What: McKinsey advocates for organizations to be able to make faster decisions in order to boost productivity.

Why it is important: For them, it goes through facilitating productive debates, having a clear process to make decisions, and being able to delegate some of them. This however raises the question of the tools that need to be implemented to facilitate such a climate.

A survey conducted by McKinsey with over 1,200 managers from various global companies highlights growing dissatisfaction with decision-making processes. The slow pace, lack of effectiveness, and uneven quality of outcomes have frustrated senior leaders. Fewer than half of respondents believe that decisions are timely, and 61% consider at least half of their decision-making time ineffective. This inefficiency can cost a typical Fortune 500 company around 530,000 days of managers' time annually, equivalent to approximately $250 million in wages. The dissatisfaction arises from issues such as lack of real debate, convoluted processes, information overload, unclear roles, and consensus-driven cultures.

The study focuses on three main categories of decisions: big bets, cross-cutting decisions, and delegated decisions. For each category, the study identifies a standout practice that can significantly enhance decision quality and speed.

1. Big Bets - Facilitate Productive Debate: The study emphasizes the importance of fostering healthy debate in decision meetings, particularly for critical, future-shaping decisions. Encouraging diverse viewpoints, challenging assumptions, and creating a safe space for dissent can lead to better outcomes. Effective debate was found to be the most predictive factor for good and fast big-bet decisions.

1. Cross-Cutting Decisions - Understand the Power of Process: For decisions that involve multiple functions and departments, a well-coordinated process is crucial. Clarifying objectives, measures, roles, and responsibilities helps streamline cross-cutting decisions. Improving meeting discipline, distinguishing between decision-focused discussions and informative discussions, and managing participants' numbers are important steps.

1. Delegated Decisions - Make Empowerment Real: Empowering employees closest to the work to make decisions leads to faster, better, and more efficient outcomes. Creating an environment where employees can "fail safely" encourages experimentation and innovation. An "all-in" culture that encourages commitment from all levels of the organization enhances decision implementation.

The study also emphasizes the importance of fostering commitment after decisions are made, particularly in consensus-driven cultures. Encouraging an "all-in" culture and ensuring that decisions align with the company's strategy and value-creation agenda are essential for effective implementation.

Three keys to faster, better decisions