Decision making takes most of the time of our lives. We constantly decide to do something in daily life. On our topic, I see business life is all about making decisions all day long. The degree of authority and impact of the decisions depend on your position level. I see big change in trend of decision making. We go through the period of deciding of our own decisions towards algorithms taking decision and we are just facing with results. That is the part we shouldunderstand much better as Next Generation CEO.
I will mention some key parts of decision making. First of all, having courage to take a decision for your company is responsibility itself. We discussed the digitalization, new world, new markets, risk, etc. and all of them affect your responsibility on deciding something. Some CEOs collect all management circles and give ownership of decisions to that circle not them. That shows to take all responsibility of your decisions is not easy job. Nowadays, utilize digitalization more on decision making is the key. Big data, data analytics are key levers to accelerate the efficiency of decisions. Famous CEOs were always mentioning like they feel in gut, based on experience and all in last 20 years...In future, all the machines will take the decisions. Using Artificial Intelligence will be the key. While coding all these algorithms, only think we should focus on is which portion of decisions need to be considered mechanic or emotional by human being. That will result the way we do business in future. Maybe there will be no need for CEOs/Leaders anymore. I can guess machines can calculate more options of decisions than humans.
Another topic is how important data is when you are up to take a decision. If we think less than 5% of all data generated is analyzed yet, that shows the potential or data analytics for future. If you can mean your data in different angles, this will automatically give you the options/scenario. In decision making, key growth area will be data in digital way. Just as a recommendation for CEOs, you have to determine what the key efficiency parameters to maximize the decision making in right way. To increase the efficiency, speed of decision making is important as well. If you are too late to take a decision, you become one good part of history. To have the acceptance of your decisions is another challenge. You have to determine the anchors in your organization to support your decisions as well. Otherwise, you lose your time by trying to convince key people in your organization. Speed and anchors are two important factors affecting the result of decision making.
There are thousands of methodologies in decision making of course. My favorite is 4D concept. Based on urgency and importance, you have to segment your decision making period into 4Ds. These are Delete, Delegate, Do, Decide. As far as I observe some CEOs try to do everything in organization and tell they are so effective and hands on. There is no way you can effective by having all your decisions on your own in every area. You have to prioritize and simplify all the time. If you think no urgency no importance, just delete it. Another example can be that you think important but not urgent, delegate more to improve the competency of your colleagues. This is so simple to use and really helps.
My point is more like determining a point shows the coding part of decisions. We have to automate most part of decision making and leave it to self learning machines in Artificial Intelligence. CEOs’ part should be the things more related to humans, society, culture, etc. Utilize the data part more for analytics, create scenarios, and delegate as much as you can depending on importance/urgency, leave the fun part like human related topics to yourself. I think this would be the best case as Next Generation CEO.