In today's rapidly evolving world, companies are constantly faced with the challenge of making decisions that not only align with their vision and strategy but also address the fundamental questions of "How are we going to build this" and "Why are we building this." This is where the concept of "the Decision Stack" comes into play. The Decision Stack refers to a set of principles that guide decision-making within an organization, making the company's values actionable.
Hatched by Aviral Vaid
Jul 17, 2023
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In today's rapidly evolving world, companies are constantly faced with the challenge of making decisions that not only align with their vision and strategy but also address the fundamental questions of "How are we going to build this" and "Why are we building this." This is where the concept of "the Decision Stack" comes into play. The Decision Stack refers to a set of principles that guide decision-making within an organization, making the company's values actionable.
One key aspect of the Decision Stack is that it should be a shared responsibility, created from both the bottom up and the top down. This means that principles should not only be dictated by top-level management but also developed through open discussions and retrospectives within teams. By using retrospectives, teams can identify the recurring debates and discussions they have, as well as the trade-offs they continually face. These insights can then be transformed into valuable principles that guide decision-making.
On the other hand, principles should also be reinforced from the top down. It is essential for the company's strategy to be articulated through principles that define the acceptable trade-offs necessary for success. By explicitly stating the trade-offs that the organization is willing to make, decision-makers can ensure that their actions align with the overall strategy. Similarly, by identifying what the company is not going to do, decision-makers can avoid wasting resources on non-essential pursuits.
But why is all of this important? The answer lies in the concept of "Intelligence Superabundance." Rather than viewing the rise of artificial intelligence and automation as a zero-sum competition with machines, there is a growing realization that we are on the cusp of a future where human intelligence is complemented and enhanced by intelligent technologies. In this future, decision-making will be a collaborative effort between humans and machines, leveraging the unique strengths of each.
In order to thrive in this era of Intelligence Superabundance, organizations must develop a decision-making framework that embraces both human expertise and machine intelligence. This means that principles should not only reflect the company's values and strategy but also incorporate the potential of intelligent technologies. By doing so, organizations can harness the power of automation and AI to augment human decision-making, leading to more informed and effective choices.
So how can organizations put these ideas into action? Here are three actionable pieces of advice:
- 1. Foster open communication and collaboration within teams. By encouraging regular retrospectives and discussions, teams can identify the key debates and trade-offs they face. This will enable them to develop principles that address these challenges and provide actionable guidance for decision-making.
- 2. Continuously align principles with the company's strategy. Regularly reassess the principles in light of the evolving business landscape and the potential of intelligent technologies. Ensure that the principles explicitly state the acceptable trade-offs and what the organization will not pursue in order to achieve strategic success.
- 3. Embrace the potential of intelligent technologies. Rather than viewing AI and automation as a threat, see them as tools that can enhance human decision-making. Explore ways to integrate intelligent technologies into the decision-making process, leveraging their capabilities to gather and analyze vast amounts of data, identify patterns, and provide valuable insights.
In conclusion, the concept of the Decision Stack emphasizes the importance of developing principles that make the company's values actionable. By creating principles from both the bottom up and the top down, organizations can ensure that decision-making aligns with the company's vision and strategy. Furthermore, by embracing the potential of intelligent technologies, organizations can thrive in the era of Intelligence Superabundance. By following the actionable advice provided, companies can enhance their decision-making processes and position themselves for success in the ever-changing business landscape.
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