Title: The Decision Maker: Unlock the Potential of Everyone in Your Organization, One Decision at a Time
Author: Dennis Bakke
Year: 2013
Category: Decision Making

Introduction

Dennis Bakke’s “The Decision Maker” introduces a revolutionary approach to leadership and management, dissolving traditional hierarchical decision-making processes. Instead, Bakke advocates for empowering employees at all levels by entrusting them with significant decisions. Grounded in principles of trust, respect, and responsibility, Bakke’s model is designed to unlock the potential of every member in the organization, fostering a more dynamic, innovative, and committed workforce.

1. The Decision Maker Philosophy

Main Point: Shift decision-making from leaders to employees.
Action: Implement a decision-making structure where decision-making authority is distributed throughout the organization.

Concrete Example: In the book, a character named Tom Hiller, the CEO of a manufacturing firm, starts the transformation by delegating important decisions to members of his team, as opposed to retaining control at the executive level.

Implementation Tip: List key decisions made over a month and determine which can be delegated to staff members. Begin with smaller decisions and gradually move towards larger ones as trust and competence build.

2. Trusting Employees

Main Point: Trust employees to make the best decisions based on their expertise and proximity to the issues.
Action: Implement clear guidelines and provide the necessary information, then step back and trust the process.

Concrete Example: Sarah, a mid-level manager, was given the responsibility to decide on a significant purchase for her department. Equipped with information and her team’s input, she made an informed decision that benefited the company, reinforcing her sense of ownership and competence.

Implementation Tip: Create a knowledge-sharing platform where all relevant data and guidelines are accessible to the employees, facilitating informed decision-making.

3. Encouraging Responsibility

Main Point: Increase employees’ sense of responsibility by giving them control over their work outcomes.
Action: Clearly define the scope of control and expected results, and hold individuals accountable.

Concrete Example: When Jim, an engineer, was given the authority to approve project budgets, he also knew he was responsible for the project’s success. This responsibility led him to be more meticulous and committed.

Implementation Tip: Begin with a pilot program where a small but crucial group of employees is given full responsibility for a project, including budget, deadlines, and deliverables.

4. Creating a Decision-Making Culture

Main Point: Cultivate a workplace culture that supports and values distributed decision-making.
Action: Regularly communicate the benefits and successes of this approach to the whole team.

Concrete Example: Regular meetings were initiated where employees shared their decision-making experiences, both successes and failures, fostering communal learning and support.

Implementation Tip: Organize monthly “decision forums” where employees can discuss their decisions, insights, and feedback openly with their peers.

5. Training and Support

Main Point: Equip employees with training and tools to be effective decision-makers.
Action: Develop a comprehensive training program focused on decision-making skills.

Concrete Example: Workshops and seminars were conducted to educate employees about risk assessment, critical thinking, and problem-solving, ensuring they felt capable and confident in their decisions.

Implementation Tip: Partner with external consultants to design a tailored training program that incorporates real-life scenarios relevant to your business.

6. Learning from Failure

Main Point: Treat mistakes as learning opportunities rather than focusing on blame.
Action: Implement a constructive feedback mechanism to review decisions.

Concrete Example: When an employee’s decision led to an unexpected loss, instead of reprimanding, the company held a review session to analyze what went wrong and identify preventive measures for the future.

Implementation Tip: Introduce a “lessons learned” report as a standard practice after every major decision, encouraging reflection and continuous improvement.

7. Empowering Teams

Main Point: Empower teams to make collective decisions, enhancing collaboration and innovation.
Action: Form cross-functional teams with the autonomy to make decisions about their projects.

Concrete Example: A cross-functional team was tasked with launching a new product. With full decision-making power, the team collaborated effectively, bringing the product to market faster and with more innovative features.

Implementation Tip: Start by selecting a pilot project and forming a cross-functional team with decision-making authority, providing initial guidance and benchmarks to keep the team aligned.

8. Measuring Impact

Main Point: Measure the effectiveness of distributed decision-making to continuously improve the process.
Action: Establish metrics to evaluate decision efficiency and outcomes.

Concrete Example: The CEO implemented key performance indicators (KPIs) to measure the impact of decisions on customer satisfaction, financial performance, and employee engagement, adjusting tactics based on these insights.

Implementation Tip: Define clear KPIs before implementing a decision-making change and regularly review these metrics to gauge success and areas for improvement.

9. Communicating Vision and Values

Main Point: Ensure that all decisions are aligned with the company’s vision and values.
Action: Regularly communicate the company’s mission and core values to all employees.

Concrete Example: The organization conducted quarterly town hall meetings where the CEO reiterated the company’s mission and discussed how recent decisions aligned with those values, providing context and coherence.

Implementation Tip: Develop a quarterly communication plan to re-emphasize the company’s vision and values, linking them to everyday decision-making scenarios.

Bakke’s “The Decision Maker” advocates for a paradigm shift in how decisions are made in organizations. The key takeaway is that empowering employees not only enhances their engagement and satisfaction but also drives better business outcomes through collective intelligence and ownership. By trusting employees, encouraging responsibility, and creating a supportive decision-making culture, organizations can unlock their full potential.

Incorporating these principles requires careful planning, effective communication, and commitment to continuous learning and improvement. The concrete examples provided in the book serve as practical illustrations of how to implement these changes successfully. Following Bakke’s advice, organizations can transform their decision-making processes, leading to a more dynamic, innovative, and resilient business environment.