Metrics: How effective is your decision making?

Interesting cut at measuring decision making effectiveness from Bain.

Bain says that:

One thing that sets great companies apart is the ability to make high-quality decisions.

But it isn’t just decision quality—the top performers also make those decisions quickly and execute them effectively. And they don’t spend too much or too little effort in the process.

 

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Source: Bain Decide & Deliver

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In other words, evaluate decision making along 4 dimensions:

 

–  Quality: How often do you choose the right course of action?

–  Speed: How quickly are you able to decide?

–  Yield: How often do you actually execute the decision as intended?

–  Effort: How much time, money and mental energy do you put into decision making & execution?

Think of the first 3 factors – Quality, Speed and Yield – as multiplicative … that is, a low score on any of the 3 brings down the entire composite measure.

Offset those plusses by subtracting out the effort and, bingo, an overall evaluative criteria for decision making effectiveness.

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