Who has the D? How clear decision roles enhance organizational performance
- January 01, 2006
Harvard Business Review
The culprit? Ambiguity over who's accountable for which decisions. In one auto manufacturer that was missing milestones for rolling out new models, marketers and product developers each thought they were responsible for deciding new models' standard features and colors. Result? Conflict over who had final say, endless revisiting of decisions—and missed deadlines that led to lost sales.
How to clarify decision accountability? Assign clear roles for the decisions that most affect your firm's performance—such as which markets to enter, where to allocate capital, and how to drive product innovation. Think "RAPID® ": Who should Recommend a course of action on a key decision? Who must agree to a recommendation before it can move forward? Who will perform the actions needed to implement the decision? Whose Input is needed to determine the proposal's feasibility? Who decides—brings the decision to closure and commits the organization to implement it?
When you clarify decision roles, you make the right choices—swiftly and effectively.
Read the full article on Harvard Business Online.