Decision Action Threshold Event

Think | Act

One in a series of Leadership Articles to cause you to think and perhaps to act. Read other articles.

Recently we were archiving some notes from a prior consulting engagement and having thumbed through the mounds of data and reports, that made up the effort, we stumbled across some statistical results that caused us to pause. Have you ever considered how to measure the effectiveness of a business in making and implementing decisions?

The time it takes to implement decisions in any business varies according to many factors. This might include the nature of the decision, the importance of it, the number of people affected and so on. There is no magical lever to pull that will apply a decision immediately. The results of extended decision implementation in this day and age can, of course, be significant.

Measuring thresholds

In order to adequately measure the effectiveness of decision application one must first define it. In that respect we’ll one more time wade into the path of carelessness and suggest our own definition of the Decision Action Threshold Event (DATE);

The measure of time, expressed as a percentage of a full year, between when a decision is made, at the senior corporate levels of a business, and when it gets enacted by the last affected person in the chain of the organization.

The plot

At the start of our assignment the president felt confident that the time to get decisions made, communicated and enacted “was about four to six weeks…”, after our analysis he had to change his opinion.

Michael Shulist

In our work, with this particular client, we were assisting them in their pursuit of a comprehensive business strategy and improving their ability to communicate this strategy to their employees. It seemed their history was checkered with false starts and business plans that collected dust upon shelves. They were looking at ways to change this, get messages out and shorten the communications cycle to all employees. In order to assist them we looked into how decisions had been made in the past and took a couple of seemingly innocent corporate level decisions and followed them to a natural conclusion.

The Facts

What we found was the the DATE was nearly at a 50% level. It took them nearly six months to get decision implemented under normal business processes.

What’s your DATE?

If you look at your company, how effective is it in getting decisions implemented? Can it boast a short DATE or is it a protracted effort? In our next installment in this topic we’ll cover more of what we discovered and how it can be fixed.

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One Comment

  1. Decision Action Threshold Event Part 2 | Shulist Group Inc.:

    [...] You might recall in prior post we discussed the concept of the Decision Action Event Threshold (DATE). Check this out for a quick refresher course. [...]

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