Holistic Organizational Development and Training (HODT Inc.)

Thursday, August 12, 2010

Judgment and Decison Making in Leadership

Judgment and Decision Style in Leadership

By John Errigo, M.S.

Good judgment is the hallmark of a good leader. All leaders must make decisions on a constant basis. It is fundamentally connected that leaders must make good decisions in order to be an effective and productive leader. “Leaders most important role in any organization is making good judgments –well informed, wise decisions that produce the desired outcomes. When a leader shows consistently good judgment, little else matters (Tichy & Bennis, 2007).” The success of a company rests upon the decisions of a leader. A leader can also make bad decisions, but “the most effective leaders make a high percentage of successful judgment calls, at the times when it counts the most (Tichy & Bennis, 2007).” It is impetrative to the success of an organization that a leader is able to make successful judgment calls. How does a leader make successful judgment calls? Mostly, a good judgment call comes from a leader’s intuition. “Judgment was used when decision makers applied their intuition to select among courses of action without explaining (or being able to explain) their reasoning or rationale (Nutt, 1998).” Good judgment comes from the leader’s core intuition and sometimes cannot be explained. This type of judgment comes from experience and having a record of making good decisions based upon good judgment.

The judgment a leader makes is just the beginning phases of a decision. “Successful leaders make their calls in the middle of a process that unfolds over three phases. First is preparation, during which leaders sense and frame the issue that will demand a judgment call, and align their team members so that everyone understands why the call is important. Second is the call itself, the moment of decision. And there is execution –making it happen while learning and adjusting along the way (Tichy & Bennis, 2007).” Making a good judgment is a very complex process and involves many more dimensions than just making a good decision. A leader will be able to make a good judgment in many situations and within a variety of contexts. There may be distinct opportunities where a leader can adjust their judgments and have a different impact than intended

“Leaders may not be able to change their call, but they can almost always change course during execution if they are open to feedback and committed to follow-through. Indeed, good leaders can take advantage of ‘redo loops’ which can occur throughout the process (Tichy & Bennis, 2007).” It is important to note that good judgment is important, but the manner in which it is executed is equally important. “A judgment that is not successfully executed is failed judgment no matter how smart the strategy (Tichy & Bennis, 2007).” Decisions made by leaders are important and the judgment they show is also important, but the execution is what matters most. There is not a set prescribed method in a judgment call or a subsequent execution. Leaders must also adapt to their environment and must show their unique positions based upon their personalities and leadership profiles when making a decision.

All rights reserved (2010) and my not be duplicated or refernced without written permission of author: John Errigo, M.S., by corporate authorization, HODT, Inc. (synergy@hodtinc.com)