Decision Making - Competency
Definition: Competence in decision making is the ability to confidently and decisively decide on a course of action after critically analyzing information, parameters and constraints. Informed decisions come from gathering information and viewing the choice from different perspectives. High quality decision making requires flexibility and openness as well as a careful evaluation of the costs and benefits.
360-Degree Feedback Surveys Measuring Decision Making:
Survey 1 (4-point scale; Competency Comments)
Survey 2 (4-point scale; Competency Comments)
Survey 3 (5-point scale; Competency Comments)
Survey 4 (5-point scale; radio buttons)
Survey 5 (4-point scale; words)
Survey 6 (4-point scale; words)
Survey 7 (5-point scale; competency comments; N/A)
Survey 8 (3-point scale; Agree/Disagree words; N/A)
Survey 9 (3-point scale; Strength/Development; N/A)
Survey 10 (Comment boxes only)
Survey 11 (Single rating per competency)
Survey 12 (Slide-bar scale)
Survey 13 (4-point scale; numbers; floating anchors)
Survey 14 (4-point scale; N/A)
What is Decision Making?
Decision-making embodies the capacity to confidently identify and pursue an optimal course of action after analyzing relevant information, parameters, and constraints. It involves critically evaluating the situation, considering multiple variables, and synthesizing the findings into a coherent conclusion. It is not merely about making choices but about making well-reasoned and impactful decisions that reflect a deep understanding of the context and the potential implications.
Informed decision-making stems from the ability to gather and integrate diverse perspectives, ensuring that choices are not made in isolation. By seeking input from various sources and considering different viewpoints, decision-makers can identify nuances, address potential blind spots, and arrive at more balanced conclusions.
High-quality decision-making demands both flexibility and rigor, as it balances adaptability with a systematic evaluation of costs, benefits, and potential trade-offs. A careful weighing of pros and cons ensures that decisions are pragmatic and sustainable. More than just the act of making a choice, decision-making reflects the capacity to navigate complexity, exercise sound judgment, and align decisions with long-term goals and values. Why is Decision-Making Important?
Decision-making directly impacts an organization's ability to adapt, grow, and achieve its objectives. Businesses operate in dynamic and complex environments where leaders and teams must constantly navigate uncertainties, competitive pressures, and shifting market demands. Effective decision-making ensures that resources are allocated wisely, strategies are aligned with both short-term priorities and long-term goals, and risks are minimized. Without this competency, businesses risk stagnation, inefficiency, and missed opportunities, which can be detrimental in an ever-evolving marketplace.
Decision-making fosters innovation, collaboration, and resilience within an organization. Leaders who demonstrate flexibility and openness inspire confidence among their teams, creating a culture of trust and shared responsibility. Informed decisions that incorporate diverse perspectives and evidence-based reasoning are more likely to gain buy-in from stakeholders and drive sustainable outcomes. This not only enhances the company's ability to solve problems and seize opportunities but also strengthens its reputation and competitive edge in the industry. What are key aspects of Decision Making?
- Confidence
- Decisiveness
- Analytical
- Critical Thinking
- Decision Quality
- Goals
- Collaboration
- Forward-Thinking
- Self-Awareness
- Understanding Constraints
- Flexibility
- Costs and Benefits
How can I improve my Decision Making?
- Information Gathering: Actively gather diverse perspectives by consulting experts and incorporating input from various stakeholders.
- Analysis: Leverage data and analytics to ensure decisions are evidence-based and well-informed.
- Critical Thinking: Develop critical thinking skills to evaluate information objectively, identify biases, and anticipate outcomes.
- Build Resilience: Practice scenario analysis and decision modeling to prepare for uncertainties and assess potential consequences.
- Self-Awareness: Foster emotional intelligence and self-awareness to stay composed under pressure and make balanced decisions.
- Continual Improvement: Reflect on past decisionsâboth successes and mistakesâto identify patterns and continuously improve judgment.
- Professional Development: Participate in leadership training, decision-making workshops, or other professional development opportunities.
- Flexibility: Cultivate flexibility and openness to reassess assumptions and adapt to new information or changing circumstances.
What are the benefits of Decision-Making?
Good decision-making significantly enhances a business' ability to operate effectively and achieve long-term success.
- Improved Efficiency: Sound decisions ensure optimal allocation of resources, reducing waste and maximizing productivity.
- Risk Mitigation: Thoughtful decision-making helps identify potential risks and implement strategies to minimize them, safeguarding the business from unnecessary setbacks.
- Enhanced Innovation: Encouraging informed and flexible decision-making fosters creative problem-solving and supports the development of innovative products or services.
- Increased Employee Engagement: Transparent and well-communicated decisions build trust among employees, promoting a sense of inclusion and shared purpose.
- Stronger Stakeholder Relationships: Good decisions that consider the needs of customers, partners, and investors enhance reputation and foster loyalty.
- Strategic Growth: Effective decision-making aligns business strategies with market demands and long-term goals, driving sustainable growth and competitiveness.
- Adaptability to Change: Businesses with strong decision-making practices are better equipped to respond to changes in the market, economy, or industry landscape.
By prioritizing high-quality decision-making, a business can position itself for resilience, adaptability, and sustained success in an ever-evolving environment. What questions could you consider for including on a 360-degree feedback assessment regarding Decision Making?
The questionnaire items below will measure competence in Decision Making. These questions are grouped into different facets of feedback. When creating a 360-degree or other performance assessment, try to select one or two items from each group. 360-Feedback questions that measure Decision Making
ConfidentConfidence is the belief in one's own ability to make informed and effective decisions. It stems from knowledge, experience, and trust in one's judgment.
A confident decision-maker doesn't hesitate or second-guess, knowing they've gathered the right information. Confidence ensures decisions are made based on knowledge and logic, not fear.
- Comes across as confident, decisive, and resilient
- Supports, encourages or helps others to be sure about the decisions they are making.
- Is confident in the decisions they make.
- Acts confidently in the absence of guidance.
- Is firm in their decision and not easily influenced by the whims of others.
- Is confident in their actions.
- Very intent in their decisions.
- Remains calm when making important or difficult decisions.
DecisivenessDecisiveness is the ability to choose and act quickly and efficiently. It focuses on commitment-once a decision is made, there's no unnecessary delay or hesitation.
A decisive person may still experience uncertainty, but they move forward without paralysis. Decisiveness ensures decisions are acted upon efficiently, avoiding delays.
- Is able to make decisions quickly.
- Makes decisions independently (without having to be told what or how).
- Is assigned the difficult decisions that need to be made.
- Focuses attention on treating the causes of problems rather than simply addressing the symptoms
- Takes decisive action to address problems, following up with relevant team members and coaching them on how to improve
- Responds quickly to tough "people issues" when dealing with internal or external customers
- Takes charge when in charge.
- Makes effective decisions autonomously.
- Is not afraid to take risks that may yield significant results.
- Remains decisive after discovering a mistake.
AnalyticalBreaking Down & Examining Data. Analytical thinking involves structured, systematic analysis of data, facts, and patterns to arrive at logical conclusions. It relies on quantitative reasoning, comparisons, and breaking down complex problems into smaller parts. Analytical thinking helps structure and interpret factual data.
Analytical Thinking is about systematic data examination-dissecting information step by step. Detail-oriented, logical, data-driven, focused on objective information.
- Breaks complex issues into manageable parts and organizes them in a systematic way before making decisions
- Regularly evaluates information before making important decisions.
- Evaluates information before making a final decision.
- Carefully evaluates information before making an important decision.
- Assesses the Pros- and Cons- before making a decision.
- Balances analysis with decisiveness in order to meet deadlines
- Determines where actual results differ from desired results and makes necessary corrections
- Makes logical assumptions in the absence of facts.
Critical ThinkingCritical thinking involves questioning, evaluating, and challenging information to reach well-reasoned judgments. It requires considering multiple viewpoints, identifying biases, and assessing the validity of claims before deciding. Critical thinking ensures decisions account for biases, ethics, and broader perspectives.
Critical Thinking is about evaluating ideas and questioning assumptions-looking beyond the surface-level analysis. Open-minded, skeptical, adaptable, concerned with reasoning and implications.
- Combines and makes sense of contradictory pieces of information.
- Effectively chooses appropriate courses of action.
- Examines relevant factors needed to make a decision.
- Uses reasonable assumptions and logic to decide between alternate courses of action
- Skillfully integrates diverse and opposing information sources.
- Is able to decline bad ideas to avoid making poor decisions.
- Relates and compares information from different sources to identify possible cause-and-effect relationships.
- Improvises within supervisor's intent; handles a fluid environment.
- Uncovers critical issues to use as a guide in both making decisions and taking advantage of opportunities.
- Defers decisions upwards only when necessary and appropriate
- Makes effective, practical decisions based on knowledge, experience, and judgment.
Decision QualityEnsuring the Best Possible Outcome: Decision Quality is about the overall effectiveness and soundness of a decision-how well it solves the problem and achieves desired results. It involves assessing the rationale, risks, benefits, and long-term impact to ensure optimal decision-making. Decision Quality is choosing the best possible decision for long-term success, assessing how well the choice aligns with strategic goals.
Strategic thinking, risk analysis, evaluation of consequences, ensuring sound judgment. High-quality decisions require both strategic evaluation and informed data gathering.
- Exercises good judgment by making sound and informed decisions.
- Makes good decisions for the department.
- Employs sound judgment and logical reasoning.
- Makes good decisions even under conditions of uncertainty.
- Makes sound and timely decisions.
- Makes decisions that positively impact team/departmental performance
- Makes sound and timely decisions under pressure
Goals and ObjectivesGoals provide long-term direction and objectives outline the steps to achieve them. Goals and objectives provide the structured roadmap for action.
This is aided by setting clear, measurable, and actionable targets that guide decisions.
Structured, results-oriented, focused on benchmarks and milestones. Goals and Objectives define what needs to be achieved-they focus on specific, measurable targets.
- Does not lose sight of the big picture when making decisions
- Makes decisions that support the department's goals and objectives.
- Decides which long-term goals should be met.
- Remains focused on the immediate goal when making decisions.
- Maintains focus on the "big picture" when making decisions.
- Stays focused on the main objective when making decisions.
- Decides which short- and long-term goals should be created.
Informed DecisionsGathering and Using Relevant Information: Making Informed Decisions emphasizes using data, evidence, and multiple perspectives to support a choice before committing to it. It involves collecting reliable information, reviewing alternatives, and considering different viewpoints to ensure the decision is well-supported. Making Informed Decisions ensures the decision is based on strong evidence, gathering and analyzing information effectively.
Research, data analysis, weighing options, considering diverse input. Making informed decisions helps ensure decision quality-but quality also depends on judgment, foresight, and adaptability beyond just having facts.
- Asks for additional information when making critical decisions.
- Systematically gathers, analyzes, and interprets information from a variety of sources
- Gathers information before making a decision.
- Makes effective, practical decisions based on factual information.
- Understands the issues, problems, and potential solutions.
- Gathers and analyzes relevant information about changing situations to recognize and define emerging problems.
- Keeps informed about developments and policy changes inside and outside the organization.
- Makes decisions that are based on available facts, existing constraints, and probable outcomes.
- Knows how to obtain accurate and up-to-date information about the situation or problem.
- Is well-versed in Company's reports and uses them to make effective business decisions
- Helps the Supervisor/team make effective business decisions by ensuring the correctness of Company's reports/resources
Includes OthersActively Engaging People in the Decision-Making Process: Including others involves bringing relevant stakeholders into the conversation, ensuring participation and contribution. Prioritizes teamwork, communication, and collective problem-solving. Including others strengthens team collaboration and encourages shared accountability.
Collaborative, inclusive, fosters shared ownership of decisions. "Includes Others" is about who participates-actively involving people in the decision-making process.
- Seeks input from key people who should be involved in, or will be affected by, decisions
- Coaches team members individually when "poor" decisions are made; helps them see what could have been done differently
- Facilitates meetings with others to try to consider alternative courses of action.
- Coaches team members individually when "incorrect" decisions are made; helps them see what could have been done differently
- Encourages team to provide input on branch decisions when appropriate
- Develops and shares effective decision-making practices and tools to further develop the team
- Involves others in decisions and keep them informed of consequences that affect them.
- Trains/coaches others on how to make effective decisions
- Includes stakeholders in the decision-making process as necessary.
- Coaches team on decision-making, especially from a multiple-site-management perspective
- Solicits feedback from others on the quality of his/her decision-making
Forward ThinkingAnticipating Future Challenges & Opportunities: Forward Thinking considers long-term consequences, trends, and innovations to ensure adaptability. This involves proactive planning, scenario analysis, and staying ahead of industry shifts. Forward thinking ensures decisions remain relevant and evolve with changing circumstances.
Visionary, strategic, adaptable, focused on sustainability and evolution. Forward Thinking focuses on how to prepare for the future, ensuring decisions are sustainable and adaptable.
- Examines for patterns in data to help predict future possibilities.
- Considers the impact and implications of decisions on others and on situations.
- Considers contingencies and their consequences.
- Anticipates needs for action.
- Evaluates short and long term consequences when making decisions.
- Evaluates the effectiveness of decisions and uses this information to guide future decisions
- Prepares for potential problems and opportunities in working toward desired goals.
Self-awareness
- Learns from previous bad decisions and rarely repeats them.
- Is able to learn from mistakes.
- Accepts the consequences of decisions made.
- Aware of his/her own skills and abilities.
- Effectively prioritizes and organizes themselves and their workload.
- Learns from the consequences of decisions made.
Different PerspectivesConsidering Varied Viewpoints and Approaches: Different Perspectives involves evaluating diverse viewpoints, experiences, and insights to make well-rounded decisions. Encourages critical thinking, cognitive diversity, and broader analysis before making a choice.
Open-minded, adaptable, values diversity of thought. "Different Perspectives" is about what viewpoints are considered-ensuring diverse insights shape the decision.
- Views the issues from multiple perspectives before making a decision.
- Views the long and short-term impact of decisions.
- Considers the ethical implications of decisions.
- Understands how different perspectives can help make better informed decisions.
- Uses data from different sources to confirm information.
Creativity
- Applies creative reasoning in making decisions.
- Recognizes and generates innovative solutions.
- Is creative about the decisions they make.
- Makes decisions based on novel interpretations of the facts.
- Makes creative decisions.
- Formulates imaginative decisions.
Parameters and Constraints
- Identifies parameters impacting the decision.
- Outlines the parameters influencing the decision making process.
- Defines parameters that will impact the decision making process.
- Determines constraints that may impact what decisions are acceptable.
- Defines what constraints must be met for the decision making process.
Flexibility and Openness
- Is open to listening to others who may have different ideas.
- Open to the suggestions from subordinates.
- Willing to change their strategy if new information arises.
- Willing to consider information from other sources.
- Receptive to new ideas from others when making decisions.
Costs and Benefits
- Assesses the risks, benefits, and potential impact of a number of options when deciding a course of action
- Performs a cost/benefit analysis before making a decision.
- Weighs the pros and cons of decisions.
- Determines the costs and potential benefits of decisions.
- Understands what factors are important for deciding if a decision is "worth it"?
- Develops alternative courses of action and choose the best course of action based on analysis of their relative costs and benefits.
Emotional Intelligence
- Has enough self-control to avoid making impulsive decisions.
- Is aware of the impact of decisions and informs others about potential outcomes.
- Has a good rapport other people which is helpful in making decisions on the team.
- Takes into account the impact decisions will have on others.
- Understands how their decisions will affect others.
- Understands the importance of decisions they are making.