Achieving Clarity

Improving decision making in an uncertain world

When key decisions loom, organizations often find themselves mired in uncertainty, struggling to achieve the clarity needed to proceed with confidence. The path forward is clouded by complex risks, uncertainties, and the inherent biases that skew decision-making processes. The result? A lack of clarity that not only hampers effective decision-making but also undermines performance and results.

Decision Challenges

Choices are not always optimal

Many organizations and individuals feel that they have been making the right decisions. And to a large extent this perception is correct. Why else are many companies successful? Why else have we achieved that a substantial part of the world population lives in reasonable prosperity? At the same time we would all agree that the glass is partly empty. If we look around us we still see poverty. We see undesirable trends and developments. We see a lot of companies and governments struggle. This is especially so, for example, in periods of financial instability or disastrous global development such as a pandemic. We then see many examples of inadequate decision making.

Making decisions can be perfected

Yet, making decisions is something all of us do, every day. We gather information, consider different options, ask ourselves which aspect should weigh highest, and bite the bullet. Often this is done naturally, without a lot of deliberate consideration. And often that works out fine. It is like running. All of us can run as a trivial skill. However, to run properly and to conduct running as a sport, one can learn techniques to run faster, longer and without injuries.

Choices are often impaired by cognitive biases

So what makes decision making under uncertainty so challenging? For a start, we all have our so called cognitive biases. This also applies to senior government officials and CEOs. As humans we have a tendency to fall back to a 'this is how it is' mentality. This can be laziness, but it is also due to the fact that it is not easy to revisit mental models. We thus run the risk of taking too narrow a view. We may not consider all issues that could play a role. This does not mean that at every point along the way everything is up for discussion all the time, but at the right occasions a diverging but structured thinking mode involving diverse perspectives helps. We call this framing.

The most challenging phenomenon in decision making is uncertainty

Another key issue with decision making is uncertainty. Choices become a lot easier if we would, for example, precisely know the future costs, revenues, events, economic developments, regulatory and political issues, and many other elements of uncertainty. Since we do not have that privilege, there is always the risk that the outcome may not be as anticipated. It is therefore essential to obtain sufficient clarity on the degree and nature of the uncertainty before a decision is made.

At Claridec, we specialize in dispelling this fog.

Are you an executive decision-maker in the energy, mining, government, infrastructure, or pharmaceutical sector? Then let us help you achieve greater clarity and confidence.

Our approach is grounded in a structured decision-making framework that systematically addresses uncertainties and mitigates biases, thereby enhancing organizational performance.

Transform Your Decision-Making with Claridec's Virtual Upskilling Programs

Our virtual Upskilling Programs are tailored for the modern executive. Leveraging video conferencing, online learning modules, and remote on-the-job coaching, we empower your leaders with the tools and insights to make informed decisions. This blend of technology and personalized coaching ensures that your team not only learns but applies these principles effectively within your unique organizational context.

Decisions Shape Your Destiny

To navigate the complexities of critical decision-making, a comprehensive approach is essential. This begins with establishing a robust decision governance structure, which includes clear leadership roles, seamless integration of decision processes, and adherence to decision clarity principles. But understanding the challenge is only half the battle.

Equally important is applying the right process and tools to the problem. McKinsey has estimated that a rigorous decision-making process improves the decision quality six times more than analysis alone. From framing the decision to evaluating alternatives and ensuring readiness for action, our toolkit is designed to bring clarity to every stage of the decision-making process.

Highlighted Tools and Techniques:

• Framing: This is where many poor decisions start. We help you clearly define the right problem or opportunity, considering all relevant factors and stakeholders to ensure a comprehensive view.
• Alternatives Generation: According to Bain, 82% of companies only consider a new course versus the present one, or are presented with superficial alternatives. This is bad. We help executives develop creative yet feasible alternatives, moving beyond the obvious to uncover innovative solutions.
• Evaluation and Trade-offs: Relying on gut instincts when evaluating alternatives can lead to regret when initiatives fail. Our seasoned professionals help leaders source meaningful and reliable information to weigh options against clear values, preferences, and trade-offs.
• Commitment to Action: Many sound decisions fail due to poor commitment and execution. We understand the importance of alignment and execution readiness and can help foster commitment among key stakeholders.

Whether you're in the energy sector facing strategic investment decisions, a government agency prioritizing infrastructure projects, or a pharmaceutical company navigating complex regulatory environments, our approach is designed to elevate your decision quality and drive superior results.

McKinsey: The Case for Behavioral Strategy
Bain: How Organizations Make Great Decisions