High Performance Teams Part 3

This is a four part series outlining Tips for Running a Family Business by creating High Performance Teams.

Part 1 Types of Teams
Part 2 Team Key Elements and Keys to Success
Part 3 The Decision Making Process
Part 4 Developing Empowerment and Boundary Management

The way a team decides to decide is the most important decision it makes. The team must decide, in advance on how the team will decide. The Ownership circle of the 3 Ring Family Business Model sets the guidelines on decision making.



Decision Definitions


Here are the most appropriate Decision Processes and Definitions for Family Business. Note that some are neither appropriate nor desirable in all circumstances.


Consensus


Compromise is used so every team member can agree with and commit to the outcome. This produces innovative decisions, but can be time consuming.


Majority Rule


A simple Majority agrees upon the decision. This allows a quick decision process but can only be successfully used for routine and administrative issues.


Minority Rule


This usually takes the form of a subcommittee that recommends actions. If is appropriate for decisions that require special expertise that may only be in the minority of the team. However it does not use all team members’ capabilities and therefore should be used infrequently.


Authority Rule without Discussion


Decisions are handed down from Ownership. This is best for administrative needs or for emergency situations that do not allow for an elongated decision process. The downside of this process is that one person never can be knowledgeable for all decisions and is not taking the collective knowledge of the team.


Authority Rule with Discussion


This process is a hybrid. Those with decision making authority make it clear that they have the authority. They start by gathering all team member inputs. The final decision is made with team member input and leader lets team members know the decision and how their inputs affected the decision. This requires good communications skills between decision makers and team members.

Example Decision Making Process


You can download an example of a Decision Matrix and Escalation Matrix outlining a process that allows a Family Business to institute a High Performance Team. It spells out in detail what each decision process can do and where it is escalated to the next process.

High Performance Teams Part 4 covers Developing Empowerment and Boundary Management


All the best!
Dom Celentano
Tips on Running a Small Business