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Decision Expertise

Decisions drive the future of your enterprise

Researchers estimate that the average adult makes about 35,000 remotely conscious decisions each day. As your level of responsibility increases, so does the multitude of choices you have to make. Each decision potentially carries consequences that will define the future. The quality of those decisions determines whether your future will be bright, or not.

A clear framework to drive decision making from impulsiveness towards balance and reflection is crucial to realize strategic intent. People utilize a combination of decision-making strategies to cope with the sheer volume of decisions that must be made. We often rely on the easiest, simplest, and most comfortable solutions at the expense of more robust and positive outcomes. Too often, we only recognize the cost of poor decisions when paying the price of handling the problems they cause.

A simple structure for making better balanced choices

Making the subjective as objective as possible

By using a consistent framework for evaluating possible alternatives we free ourselves up to focus on the intended benefits without the stress associated with implications of implementation. By first weighing the factors involved, and then using the information to render the best decision at that point in time, yields better results and stronger outcomes.
Unlocking the power of collaboration

When decisions are made without negotiating the conflicting needs and wants of all the members of a team, chaos reigns. Help people work more effectively and commit to the shared responsibility of making decisions that determine the future of your organization.
Leveraging the power of delegation

Senior leaders often struggle with knowing what would be helpful to delegate, how to delegate decisions and not just tasks, and what decisions would serve as learning and growth opportunities for their direct reports. To leverage the intellectual horsepower of your staff you must master the art of delegation.
Tackling the hazards of decision ownership

Much of the conflict around poor decision making in an enterprise arises from lack of clarity about who owns the decision. Accountability drives decision making effectiveness. Being accountable also inspires and enables ownership. Knowing which decision belongs where and to whom will improve the speed.

Overcoming data proliferation while managing personal and team cognitive biases

Decision making in the digital age

There was a time when accessing the Internet from a company computer or a phone was unheard-of. Workers sat in cubicles next to each another, connected to customers via desk phones and talked about their weekends by the water cooler.

The world of remote and hybrid work, and an “always connected” workplace, has upended that paradigm. Additionally, digital transformation has accelerated the speed at which we expect communication and response to a new idea.

The speed of change does not align with how humans are wired to process change

More than ever, decision making requires a collaborative data-driven process around the objectives for the decision and a clearly understood “why” behind the choices made. A balanced decision will garner more respect if it has gone through objective reasoning and is supported by meaningful data.

This is especially true when costs are high or if the best choice is not the most popular.

Success Stories

Challenges

CSR Limited is one of Australia’s leading manufacturing companies with operations in Australia, New Zealand and Asia. CSR’s revenues are over $3 billion AUD a year. Faced with a development project implemented by local government, CSR needed to select land for the plant. This decision was complicated by stakeholders with differing objectives.

$60M

Land acquisition decision expedited

$34K

Consultant fees saved

Results

Using KT Decision Analysis, the response time for making a major decision on a $60 million AUD investment was greatly improved. A few short months after the initial Situation Appraisal, the land acquisition was approved. A peer review of the decision and required corporate approval were also accelerated because the decision was well documented and easily reviewed. Many questions normally asked during due diligence were made transparent by the process.

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Challenges

In just five years, Ricoh Corporation doubled in size by acquiring five companies with offices throughout the U.S., Canada and Latin America. Along with growth came an army of insurance providers, brokers and overlapping insurance plans. Kepner-Tregoe was asked to lead a risk management study team charged with streamlining the overlapping plans.

$1.3M

savings in the first year

$300K

saved the second year

Results

The team used Situation Appraisal (SA) to understand the current insurance coverage and a complex Decision Analysis (DA) to select a broker. By using analytic processes and involving the right people at the right time, the team dramatically surpassed anticipated savings.

$79K

reduction in broker commissions

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Challenges

A freak incident (involving a raccoon, a fire and a transformer) led to a power outage at all 13 hospitals and several service organizations—impacting the care of thousands of patients and affecting thousands of employees. When the power failed, the standard “hot switch” flip to a redundant power source failed for unrelated reasons and the health system was running on generator power. This represented a high-risk, single-point-of-failure, unacceptable situation.

$800K

savings in time and resources

Results

The Decision Analysis was highly successful, power was restored and issues were resolved. KT’s systematic rigor kept the tone objective, reduced volatility and clarified the mission. Using Decision Analysis, BJC Healthcare saved in excess of $800K in hospital time and resources, implemented a major reduction in patient risk, brought objectivity to risk management...and that's not all.

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Decision Expertise

Decisions drive the future of your enterprise

A simple structure for making better balanced choices