Decision Mapping by Power Decisions Group..

White Paper

Decision Mapping: The Mindset and Tools for Crafting Strategy and Focusing Research. By Thomas R. Brown Senior Consultant Power Decisions Group

Scope

Decision Mapping is a way of thinking, or mindset, and a set of specific actions, or tools, used by management to make an enterprise’s core strategies more effective and powerful. Decision mapping is a fast start in a strategy building method that we call the Power Decisions Approach to Strategy.1 Decision mapping can be done in a fast-start mode, to quickly respond to an emerging opportunity, issue, or threat, or as part of an ongoing strategy-building program. The idea of “mapping” a decision is much like what is done in a war room. Resources and tools are assembled and targets identified. Here the target for a businesses enterprise is to enhance competitive advantage. The decision how and where to deploy resources starts by generating and identifying the opportunities and refining options. Moreover, like a war room, everything is in real time; everyone must be awake and prone to action.

What is a decision?

As background, what exactly is a strategic decision? To decide means to exclude, or literally “cut off” all but one option. This implies that there is more than one option or choice from which we “decide.” In this paper and elsewhere I talk about the idea of a thin decision (choosing option A, or not choosing A), or a robust decision using the A-B-C model (choosing A or B or C). When in the arena of major tactical or strategic decisions, the robust decision, or A-B-C model yields better decisions. Decision Type

Options

When to use

Thin

A, or Not A

Routine operational decisions are made this way all the time. It’s what executives and managers are paid to do.

Robust (A-B-C Model)

A or B or C or …

For major decisions, this model works best. Big payoff in doing the work to articulate real options.

Thin decisions usually do not yield optimum results because there has been work on only one option. If the “not A” choice is made, we’re back to square one: The decision is to maintain the status quo. The Thin Decision Trap occurs because is the routine and normal way of day-to-day decisions: an executive identifies a problem and generates a solution. Problem; solution. Over and over. It is the operational norm and it works. The trap is that when we deal with strategy decisions, the thin decision model doesn’t yield superior results because real options are not developed and contested, and rarely is creative thinking applied. It’s risky, and a lazy way of decision-making when big stakes strategy is involved.

That full process I have described in THE POWER DECISIONS APPROACH TO STRATEGY.

Decision Pathway

Opportunity generation is the starting point. To create robust decisions or choices we follow a pathway where the first step is scanning and identifying opportunities. These might involve market, channels, technology, process innovation, or other opportunity areas. The triangle graphic shows the pathway narrowing at each stage.

This represents the idea that high-leverage power decisions must first focus on opportunity scanning to generate many possibilities. Once many opportunities are found, they are converted into strategic options using the A-B-C model. Building options takes considerable work including analysis, research, and creative thinking. They are then further refined as new strategic intelligence is acquired. The refined options are then evaluated against the selection criteria as developed in the Decision Filters discussed below.

ÂŠ2006 Power Decisions Group Inc www.powerdecisions.com 415.339.0498

Benefits of Decision Mapping

Decision mapping helps managers move forward efficiently to get down the pathway to a decision. This process yields better decisions, plain and simple, because of these benefits: Better decisions by promoting strategic thinking. Part of the problem in “strategic planning” is that there is too much emphasis on planning and too little emphasis on thinking and action. Professor Henry Mintzberg led the charge on this issue in his article, Crafting Strategy2, where he asks, “Is it any wonder that formal strategic planning is such a resounding failure?” Decision mapping is an aid to thinking. The result is better decisions, and greater competitive advantage. Getting into action. Part of the mindset here is to both get into action to examine “what we are doing now that’s working” and to force the early creation and clarification options of possible actions in the short and long run. Sure, more strategic intelligence will likely be needed before major actions are undertaken; yet, the mapping process gets it going without delaying because of “a lack of information.” Useful at all levels. Decision mapping is useable at the global corporate strategy level, the operating unit, work group, or product line levels. The mindset and the tools of decision mapping are universally useful – they are easily communicated and used by managers throughout the enterprise. We use worksheets and other aids to stimulate management thinking, creativity, observation, and vision. Gives focus to strategic intelligence requirements. After years in the primary research business, designing and implementing studies of all kinds – from ad testing to new product and new market assessments – one problem repeated itself: A rush to do fresh new research was often so great that the needed strategic thinking was overlooked. As a result, research design was sometimes short sighted due to cloudy management objectives and poorly developed decision options. By ensuring that the needed thinking gets underway first, strategic intelligence requirements become more focused and clear, and the results are far more useful.

The Decision Mapping mindset

An underpinning of decision mapping is an open and exploratory mindset by the management team that seeks to “fill the hopper” with promising opportunities, and then generate and refine multiple decision options. The result is “faster and smarter” decision-making, well-thought out and robust strategic choices, and, in the end, a stronger and well-differentiated competitive advantage and higher market shares and gross profits. By adopting a decision mapping mindset, such words as “opportunities,” “options” and core strategic goals begin to more pepper management discussion. Here’s what the mindset looks like: Aggressive Opportunity Scanning The more opportunities that are found and created, the stronger the strategic options that will be eventually developed from them. There are several tools useful in opportunity scanning. Management has an opportunity scanning mindset that recognizes that in the hunt for strategic opportunities, everything is fair game and an open creative approach yields strong final decisions. A-B-C multiple option development is the norm. In “What is a decision?” above, I discussed the basic A-B-C decision model. Undertaking the work to structure decisions in this way is perhaps more critical than the final choice itself. For well developed options forces debate, evaluation, and strong choices. The push and drive to create multiple options is part of the mindset. Be both faster and smarter. Oftentimes, management in the rush to attack the marketplace, or develop a new product do one of two things: 1) move quickly into action without much attention paid to strategic intelligence, or 2) turn immediately to conducting major studies and analysis. In a sense, both tendencies can be positive, or they can be short sighted. It is good to move quickly, and it is good to harness strategic intelligence. Yet, taking only one path can be detrimental. Decision mapping provides a middle ground to be both faster and smarter by moving quickly and by deploying targeted strategic intelligence.

Decision Mapping Tools

While decision-mapping specifics may vary, there are five primary stepping-stones in a cycle that need to be covered for a complete Decision Mapping process.

Below are some typical tools that we employ at Power Decisions Group when working with clients. I say typical because while the steps are important, the mix of tools used varies depending on whether we are employing it in a fast-start mode, or as a mid-course review process: Answer Key Questions This is a checklist of starter questions that answer the question, “Where are we now?” What are the most critical decisions before us right now? By forcing the clarification of priority decisions as we view them now – before new data is gathered, or new ideas generated – how are the decision points or “decision pivots” constructed? How are those critical decisions structured? That is, what are the options as we view them? Can two or three strong options be identified using the A-B-C model? The answers likely will be thin or incomplete at the outset. A major goal of decision mapping is to identify where decision options need to be developed. What do we know now? What does our Intelligence Platform tell us? What data do we have, either from formal analysis, available data, or anecdotal information? What are we missing? What opportunity ideas are on the table now? If we harvest ideas right now, today, what do we have? This is a precursor to more rigorous formal opportunity scanning. What does management want to do? This gets at the Drivers component of your Intelligence Platform. Management has experience, observations, thoughts, and opinions. What are they? Where is there unanimity? Where is there debate? ©2006 Power Decisions Group Inc www.powerdecisions.com 415.339.0498

Decision Filters Here we distill the drivers and filters – facts, constraints, Decision Filters, and goals – that will drive selection of decision options. The task here is to identify a few, say, three to five, issues on which client management will judge both the priority rank of decisions to be made, and for each, the options to be selected. Drivers and filters are important because they color and make the decision unique for your business unit. Take two competitors, for example: each may construct a strategic decision; for example market entry, in exactly the same way. Yet, the drivers and filters for each player will likely be different because of their market position, capacities and capabilities, goals, risk appetite and view of the market. Decision Agenda The decision agenda uncovers and prioritizes decisions for the organization. Creating the agenda and timeline is an interactive process with that of crystallizing the Decision Filters. Not all-important decisions need to be made today: thus, we use the timeline concept as an aid in the priority setting process. Identify Strategic Intelligence Gaps By addressing the key questions in the mapping process, strategic intelligence requirements arise. During mapping, the goal is not so much to answer those questions, but rather to identify the gaps between “what we know” and “what we need to know” to move forward in the decision pathway. The three components of the Intelligence Platform are useful here: Where is new data needed from internal and external sources? Where do ideas need to be harvested and generated? What management drivers — experience and knowledge — are at play within the organization? This is a vital step. It’s keyed to your unique decision agenda and your unique company.

Conclusion

Decision Mapping is both a mindset and work that provide a fast start for strategy building and review efforts. The good thing about Decision Mapping is that work can start immediately. Its emphasis is on strategic thinking. It points the way for targeting strategic intelligence and research so that it fits the specific decision making framework rather than a shotgun approach. This saves time and costs.

The prime benefits, however, are that Decision Mapping accelerates strategic thinking. That thinking is sharper because of the analytic, evaluation, and creative drills management must do: grappling with tough key questions, defining the Decision Filters on which the decision should be based, and distilling what new information is needed. The bottom line result is better decisions and enhanced competitive advantage.

Contact Information

Thomas R. Brown Senior Consultant Power Decisions Group, Inc. San Francisco, CA 415.339.0498 Tom@powerdecisions.com Website: www.powerdecisions.com

ÂŠ2006 Power Decisions Group Inc www.powerdecisions.com 415.339.0498