Decision making

Decision making

Introduction to decision making

The fundamental role of any Management Committee or Board is to make decisions for the organisation. The types of decisions Committees or Boards typically make at some point include:

  • Applying for funding
  • Employing staff
  • Making investments
  • Engaging an auditor
  • Approving or varying budgets
  • Setting goals and objectives (strategic planning)
  • Managing complaints

Many Management Committees / Boards are guilty of taking too long to make decisions. While no one is suggesting that you should not satisfy your duty to operate with care and diligence, there is a point at which it becomes clear that the Committee is just struggling to make the “right” decision . This may be because

  • There is not agreement on the decision to make
  • Members are concerned about doing something wrong
  • Some decisions are just hard!

Strategies that can be useful to unstick a stuck process are asking

  • What does the legislation say?
  • What does the Strategic Plan say?
  • What do your funding or other contracts say?
  • What do your policies / procedures say?
  • What do we need in order to be able to make a decision? More information (if so, what?)?

Using a decision tree

One strategy that can be used to assist is to develop and use a Decision Making Tree. You can develop your own questions and have them run in the order that works for you, but you use the tree to work through some key questions that may assist in leading to a clear decision.

Here’s an example:

If the answer to a question (starting from the top) is ‘yes’, move onto the next question. If the answer is ‘no’, the decision is ‘no’.

Does this proposal fit with our organisational mission, vision and values?

Does this proposal provide opportunities for our current client group or community?

Will this proposal benefit the organisation?

Are the risks inherent in this project acceptable?

Do we currently or potentially have the resources / capacity to manage this opportunity efficiently and effectively?

Is the impact on our people (staff, volunteers, etc.) acceptable to the Board / Committee?

Does the proposal align with the guidelines/objectives of our funders/regulators?

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