{"id":82068,"date":"2022-10-22T13:49:00","date_gmt":"2022-10-22T17:49:00","guid":{"rendered":"https:\/\/www.shortform.com\/blog\/?p=82068"},"modified":"2022-10-31T12:00:23","modified_gmt":"2022-10-31T16:00:23","slug":"decision-making-in-organizations","status":"publish","type":"post","link":"https:\/\/www.shortform.com\/blog\/decision-making-in-organizations\/","title":{"rendered":"Decision-Making in Organizations: Seek Advice, Not Consensus"},"content":{"rendered":"\n<p>Who should hold the <a href=\"https:\/\/www.shortform.com\/blog\/methods-of-decision-making-crucial-conversations\/\">decision-making<\/a> power in an organization? What&#8217;s the trend in this arena?<\/p>\n\n\n\n<p>Some emerging organizations operate from a new set of rules that veer away from hierarchical structures based on power and achievement. The most counterintuitive aspect of these visionary organizations is their approach to making decisions.<\/p>\n\n\n\n<p>Continue reading to learn about this revolutionary approach to decision-making in organizations.<\/p>\n\n\n\n<!--more-->\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-decision-making-in-organizations\">Decision-Making in Organizations<\/h2>\n\n\n\n<p>Fr\u00e9d\u00e9ric Laloux explains that the decision-making in organizations that are visionary (what he calls &#8220;Teal organizations&#8221;) is about gathering advice rather than consensus. <strong>Anyone can <a href=\"https:\/\/www.shortform.com\/blog\/be-decisive\/\">make a decision<\/a> for the company, so long as they seek advice beforehand.<\/strong> Because everyone in the company has this power, it increases everyone\u2019s responsibility, demands cooperation, and mandates the need for transparent communication.<\/p>\n\n\n\n<p>Laloux says that, theoretically, anyone in the company can make any decision, regardless of scope. This includes creating new roles, spending company funds, finding new clients, and implementing new systems. What\u2019s important is that the size of the decision determines how much advice must be sought. Everyone impacted by the choice should be consulted, all the way to the CEO for decisions that affect the whole company.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>The Netflix Model<\/strong><br><br>One highly visible company that grants its employees a free hand to make decisions regarding their own projects is Netflix, as described by CEO Reed Hastings in <a href=\"https:\/\/www.shortform.com\/app\/book\/no-rules-rules\"><em>No Rules Rules<\/em><\/a>. By letting <a href=\"https:\/\/www.shortform.com\/app\/book\/no-rules-rules\/chapter-6\">workers make (and be accountable for) crucial decisions<\/a> that benefit the company, Netflix has been able to adapt to an ever-changing entertainment landscape.&nbsp;<br><br>Agreeing with Laloux\u2019s advice-seeking model, Hastings emphasizes that Netflix employees are expected to make well-informed decisions after <a href=\"https:\/\/www.shortform.com\/app\/book\/no-rules-rules\/chapter-6#step-1-get-feedback\">gathering feedback from managers and colleagues<\/a>. Because absolute candor is necessary for this process, it\u2019s considered bad form for a colleague to withhold a skeptical or contrary opinion. However, it must be noted that Netflix employees aren\u2019t able to make company-wide decisions, as is the case with the model Laloux advocates.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>Laloux makes it clear that <strong>the advice-seeking process is not a quest for consensus.<\/strong> Once the appropriate advice has been given, the employee can make whatever decision they feel is right. The advice process gives everyone a voice, but it doesn\u2019t give anyone a veto, not even the CEO. In fact, even the CEO must go through this process before making decisions. <em>Not <\/em>doing so is a sure way to get fired.<\/p>\n\n\n\n<p>Distributing so much power throughout the organization means it\u2019s absolutely necessary that everyone employed has access to all available information. Laloux says that keeping information compartmentalized would be lethal to companies in which anyone can steer the ship. Visionary organizations make use of intranets, blogs, and all-hands meetings to keep staff apprised of the company\u2019s initiatives, as well as any difficulties it\u2019s currently facing.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>The Bridgewater Model<\/strong><br><br>In <a href=\"https:\/\/www.shortform.com\/app\/book\/principles-life-and-work\"><em>Principles: Life and Work<\/em><\/a>, Bridgewater CEO <a href=\"https:\/\/www.shortform.com\/blog\/who-is-ray-dalio\/\">Ray Dalio<\/a> describes seeking advice from others as a process of setting aside <a href=\"https:\/\/www.shortform.com\/blog\/your-ego\/\">your ego<\/a>. He emphasizes that <a href=\"https:\/\/www.shortform.com\/app\/book\/principles-life-and-work\/chapter-5#how-to-become-more-receptive\">your goal should be to find the <em>best<\/em> answer to a problem<\/a>, no matter where it comes from. It\u2019s important to judge every source\u2019s credibility, but you should also <a href=\"https:\/\/www.shortform.com\/app\/book\/principles-life-and-work#2-your-blind-spots\">be aware of your own blind spots<\/a> and <a href=\"https:\/\/www.shortform.com\/app\/book\/principles-life-and-work\/chapter-5#3-accept-that-the-best-answers-can-come-from-others\">accept that other people may have better ideas<\/a>.<br><br>Dalio is also a proponent of <a href=\"https:\/\/www.shortform.com\/app\/book\/principles-life-and-work\/chapter-6#extreme-transparency\">extreme transparency<\/a>, to the point that Bridgewater records all meetings and interviews, and makes them available to all employees. <a href=\"https:\/\/www.shortform.com\/app\/book\/principles-life-and-work\/chapter-6#benefits-of-extreme-transparency\">This practice reduces bad behavior and self-serving politics<\/a> while providing teachable examples for staff.<\/td><\/tr><\/tbody><\/table><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>Who should hold the decision-making power in an organization? What&#8217;s the trend in this arena? Some emerging organizations operate from a new set of rules that veer away from hierarchical structures based on power and achievement. The most counterintuitive aspect of these visionary organizations is their approach to making decisions. Continue reading to learn about this revolutionary approach to decision-making in organizations.<\/p>\n","protected":false},"author":9,"featured_media":82084,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[14,30],"tags":[775],"class_list":["post-82068","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-management","category-work","tag-reinventing-organizations","","tg-column-two"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.3 (Yoast SEO v24.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Decision-Making in Organizations: Seek Advice, Not Consensus - Shortform Books<\/title>\n<meta name=\"description\" content=\"The decision-making in organizations that are visionary (&quot;Teal organizations&quot;) is about gathering advice rather than consensus. Learn more.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.shortform.com\/blog\/decision-making-in-organizations\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Decision-Making in Organizations: Seek Advice, Not Consensus\" \/>\n<meta property=\"og:description\" content=\"The decision-making in organizations that are visionary (&quot;Teal organizations&quot;) is about gathering advice rather than consensus. 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