As previously discussed, one of the key skill of a leader is being able to make high quality decisions.
What we have to always take note of is that no one knows everything. That also applies to every leader. This is also why having other people included in decision making is an important technique. This is also why great leaders still have other people in the decision making process.
When we have more people involved in decision making, we have more information, which translates into having a more informed decision. More decision makers also means that we have a better unbiased decision, which of course would help us have more informed decision.
When we have other people involved in decision making, it basically allows us to:
1. Have a more informed decision; more people = more information
2. Have a less biased decision; more people = more perspective
But even though having more people involved in decision making can increase the potential of having a better quality decision, that is not always the case. Leaders must be aware that having also the right set of preparation is still needed to increase the possibility of coming up with a better quality decision in a group setting.
When a group decision making team is unable to maximize or take advantage of additional perspectives in a group, process loss occurs.
Based from the course, there are three different types of process loss.
Composition Problem occurs when we don’t have the right people in the group to make a decision. One scenario that this could happen is when we create for example a decision making committee, the people we usually involve are those that are like us. We compose groups that lack the diversity of information. By having a group with similar perspective, we are unable to utilise the advantage of having other people in a group. Imagine if we have a decision making group and everyone agrees with each other with not much debate or discussion, then that might mean the group is lacking diversity. In this instance, a process loss occurs.
To solve this, we need to select decision making groups for diversity. Try to invite people that might have a different set of thinking. Even those people that would disagree from you. Turns out that those people who disagree with you, you have a more definite chance of learning from them.
Given that we’ve solved the composition problem, another thing we need to consider is the participation problem. Even if we have the right people in the group, but if they will not talk or participate, then we will still experience process loss. We will be able to fully utilise each persons unique ideas and perspectives if they are going to share it.
In a group setting, there are people that would actually talk, but there are also people that would just listen in and not participate, which are called spectators.
A group cannot have a good decision or best possible decision if not all will share what they know.
Participation problems are also driven by the group’s size. The larger the group, though there are more information, there’s a chance that each person will not get a chance to talk. People also get comfortable in not speaking.
But the problem is that when we are uncertain, we are easily influenced by others. To help us remove that uncertainty, we often ask for other people’s advise. But if other people are already talking in a group, your own perspective and ideas would be shaped before you even talk, hence amounting to process loss.
Remember, in a group we want different perspectives. But if even before you talk your perspective has been influenced already, then that results to process loss. If you are the last person to talk, then the information you already have is not unique anymore.
Another thing to note is when in a vertical group. Given this situation, let the people with lower status first before the others because they are more likely to be influenced.
To summarize, it is more often that not better to create a decision by including other people in the process. But you need to understand that having a group decision is always better. You have to do some planning and implementation to be able to fully utilise the knowledge and skills of the group.