Making Difficult Choices

Strategic Decision Making for Product Leadership: Decisions

Across all the stages of strategic visioning, transparent decision making with structured discussions can be leveraged to minimize bias and maximize decision quality. In this section we will cover this common mechanism.

Stage Refinement Decision with Structured Discussion
S1 Parent Goals → Vision Leverage extended leadership team to conduct a mini-delphi exercise to “Decide on a 1-2 year vision”
S2 Vision → Goals Leverage extended leadership team as a nominal group to “Decide on 1-2 year goals”
S3 Goals → Opportunities Leverage SMEs as a nominal group to ideate and “Decide on the best opportunities” for each goal
S4 Opportunities → Bets Leverage team leaders as a nominal group to “Decide on quarterly sub-goals” that make small bets against the context’s uncertain future vision

In the last section, we explored when strategic visioning activity sparks decision-making. We showed how a transparent Decision can be created to record the collaborative process that will follow.

Each decision follows a common workflow:

  • Framing - characterize the type of decision, to drive appropriate decision making approach
  • Open - collect alternatives, criteria, learnings, and make initial recommendations
  • Discussing - actively debating alternatives via dialog and possibly disagreement
  • Ready - dialog is done, driver deliberates
  • Decided - decision is made, commitments are expected, communication underway

Framing

After creating a new Decision, the decision-to-be-made is framed, to steer it towards a best-fit approach. Different Decision Types need different decision making approaches.

We start by characterizing the decision-to-be-made by:

  • Urgency - how time-critical is the need for a decision?
  • Importance - how material to the business is the decision?
  • Reversibility - once committed, can we easily change our minds?

Exercise:

Open

As we open the decision making process, we first want to confirm that a collaborative, deliberative approach is warranted. Start by applying the Speed Test to confirm that there is enough uncertainty to justify this amount of overhead.

Next apply a decision-specific roles and responsibilities framework like RAPID or DACI to help identify who should be invited to the decision making party.

Find the right mix of context leadership, team representation, cross-context stakeholders, and subject matter experts (SMEs) to enrich the dialog.

Exercise:

Discussing

The nature of the collaboration on a decision can vary:

  • Sometimes the driver wants to solicit ideas, options, and alternatives
  • Sometimes the driver wants to get reactions to a recommended option
  • Sometimes the driver wants to get individual opinions anonymously (ie. votes)
  • Sometimes the driver wants to spark a discussion of causal relationships
  • Sometimes the driver wants to collectively explore possible future outcomes

When decision making happens in strategic visioning, we are often trying to understand causal realtionships between the Levers (i.e. alternative options) we could "pull”, their likely results, and the goals we have. These offer different paths into the many potential futures, where some are more preferred than others. Visual presentations like the CDD and outcome trees are effective ways to bring a group to a shared understanding of the possibilities.

Exercise:

When the most viable alternatives are identified, they can be presented back to the group for final discussions in the form of a Multi-Choice Decision Matrix. Use the Beliefs and Tradeoffs for the context to help establish the Criteria for the decision. The Discussing phase of the decision workflow can be brought to a close by soliciting “last words” and “final votes” on the alternative set.

Exercise:

Ready

When the Driver moves the Decision to the Ready state, it signals that discussion and dialog is over. It signals to the Decider that they must weigh the inputs and comments and make a choice.

Exercise:

Decided

Since most decisions navigate through some uncertainty, it is useful to communicate the final choice in the form of a Hypothesis, to support an experimental mindset in the transition to work planning (e.g. as a series of Bets). A good decision architecture will enable consistent communication of the made-decision, and provide a consistent way to get commitment for the decision across key stakeholders.

At this point, stakeholders across the enterprise can access the decision record to drive alignment and confirm commitment around the choice.

Exercise: