How Noisy is Your Organisation?
What is the noise level like in your organisation? Is there peace and quiet or a buzz of activity? Now consider the question from a different angle because I am not actually asking about the volume level, but rather the level of noise around decision making.
We have probably all faced situations in business where a handful of people who are asked the same question and given the same set of facts and information, will answer the question differently for a host of reasons. In fact, research has shown that the same individual may even make a different decision based on their mood or even because of the weather. Sounds outrageous doesn’t it!
Yet it exists and according to the research, the level of noise in many organisations is invisible and much greater than people realise. In business, noise can potentially cost millions of dollars from making bad choices or can result in missing out on good opportunities.
A couple of suggested strategies to address this phenomenon include undertaking a ‘noise audit’ to measure the level noise and the second is to introduce or improve systems and procedures that govern decision making processes. In a sense, to create more objectivity and strategically controlled discipline.
Reference: “Inconsistent Decision Making is a Huge Hidden Cost for Many Companies. Here’s How to Overcome What We Call Noise”, Daniel Kahneman, Andrew Rosenfield, Linnea Gandhi and Tom Blaser, Harvard Business Review, October 2016.
What is the noise level like in your organisation? Is there peace and quiet or a buzz of activity? Now consider the question from a different angle because I am not actually asking about the volume level, but rather the level of noise around decision making.
We have probably all faced situations in business where a handful of people who are asked the same question and given the same set of facts and information, will answer the question differently for a host of reasons. In fact, research has shown that the same individual may even make a different decision based on their mood or even because of the weather. Sounds outrageous doesn’t it!
Yet it exists and according to the research, the level of noise in many organisations is invisible and much greater than people realise. In business, noise can potentially cost millions of dollars from making bad choices or can result in missing out on good opportunities.
A couple of suggested strategies to address this phenomenon include undertaking a ‘noise audit’ to measure the level noise and the second is to introduce or improve systems and procedures that govern decision making processes. In a sense, to create more objectivity and strategically controlled discipline.
Reference: “Inconsistent Decision Making is a Huge Hidden Cost for Many Companies. Here’s How to Overcome What We Call Noise”, Daniel Kahneman, Andrew Rosenfield, Linnea Gandhi and Tom Blaser, Harvard Business Review, October 2016.