Every Business Runs On Decisions: But Are Your Decisions Driving Success?

Back in 2010, McKinsey quantified the ROI of a quality decision-making process, demonstrating that even the best analysis in the hands of savvy managers doesn’t guarantee great decisions—it’s the process itself that truly makes the difference. [1]

Today, in the fast-paced and ever-evolving world of education, making good decisions has become even more challenging. Education leaders are often caught between navigating overwhelming amounts of information, which can obscure strategic clarity, and the risk of getting stuck in narrow perspectives that limits diverse thinking.

With limited time and resources, leaders are under pressure to make quick decisions. This can lead to strategic missteps and less-than-stellar results. Even with the best intentions, it’s all too easy to miss the mark when it comes to decisions that ensure long-term success. Despite the critical nature of decision-making, organizations often fail to invest in the disciplined approach and cultural shift necessary to consistently achieve high-quality outcomes.

To steer through these challenges, leaders should focus on a decision-making process

rooted in key practices proven to enhance decision quality:

Well-Defined Decision Criteria: Clear, well-defined criteria are essential to prevent decision-making from becoming arbitrary. These criteria should be regularly reviewed and refined by key stakeholders to ensure they remain relevant and aligned with the institution’s strategic objectives, capabilities, and context. A real-world example could be a university regularly updating its admissions criteria to reflect new market demands and student demographics. Moreover, understanding the impact of organizational culture is vital—leaders must recognize how culture can either support or hinder the adoption and implementation of strategies. A comprehensive change management plan can bring the entire organization together, ensuring that transformative decisions are successfully realized.

Multiple Solution Alternatives Analyzed: Rarely does a single option lead to the best decision. Leaders must ensure that a spectrum of solution alternatives (not simple tweaks, but true alternatives to addressing a challenge or opportunity) is thoroughly explored and analyzed. For instance, rather than simply tweaking an existing program or adding a new program, a university might explore completely different educational models—such as Hybrid learning versus or modular credentials—to address enrollment challenges. This practice not only enhances the chances of finding the optimal solution but also provides a deeper understanding of the range of potential consequences of each choice.

Assumptions Proved or Refuted: Every decision is underpinned by assumptions, and these must be rigorously tested. Leaders should champion a process that either proves or refutes these assumptions through solid evidence and analysis, minimizing the risk of decisions based on shaky or outdated beliefs. A good practice is holding 'assumption testing' sessions where teams challenge foundational beliefs with data, ensuring the decision-making process is grounded in reality.

Evidence is Robust and Reliable: Robust and reliable evidence is the cornerstone of informed decision-making. Leaders should be vigilant about the quality and source of the data they rely on, ensuring that the evidence supporting their decisions is comprehensive and dependable. For example, relying on multiple data points from independent sources can ensure that decisions are based on more than one perspective, reducing the risk of bias.

Healthy Clash Happens: Quality decision-making often benefits from constructive conflict. Leaders should encourage a culture where healthy debate and differing viewpoints are welcomed. When team members feel safe to challenge ideas and assumptions, it leads to a more thorough exploration of options and prevents groupthink. For example, one university introduced a “Red Team” approach, where a separate team is tasked with critically analyzing decisions to foster healthy conflict and ensure no critical issue is overlooked. This kind of intellectual friction, when managed respectfully, can sharpen thinking and lead to stronger, more resilient decisions.

Inquiry Over Advocacy: The most effective decisions emerge in environments where curiosity and open-mindedness are prioritized. Leaders should cultivate a culture that values asking questions and exploring diverse perspectives rather than simply defending established ideas or interests. This approach not only enriches the decision-making process but also fosters a learning environment that mirrors the values they wish to instill in their communities. An example might be hosting regular brainstorming sessions where all ideas are considered without judgment, fostering an inquiry-based culture.

Process is Perceived as Fair: The perception of fairness in the decision-making process is crucial. Leaders must prioritize transparency and inclusiveness, ensuring that all stakeholders view the process as equitable. Leaders could, for instance, publicly share the criteria used for decision-making to ensure transparency. When decisions are seen as fair, they are more likely to be embraced and supported across the organization.

Harmful Biases are Limited: Finally, leaders must be proactive in identifying and mitigating harmful biases. This involves recognizing and addressing biases like confirmation bias, anchoring, and groupthink. By acknowledging and minimizing these influences, leaders pave the way for more objective and effective decisions. Introducing training programs to raise awareness of unconscious biases among decision-makers can help organizations tackle these biases head-on.

Decision-making is not just about intuition or experience; it requires discipline and intentionality. Leaders can start by assessing their own decision-making process, identifying areas for improvement, and integrating these practices into their organizational framework. By doing so, they will not only enhance decision quality but also ensure sustainable success and stronger futures for their organizations.

---------------------------------------------------------

[1] "The case for behavioral strategy" McKinsey Quarterly, March 2010.

---------------------------------------------------------

Check out our infographic as a quick reference for these key practices: