Transcript Slide 1
Welcome Back!!! Organizational Decision-Making Michael Sacks Associate Professor in the Practice of Organization and Management 4th Annual ‘Back to School’ Day 1 Agenda Individual vs. Organizational decisionmaking Two-part case analysis Common organizational traps Optimizing Organizational Decisions 4th Annual ‘Back to School’ Day 2 Patterns in Individual Decision-Making Think about your colleagues, your boss, and most importantly yourself. What types of patterns (both good and bad) characterize individual decisionmaking? How are organizational decisions the same or different than individual decisions? 4th Annual ‘Back to School’ Day 3 Xerox PARC & the Alto By mid-1970’s, Xerox’s Alto had • • • • • • • Graphical user interface (GUI) operating system Coordinated suite of office application programs Mouse pointing device Disk storage device Ethernet local-area network with e-mail Object-oriented programming Laser printing/WYSIWYG Desktop publishing 4th Annual ‘Back to School’ Day 4 A Discussion Question With such an enormous early advantage in technology, why did Xerox not become the dominant player in personal computing? 4th Annual ‘Back to School’ Day 5 Common Organizational Decision-Making Errors • Strategic Inertia • How many firms on the original Fortune 500 list are still on that list today? • Sioled Thinking • Merketing vs. dales in a down economy • Perverse incentives • P&L purely at the divisional level 4th Annual ‘Back to School’ Day 6 A General Decision Making Framework Define the Problem Decision Criterion Data Needs Collect the Data Analyze the Data “Context Analysis” Implement Decision Assess the Outcome Modify Decision if necessary 4th Annual ‘Back to School’ Day 7 Getting to a Decision Opinions Data Judgment History Experience 4th Annual ‘Back to School’ Day D e c i s i o n 8 Decision-making Takeaways Implications of organizational decision-making: 1. One of the top impediments to effective organizational decisionmaking is failing to agree on the goal for the decision. 2. Insisting on holistic organizational decision-making can maximize each units contribution to the goals of the organization 3. Few decisions are perfect the first time; revisit the outcomes and be careful about their fit with your organizational culture 4th Annual ‘Back to School’ Day 9