Strategic decision-making and solving complex issues are vital to any organization’s ongoing success. This important skill is especially needed in today’s volatile, ever-changing business landscape.
Yet, many organizations are lacking it. A McKinsey Global Survey on decision-making found that just 20% of respondents say their companies are proficient in it. In fact, ineffective decision-making creates a big impact on an organization’s productivity. Survey respondents also reported spending an average of 37% of their time at work making choices—more than half of which was considered an unproductive way to utilize their skills.
To put this into further perspective, what could this mean for managers at a standard Fortune 500 company? Essentially, this could become over 530,000 days of wasted working time and approximately $250 million of lost labor expenses annually. Clearly, a tried and tested strategic decision-making plan that can be used repeatedly is needed for the most efficient use of money, time, and skills.
Enter Mellody Hobson, one of the most eminent and influential leaders in business today. She is president and co-CEO of Ariel Investments, America’s first Black-owned asset management firm, and serves as Chair of the Board of Starbucks Corporation and as a director of JPMorgan Chase. She also previously served as Chair of the Board of DreamWorks Animation and was a long-standing board member of the Estée Lauder Companies.
Mellody is an expert decision-maker. In her new Business Session on MasterClass, you can learn step-by-step how to build your very own decision-making framework. You can apply this plan for any type of decision, big or small, or even as a framework for running an entire business. Below are five principles Mellody always relies on to resolve any kind of issue.
5 Problem Solving Guiding Principles from Mellody Hobson
Put others first.
This is Mellody’s north star for good outcomes. She believes that if you take a people-centric approach and do the right thing for people, you will be rewarded in one way or another. Try taking a human-first, data-second approach. After all, it’s the people who make a business successful.
Seek out co-leadership to resolve issues.
This is not about big titles necessarily. It is about seeking out any people in your company who can help co-create and co-collaborate to find the best possible outcome for your challenges. At any level. This is important, because good ideas can come from anywhere—you never know unless you put your feelers out more widely.
Get advice from your lifelines.
In tough moments, try going out of your own world to get the advice of intelligent people in your life. Consider seeking counsel from trusted advisors who don’t have an agenda other than helping you be as successful as possible. They can give you their best and honest input, while adding a unique perspective or solution you may not have considered before.
Keep in mind that hope is not a plan.
When making a business decision, it’s important to avoid wishful or hopeful thinking. And of course, sitting and just criticizing how bad things are will not help. To have a real plan, there needs to be real rigor that is based on math, facts, and other tangible things that can be pointed to. Then try to proactively solve for it, rather than hope or magical thinking. The strategy also gets down to tactics that allow you to move forward and make real change.
Have conviction in your choices.
Once you make a decision, you must stick to it. You must believe that it is correct and that your outcome can be achieved. Second guessing is not an option. However, you must leave some wiggle room in the case that new information is presented. Still keep room to change your mind. This type of flexibility will inspire other colleagues and teammates to stay on the path with you.
Learn more about Mellody Hobson’s problem-solving expertise and much more in her new Session on Strategic Decision-Making. In this new class, you will dive into pivotal, real-life moments from her career and gain new perspective, analysis, and solutions for how you would handle similar situations. You will be prompted to think strategically and solve complex problems by diving into some of the biggest decisions a high profile executive has had to make during her career. Get ready to rally and test your own leadership limits as you learn to gear-shift toward the light during any company’s darkest hours