Join Mike Figliuolo for an in-depth discussion in this video Involving stakeholders in decisions, part of Decision-Making Strategies.
- As you make decisions, there are going to be stakeholders who you need to involve in the process. Now, in terms of stakeholder involvement, there are a lot of challenges, but there are huge benefits to doing so. There are some processes and tools that you can use to appropriately involve stakeholders along the way. In terms of challenges, first, you need to know who to involve in the decision-making process. You need to think through who's going to be impacted by this decision.
Who's input do I need as part of the process? Another challenge with involving stakeholders is actually getting their time. People are really busy, and going to them and saying, "I want your input on a decision we're going to make," is going to take up time on their calendar. You need to let them know, here's the benefit of their involvement in the decision-making process. Next, you'll need to understand what their role is. It can be challenging to tell people, "Your role is going to be decision-maker." Or, "Your role is going to be, you're informed "of the decision, and you have no input whatsoever." In terms of the benefits of going through all this trouble to involve stakeholders.
First, you're going to identify risks and opportunities much earlier in the decision-making process. By getting their input sooner, you're going to start building support and buy-in for that ultimate decision you're trying to make. Next, you're going to get their support in terms of execution. Those people are going to be invested in the decision and feel like it's the right choice for the organization. They're going to offer appropriate resources and support after the call has been made.
In terms of tools and techniques for involving decision-makers, and getting stakeholders to provide their perspective, there may be standardized decision-making templates, or business cases in your organization that are regularly used. There may be regular decision meetings that are held. I know some organizations that have a regular, scheduled meeting every month where people can bring decisions to that committee, the decision is made in the meeting, and then it's executed thereafter.
You may have project plans where there are staged decision points. For example, if you're launching a new technology project, there may be a stage of getting funding, then coming up with a functional design, then actually launching the technology platform. You may have projects where those decision points are specifically called out. The last tool you might use is called a RACI Matrix, where you identify who's responsible for the decision, who's accountable for it, who's consulted, and who's informed.
I'll go into more detail on what a RACI Matrix is, and how you can use it, in a later video. So, as you think about stakeholder involvement in this process, understand there are huge challenges to getting them involved. But there are big benefits that offset that, and there are plenty of tools and processes that you can use to do so effectively.
- Define types of decision-making styles.
- Explain the benefits of participatory decision-making.
- Identify when to use a consensus-based decision-making style.
- List the components of an RACI matrix.
- Describe how to reduce decision-making risk.
- Implement a decision-making cycle.