Hi! Managers: Process of converting crisis into opportunity

The financial crisis over the past several months has forced many companies to reconsider key elements of their business strategy. When demand is strong, it hides inefficiencies. But as the level of revenue drops, those inefficiencies begin to show and crises arise. But crises offer opportunity. Rather than discuss specific crises, I'm going to review a few critical characteristics of the decision-making process.  The focus is on larger decisions that would impact the broader organisation.

Team selection: The decision-making process should, to some level, be a team activity.  The senior executive and facilitator should select the team members from a broad range of backgrounds.  They need to be empowered as "sceptical generalists". That means they should consider the alternatives sceptically from a general perspective and not limit their input to the organisation they represent.

Culture: The team members must feel and the team must be managed such that there is an absence of hierarchy. Open discussion of the alternatives must occur. And yes, that means there should be conflict in the meetings.  Not personal conflicts but conflicts that focus on the topic of discussion. A key role of the facilitator is to solicit input, force debate but keep the conflict constructive and not personal.

Process: If the broader team can outline two key alternatives for consideration, it helps to break into subgroups, with each subgroup exploring an alternative. After study, each subgroup should present their recommendations to the other subgroup.  The other subgroup then needs to critique the recommendations.  With this input considered, the overall team can either present the two alternatives to the senior executive for decision or make an overall team recommendation for senior executive approval.

Senior executive role: Very importantly, the senior executive (or decision-maker) should be absent from the meetings where the alternatives are being developed. If the team senses, or misinterprets, a senior executive's preference, the alternatives will not be fully explored by the team. And, in many cases, dissenting opinions will not be raised.  In the end, the senior executive needs to make the decision, either by ratification of a recommendation or by making the decision outright from alternatives presented.

Small decisions would not require all the characteristics referenced. But, impactful decisions that will affect the broader organisation or company should be managed systematically.  Crisis can lead to opportunity. And better decisions enable a higher likelihood of realising the opportunity.

Jeffrey D Nygaard is vice president & country manager of Seagate Technology. Follow his article every fourth Monday of the month.