We have all heard the mantra – disrupt or be disrupted, and we have all seen the rapid changes in traditional industries. Thanks to Airbnb, Uber and PayPal et al, we have seen a tremendous shake-up in industries that have been around for centuries, relatively unchanged. We have witnessed the slow response to this change by the large organisations, trying in vain to implement change and hang onto market share. The bigger the organisation, the harder it is to communicate the complex decisions made by senior executives that drive change.
Implementation of senior management decisions across complex global companies is difficult, yet decision-implementation lag is what is hurting large organisations trying to respond to the threat of start-up innovation- the “turning the oil tanker around” syndrome.
Decision-making in most organisations is not a perfect analysis of external and internal factors, leading to a single incontrovertible decision. Instead, organisational decision-making tends to be influenced, often adversely, by a number of factors – incomplete information, unconscious distortions and conscious deceptions.
Is your organisation suffering from information saturation?
Organisations often suffer from information saturation and have inadequate tools to find the right information within context when it’s needed. Because of this, decision making, decision communication and implementation is weakened. This is prevalent in companies that rely on written internal communication. When ideas are communicated via video, more content is retained – for a longer period. Studies have shown that employees retain up to 60% more information if it is communicated via a visual medium, thereby accelerating implementation of executive decisions and facilitating change. Informed employees are engaged employees.
There is a large potential upside that can accrue to an organisation that can implement balanced and well-informed decision making. In fact, the ROI on good decisions is around 7 percentage points. However, most executives in a recent McKinsey study said bad decisions were as common as good ones. A third surveyed thought that good decisions in large organisations were rare.
Are your employees fully-engaged and informed?
As a CEO or board of a large organisation, are you satisfied that your decisions are being implemented in a way that positively impacts your profitability? In an accelerated timeframe? Are your employees fully-engaged and informed? In this age of information saturation, does your organisation have the right software platform to secure, distribute and exploit your valuable corporate media assets?