Harvard Business Review - 2006.01.pdf

0773361 6480301US$16.95 CAN$25.50SPECIAL ISSUEDECISION MAKINGBETTERFASTERSMARTERwww.hbr.orgJanuary20065252Who Has the D?How Clear Decision Roles EnhanceOrganizational PerformancePaul Rogers and Marcia Blenko 6262Evidence-Based ManagementJeffrey Pfeffer and Robert I.Sutton 7676Stop Making Plans;Start Making DecisionsMichael C.Mankins andRichard Steele 8888Decisions Without BlindersMax H.Bazerman and Dolly Chugh 9898Competing on AnalyticsThomas H.Davenport 1818HBR CASE STUDYAll the Wrong MovesDavid A.Garvin 3232A Brief History of Decision MakingLeigh Buchanan and Andrew OConnell 4242FRONTIERSDecisions and Desire Gardiner Morse 108108BEST OF HBRConquering a Culture of Indecision Ram Charan 118118BEST OF HBRThe Hidden Traps in Decision Making John S.Hammond,Ralph L.Keeney,and Howard Raiffa6harvard business reviewCOVER ART:GIANPAOLO PAGNIF e a t u r e s88Decisions Without BlindersMax H.Bazerman and Dolly ChughEven when spared a deluge of data and given ample time to make decisions,most executives fail to take intoaccount the most critical information at the right time.Understanding such bounded awareness is the first steptoward overcoming it.98Competing on AnalyticsThomas H.DavenportA new breed of competitor is dominating rivals byamassing and analyzing mountains of data.Inside thistype of organization,technology serves strategy,and employees live and breathe the numbers.continued on page 87652Who Has the D?How Clear Decision RolesEnhance Organizational PerformancePaul Rogers and Marcia BlenkoDecision-making bottlenecks can erode performanceeven in highly successful companies.The most impor-tant step in unclogging them is to clarify roles and re-sponsibilities.A practical approach sorts out who makesrecommendations,who must agree,who gives input,who makes the final decision,and who gets it done.62Evidence-Based ManagementJeffrey Pfeffer and Robert I.SuttonWhere do most managers turn for guidance when theyhave decisions to make?Surprisingly,just about every-where except the latest and best knowledge of what actu-ally works.Its time to change that.76Stop Making Plans;Start Making DecisionsMichael C.Mankins and Richard SteeleYour companys strategic-planning process may lookgood on paper,but chances are its being sidestepped by senior executives because it focuses on business units instead of issues.Heres how to create a processthat can really help you make informed decisions.January 2006625288988harvard business review10COMPANY INDEX12FROM THE EDITORDid You Ever Have to Make UpYour Mind?Managers spend their days making(oravoiding)choices and are judged on the outcomes.Yet most managers haveonly the foggiest idea how they came tothose choices.Hence this special issueof HBR,devoted to giving executivesclear frameworks and processes for mak-ing better,faster,and smarter decisions.18HBR CASE STUDYAll the Wrong MovesDavid A.GarvinExecutives at Nutrorim used to makedecisions smoothly.However,a series ofegregious business mistakes and a sud-den PR crisis have brought problems inthe company to the fore.Can Nutrorimsdecision-making process be saved?32A Brief History ofDecision Making Leigh Buchanan and Andrew OConnellFrom oracles and entrails to the scien-tific method,executive information systems,rock-paper-scissors,and gut instinct,our efforts to improve the waywe make decisions have hardly marchedstraight toward rationalism.42FRONTIERSDecisions and DesireGardiner Morse The closer scientists look into our brains,the clearer it becomes how much werelike animals.We have dog brains,basi-cally,with human cortexes stuck on top.And these ancient dog brains conferwith these modern cortexes to influencetheir choicesfor better and for worsewithout us even knowing it.Departments12January 200686STRATEGIC HUMOR108BEST OF HBRConquering a Culture ofIndecisionRam CharanLeaders set the tone for a decisive or indecisive corporate culture.The oneswho insist on honest dialogue and follow-through will be rewarded with organizations that execute consistentlyand well.118BEST OF HBRThe Hidden Traps in Decision MakingJohn S.Hammond,Ralph L.Keeney,and Howard RaiffaMaking decisions is the most importantjob of any executive.But hidden flaws inthe way our minds work can undermineeven the most carefully considered deci-sions.Discover eight mental traps thatmanagers often fall into,and get practi-cal suggestions for avoiding them.128LETTERS TO THE EDITORPeople can feel like impostors not justbecause of gender or family pressures;racial differences and a spiritual discon-nect in the workplace also play a part.131EXECUTIVE SUMMARIES136PANEL DISCUSSIONThe View from AboveDon MoyerOnly a few are empowered to make thebig-picture decisions that move entirecompanies,but everyone can benefitfrom an understanding of where his orher particular decision piece fits into the larger puzzle.3242108118A.C.Milan.98Adams.76Alabe Crafts.32Allstate.98Altria.52Amazon.62,98American Airlines.98American Home Products.52American Hospital Supply.98Amgen.52Bain.62Barclays Bank.9