Decision Making

 
King John signs the Magna Carta, engraving by James William Edmund Doyle, 1864 (Source: Wikimedia Commons)

Corporate Governance from the Bottom Up

Idea posted: January 2014
  • CSR & Governance
  • Finance
  • Learning & Behaviour

Non-executive directors are often seen as a way to avoid corporate ‘buccaneering’ and tame reckless CEOs. Their exact contribution to companies, however, remains unclear. Independent executives, on the other hand, have been shown to be accurate ‘predictors’ of profitability, performance and value creation.

Internal monitoring by the CEO's immediate subordinates should be the new area of focus in the corporate governance debate.

Idea #299
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BOAC advertisement (detail), 1946. BOAC was a British airline, which merged with BEA in 1974 to form British Airways.

Top flight talent? The Value of International Assignments

Idea posted: October 2013
  • CSR & Governance
  • Leadership & Change
  • Learning & Behaviour
  • Operations

What are the factors – at both an individual level and a corporate level – that affect the relationship between international assignment experience and career advancement? Research suggests it is not as easy for leaders to rise to the top if they have been away from head office for too long.

Idea #244
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Using Adaptive Decision-Making in Customer Management

Idea posted: October 2013
  • Learning & Behaviour
  • Marketing

How do managers make decisions related to customer relationship management? This Idea looks at research that shows that the majority of managers are adaptive in their decision-making, and those that demonstrate the highest accuracy in their decisions also employ “fast and frugal heuristics” – i.e. rather than using careful analysis of information, they use experience-based techniques for problem solving.

Idea #241
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Money for Nothing: The Truth About Investment Consultants

Idea posted: October 2013
  • CSR & Governance
  • Finance
  • Learning & Behaviour

Widely used by retirement plan sponsors and pension fund trustees, investment consultants advise on institutional assets worth trillions of dollars. But their influence is not matched by their performance. New research finds no evidence that they add value to plan sponsors — or provide higher returns for pension scheme investors.

Idea #230
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The Meeting, Ester Almqvist, 1929, (Source: The Swedish National Museum. Wikimedia Commons)

Leadership Ensembles: 4 Blueprints for Senior Decision-Making

Idea posted: October 2013
  • Leadership & Change
  • Learning & Behaviour

The ‘Lone Ranger’ style of senior leader decision-making is a thing of the past; most organizations now bring together groups of leaders (‘ensembles’) for input into different types of decision-making. This Idea identifies approaches for these ensembles to follow in order to make the most successful choices and reach the best decisions when they come together.

Idea #229
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Beating Bias through Mindfulness Meditation

Idea posted: September 2013
  • Leadership & Change
  • Learning & Behaviour

Mindfulness meditation, the practice of clearing one’s mind of all other thoughts but the ‘present moment’, partly by focusing on the physical sensation of breathing, has long been associated with personal feelings of ‘wellbeing’ and positivity. But it has wider, more practical, benefits. New research suggests that leaders who use the technique are more likely to be resistant to the decision-making curse of ‘sunk cost bias’ — and, consequently, more likely to create value.

Idea #225
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A scene from 'Iphigenia in Tauris' by Euripides. Roman fresco in Pompeii (Source: Wikimedia Commons)

Decision-Making With Emotional Intelligence

Idea posted: September 2013
  • Leadership & Change
  • Learning & Behaviour

Decisions, especially decisions involving risk, are often guided by emotions, such as anxiety, that in fact emerge from completely unrelated events. Emotionally intelligent leaders are less likely to make a mistake with “incidental” anxiety because they recognize the irrelevant source of their emotions. Leaders can also help others reduce the impact of incidental anxiety by simply pointing out the true source of their emotions.

Idea #217
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King Lear, a UK TV film version, 2008, starring Sir Ian McKellen, Frances Barber, Romola Garai, Jonathan Hyde and Sylvester McCoy; directed by Sir Tevor Nunn and produced by Paul Wheeler for Channel 4

When Allowing Decision Latitude Can Backfire

Idea posted: September 2013
  • Leadership & Change
  • Learning & Behaviour

The best leaders today avoid micromanaging their employees, recognizing that giving employees job autonomy and decision latitude — allowing employees to make decisions concerning their work — will result in greater motivation and better performance. New research, however, shows that too much decision latitude can backfire. Instead of being viewed as effective and conscientious leaders, the research shows managers who give their employees too much discretion and freedom in decisions and managing their work will be viewed as not being conscientious about their work.

Idea #212
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Officer cadets from Serbia's Military Academy, Belgrade, Serbia, 2010 (Source: Wikimedia Commons)

Social Influences on Decision-Making: Neuroscience Insights

Idea posted: July 2013
  • CSR & Governance
  • Finance
  • Learning & Behaviour

Decision-making is often strongly influenced by social factors, and research in the nascent field of neuroeconomics (which crosses the disciplines of psychology, marketing, economics and neuroscience) is helping to explain why. ‘In-group conformity’ is mediated by signals in the brain associated with emotion and reward and can be stimulated by the so-called ‘love hormone’, oxytocin. Neurobiological insights like these raise important questions for strategy design — in both the private and public sectors. 

Idea #184
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The German delegation at the Treaty of Versailles, 1919 (Source: Wikimedia Commons)

Conducting Better Meetings - Can Data Help?

Idea posted: July 2013
  • Leadership & Change
  • Learning & Behaviour

The science of meetings — which includes collecting sophisticated data that analyzes meetings word-by-word and phrase-by-phrase — is still in its infancy. Researchers from MIT, however, used an available database with a myriad of data to reach some tentative conclusions about different facets of meetings, from calculating average ‘wrap-up’ times once a decision is reached to identifying the most persuasive words used in meetings. They were even able to use language analysis to identify when participants in a meeting were about to make a decision

Idea #182
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