisa Feldman Barrett explains the event of an emotion as part of the brain’s predictive and sense-making processes. The way we feel in a particular situation prepares us for what our brain predicts we need to be ready to do. Being aware of this helps us to harness our emotions and learn from experience, constantly adapting to better predict the world around us and thereby make better decisions.
Being aware of our own tendencies, biases and patterns can help us to understand how to supplement our decision-making process with different perspectives.
Seven steps to a defensible decision:
Identify the decision
This is critical to achieving a good outcome because it frames information discovery, options analysis and the ultimate decision. As ambiguity in a situation increases, the more critical this step becomes, often demanding all our experience and creativity. In these situations, seek feedback to get the best possible decision framing.
Get the facts
Based on the decision at hand, identify the fact base needed to inform the decision. What evidence standards are required in this scenario? Which stakeholders should be consulted? Which policies and legislation apply?
Develop alternatives
Using the decision requirements and the evidence at hand, what are the potential solutions? Which of these are feasible and viable?
Rate the alternatives
Of the feasible and viable solutions, which deliver the best value for money? Which can be implemented efficiently and effectively?
Rate the risks
Consider the risks associated with each decision, both to implement and to sustain. Which alternatives can be implemented in accordance with your agency’s risk framework and appetite?
Make the decision
Assess each alternative based on conformance to decision requirements, likely decision outcomes (public value), risk profile and likely cost of risk management. Consider opportunity costs of not pursuing other alternatives.
Evaluate the decision
Test the decision against the need for the decision. Consider pertinence to the new information collected and any environmental changes that have occurred in the meantime. Are any tweaks required? How can the effectiveness of the decision be measured over time.
Sound decision-making is essential for defensible public sector performance. The guide in this article can assist in the process of decision-making, and is scalable to the urgency and magnitude of the decision at hand
Terrace Services are skilled at assisting with both operational and governance decision-making, with years of experience at senior levels of government and in advisory roles to senior government executives.