Chasing Transparent Decision Making Process
What is decision transparency?
For me, it is the resulted (current and future – decreased for inflation) accurate cost and revenue contribution per decision. It is summed Profit & Loss statement per decision with historic, current and future (planned) values.
One important note, decision transparency is only trust worthy if it is calculated within complete corporate picture. It cannot be calculated without internal company influences. It cannot be calculated in corporate vacuum because decision implementation will influence human resources, logistics, sales force, design, research and development… What ever. If decision is being implemented it will influence other companies performance indicators as macro or micro influence. This is common mistake in calculation decision impact through business cases that many overhead influences are simply neglected. Neglecting leads to fraudulent calculation figures = non transparent decision effect.
Without any doubt, decision transparency may be treated as problematical on current decision making positions. Installation of advanced decision support solutions that can provide certain level of decision transparency, may hurt current management nomenclature in a way that it can show gaps in analysis that were used as basis for decision making.
But, is it their fault? It is not a disaster - management fault, if there was not proper resource for quality decision transparency provided. Resources are expert analysis, processes, time, standards and software tools. Without this “technology”, it is impossible to make calculations without gaps in revenue or cost estimations.
But, it is a disaster for company if decision makers intentionally sabotage implementation of decision making metrics.
Why would current executive management have interest to show that they had failures and admit weak decisions? They can do their job and move further in year or two as successful worker – moving to other “challenges”.
Mistake is not mistake, but as the mistake is considered proactive and brave decision. How many brave decisions company can survive until values are wasted?
It is not an easy decision to include transparency on decision levels and undercover previous wrong decisions with names of decision makers. Introducing transparent decision making process is hard and tough political decision.
We have figured out how to make decion making process transparent and it is documented within Total Controlling Concept.