All the Wrong Moves, Case Study Analysis
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Decision making critical issue analysis of the HBR case study, All the Wrong Moves, by David A. Garvin....
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All the Wrong Moves Case Study Analysis
Nanci Edmond Kevin Hannon Stephanie Maras Khalil Muhammad Rachel Rufer
Don Rifkin does not want to appear dictatorial and actively avoids conflict. Instead, he fostered an open, participatory decisionmaking process at Nutrorim. He simply convenes committees who propose solutions that are forwarded to senior management for a vote. However, his one method has yielded uneven, and often untimely, results. Rather than achieving true consensus, his groups simply lack divergent viewpoints that generate multiple solutions. By excluding Steve Ford from the recall committee, he lost the opportunity to engender healthy conflict. Don does not engage himself, observing Laurence Wiseman’s advocacy for Dipensit without encouraging the subcommittee’s apprehensions against it. In effect, he has become a decision facilitator instead of a decision maker. This evidence points to the critical issue at Nutrorim: Don needs to embrace alternative decisionmaking styles. Decisionmaking by committee is not effective in all situations, and he must evolve beyond it. He is so singularly focused on maintaining a democratic culture he sacrifices timely, effective decisions for superficial, groupthinkled consensus. We believe Don is capable of expanding his decisionmaking tool kit (Argyris 61). Cooperation with the boardhired consultant, Gibson Bryer, indicates an openness to change. We will capitalize on the process review by having the consultant work intensively with Don on developing alternative decisionmaking styles. A multiday retreat with Bryer will inculcate the specific solution process outlined below to augment and improve his decisionmaking style. Bryer would serve as our conduit for these solutions. First, Bryer needs to address Don’s selfawareness. Don’s encounter with a tyrannical boss drives his overreliance on committees for even basic decisions. He thinks he’s the kind of democratic CEO he values without realizing he’s jettisoned two critical components– decisionmaking and accountability– to others. Bryer will reiterate to Don that while there’s appreciation of his inclusive style, it is not a panacea for all decisions. Instead, Bryer will emphasize unilateral decisionmaking is consistent with Don’s position, not dictatorial. It is essential for decisions that require bold leadership, quick action, and divergent solutions. Bryer will then perform a “lookback” at the recall decisionmaking process with Don to expose the flaws of his current solutionbycommittee consensus approach (Davenport 190). He will point out that a committee was a wise move but poorly executed. He will show Don that he should have constructed a team of the mostrelevant, experienced stakeholders, including Ford. Diversity, not avoidance of adversity, should always be promoted to engender decisive dialogue that explores multiple options with candor, informality, openness, and closure (Charan 60). Instead, Don avoided conflict by assembling a crossfunctional team that sidestepped the inquiry process, succumbing to groupthink. In addition to creating a more diverse committee, Bryer will instruct Don to lead future major decision
discussions to push committees to consider all options and moderate advocacy from the “squeakier wheels” (Garvin and Roberto 114). Bryer will next begin what Thomas H. Davenport calls a decision “intervention” to expand and improve Don’s decisionmaking process (187). First, Bryer will have Don identify and prioritize pending decisions. Next, Don will inventory each decision’s components, including identifying stakeholders, roles, gathering information, and determining how routine the decision is (Davenport 189). They will brainstorm decisionmaking alternatives to his standard, integrative approach, identifying triggers highlighted by the inventory process. Essentially, Bryer will coach Don to “decide how to decide” (Davenport 189). Bryer’s presentation revealed Don’s inclusive decisionmaking sacrificed timeliness if its outcome yielded winners and losers. After determining the magnitude of the decision to be made (money involved, diversity of stakeholders), Don could apply his inquirydriven, committee process to major decisions and send its solution to the senior managers. If gauged particularly time sensitive, he must confront conflict headon in meetings, then employ a unilateralbygroup decisionmaking method. Conversely, Bryer found the committee process worked when there was a certain amount of predictability. Such routine decisions can be even more efficiently called by Don unilaterally after gathering basic information. Brousseau et al. discuss how executives can be categorized based on their use of information. Don’s hierarchic approach, maximizing information gathering but tending toward a singular solution, is outmoded. His overlyoptimistic view of committees can skew outcomes toward groupthink. Being more directly decisive will reinforce Don’s role as the leader of Nutrorim and mentor a new, integrative decisionmaking culture. To gauge Don’s progress developing and applying new decisionmaking styles for different situations, he and Bryer will conduct monthly lookbacks for one year to dissect and evaluate decision effectiveness. This will constitute examining outcomes in light of Davenport’s inventory process. We anticipate resistance from senior management to Don’s new, more engaged decisionmaking process. Used to calling final decisions by majority vote, Don’s utilization of unilateral decisionmaking will occasionally disenfranchise them. Also, by integrating strong personalities like Wiseman and Ford into decisionmaking committees, Don will challenge their positions via the inquiry process. It should be accepted that some managers may quit. Similarly, Nutrorim may also suffer a drop in general morale. Don’s inclusive decisionmaking style was valued, and his new process may alienate the employees satisfied with the status quo.
Fortunately, as communication and inclusion are Don’s strong suits, these obstacles may be overcome. Don could release a memo briefly outlining the findings of Bryer’s process review and citing a need for change for the good of the company. He could then facilitate meetings which lead to what many employees already know he must be a bold leader on certain types of decisions. Our solution to Don’s decisionmaking problems depends on his willingness to change. He will need to curtail his forays into different departments and focus on his decisionmaking process. Moreover, he may decide that unilateral decisionmaking runs counter to his strong belief in a participatory democracy and decide to leave rather than alter Nutrorim’s culture. Or, after his oneyear evaluation period, he may prove unable to change, and the board may need to take action to remove him as CEO. However, we believe Don is invested in Nutrorim’s success. The outlined process will convince him that Nutrorim’s future success depends on the expansion of his decisionmaking style.
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