As a person or an organization matures, decisions need to be distributed across the team to those closest to the choice. In the absence of clearly articulated and communicated values (and a 2-word purpose) even the most well-intended person makes ungoverned decisions — typically on emotion rather than values.
Where is the root responsibility for such “ungoverned decisions?” If values are not “articulated and communicated” plus reinforced regularly, then leadership, not the person, has failed.
Consider the sheer number and importance of decisions made every day by every person associated with your organization. Every line item on your income statement reflects a decision. Ask: Do we have a specific decision making process in place that is introduced at orientation and is a regular part of our corporate conversation and storytelling?
The highly likely answer is, “No. In fact, with everything else I need to get done, this hasn’t even been on my radar.” The problem is you’re too busy making decisions that could be better done by someone who is closer to the problem who is trained, tested, and trusted.
Experience tells us that this leadership “oversight” undermines sales and profits by 25% annually. Run the numbers — now you know the price of poor leadership!
Better Decisions = Better Business
Values seem well below the surface of the daily waves of activity. In fact they are on the surface of every decision made by every team member. Coming to terms with this hard reality in the busyness of the day can be a daunting, humbling, task for the leader.
On-Purpose Partners helps clients to define, share, and activate their purpose, vision, mission, and values (PVMV) so better decisions are more consistently made across the company.
Follow our 3-step ACE decision making process to align and improve the decision making quality, speed, and effectiveness:
- Articulate: Purpose, Vision, Mission, and Values (PVMV). These “On-Purpose Statements” can typically be identified, refined, and written in less than a week for most organizations. For smaller businesses they can be completed in less than a day.
- Communicate: Find authentic stories within the organization that reflect the values. Create an open dialogue to introduce them to the larger team so ownership of them spreads into the hearts, minds, and guts of those who engage.
- Exercise: Put your On-Purpose Statements to work by creating decision matrices across the organization. Here are just a few places decision-making is improved using On-Purpose Statements:
- Strategy & Planning – It is easy to get mechanical and analytical about strategy and planning but your PVMV keep it real on a human level.
- People – Employment, engagement, and retention of team members are profoundly influenced by PVMV. This is where “The Tingle Factor” comes from. See The On-Purpose Business Person to learn more about The Tingle Factor.
- Financial management – Complement the ROI, NPV, or IRR analysis with your PVMV analysis.
- Vendor/sub-contractor selection – Does the vendor demonstrate similar PVMV? Have you shared what you value as a part of right business performance?
- Operations – Are the people and processes informed and aligned with the PVMV to create the performance needed to grow the business? If not, then you’re producing a flawed product.
- Marketing & Branding – Truth in advertising matters. What, however, determines “truth”? Your PVMV keep the company true to what matters most.
The power of On-Purpose® is profoundly relevant to execution and profitability — but only when the CEO or leader decides it is. Otherwise, it is business as usual.
Business as usual or business on-purpose? Now you’re facing a decision!