Deciding not to decide leads to organisational paralysis

This may sound ridiculous to many executives but it does happen in several ineffective organisations. It is a management waste that must be eliminated.

The question is why it is so difficult for management to get things done so that business can move forward. This type of issue is likely to take a long time to get resolved unless some drastic changes are made. Below are some possible reasons for such circumstances.

Lack of sufficient information

Some prolonged issues lack good analysis to support management in the decision-making process. For example, it is difficult to make decisions on whether the company should expand the business with more distribution channels. Proper studies and surveys need to be done without predetermined decisions in mind.

Lack of determination.

Decision-makers may try to buy time when they face a dilemma. Those authorised to decide on difficult issues must possess the necessary qualities to make effective decisions. Failing to adopt a problem-solving approach can jeopardise the performance of the business as a whole.

Lack of clear roles and responsibilities

In a difficult situation where a few decision-makers are involved, the situation can be prolonged. When more than one party can suggest a decision, a consensus needs to be sought. Finally the whole team may end up with an impasse. Conflicts of interest can be part of the problem in group decisions.

Lack of effective execution

After a thorough planning session, the action plan is laid out clearly. However, unexpected obstacles can happen during the activation of a plan that hinders responsible persons from getting things done. Without a proper monitoring process, businesses may find they are not on top of the issue and cannot really get it done in an efficient manner.

Decision-making on a high-impact issue can be tough. For example, a decision relating to a large number of workers in a thousand-employee manufacturing company requires a thoughtful process before it can be made. The financial impact to the company resulting from a decision on providing additional benefits to employees can be so significant to the bottom line that sometimes no one wants to make a final decision.

However, in order to move the organisation towards success, it is critical to identify unresolved issues and focus on them until they are eliminated. No matter how difficult the problems seem to be, the responsible managers have to perform their duties without fear of personal consequences.

A buying-time approach is often used by non-productive decision-makers. This strategy is advised even by some professional consultants when dealing with issues such as taxation with government authorities. Timely actions by responsible managers are important because the cost of delays can be huge and damaging to the overall business outlook.

To avoid jeopardising the company’s progress and overall performance, foot-dragging on important decisions should be eliminated. Encouragement to do so should be voiced at all levels within the organisation so that the working life will be a lot easier for everyone.

Dr Yanyong Thammatucharee is head of international finance and operations at Central Marketing Group. He can be reached at [email protected].