We have all experienced the complexity and difficulty in making decisions. As leaders, we bear a greater responsibility for those under our watch.
The late Peter Drucker, one of the foremost thinkers on business management, wrote in his classic book, The Effective Executive:
“Decisions of the kind the executive has to make are not made well by acclamation. They are made well only if based on the clash of conflicting views, the dialogue between different points of view, the choice between different judgments. The first rule in decision-making is that one does not make a decision unless there is disagreement.”
Of course, Drucker’s thinking presupposes the executive has a management team that holds different perspectives, experiences, viewpoints, points of view and business experiences to offer that 360 degree perspective on the implications of the decision being discussed.
We see cases in business where not all viewpoints are solicited - mergers & acquisitions, marketing and sales plans, rebranding, succession plans, etc., where the decision is a mistake. That there was no serious discussion around the decision almost always is the case. That those in the decision meeting, for whatever reason, were confined in offering their honest viewpoint. Perhaps it was the worry of an executive’s reaction, being seen as ‘outside the inner group thinking’ by peers, being too timid to raise a concern, or having a enterprise culture of not providing honest feedback. The public consequences include a reduced share price for public companies, media embarrassment, a decline in brand favorability, or a combination of bad outcomes.
We see similar consequences among associations and nonprofits. In fact, I would argue that there is a greater demand for strong discussion and debate in important decisions as these organizations rely on volunteering participation and financial support. So a wrong decision could have an even larger negative impact on the organization.
That, of course, brings me to the issue of diversity and inclusion. I think odds a great that a more diverse and inclusive organization will mean greater perspectives, viewpoints, cultural backgrounds, thereby enriching the discussion around important decisions. An association CEO, steeped in a team that is diverse and inclusive, will have more data points and arguments to synthesize as the executive produces a thoughtful decision.
I was honored to recently participate with Vetted Solutions in a research study on diversity and inclusion in the association sector. The results and suggestions from those who engaged in the research once again reinforced the points raised by Drucker. You can download the research paper here:
Of course, the topics of diversity and inclusion mean different things to different people. The point I am trying to assert here is that diversity (widely defined) and inclusion (defined as an organizational culture of honesty and respect for individuals offering their viewpoints) is an essential for effective executive decision-making. It usually results in a better decision, a stronger team commitment, and greater benefits to the association and nonprofit stakeholders.