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Executive Interviews: Interview with David J Snowden on Decision Making
May 2008
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By Dr. Nagendra V Chowdary
David J Snowden Adjunct Professor of Knowledge Management at the University of Canberra. 
Simple contexts, are characterized by
stability and clear cause-and-effect
relationships that are easily
discernible by everyone. Often, the
right answer is self-evident and
undisputed. In this realm of 'Known
Knowns', decisions are
unquestioned because all parties
share an understanding.
Complicated contexts, unlike simple
ones may contain multiple right
answers, and though there is a clear
relationship between cause and
effect, not everyone can see it. This is
the realm of 'Known Unknowns'.
While leaders in a simple context
must sense, categorize and respond to
a situation, those in a complicated
context must sense, analyze, and
respond.
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Complex context, has at least one right
answer. In a complex context,
however, right answers can't be
ferreted out. This is the realm of
'Unknown Unknowns', and it is the
domain to which much of
contemporary business has shifted. The Chaotic context, searching for
right answers would be pointless:
The relationships between cause and
effect are impossible to determine
because they shift constantly and no
manageable patterns exist only
turbulence. This is the realm of
unknowables.† -
How should these four contexts'
purport be interpreted for
governmental and non-governmental
leaders? What do these contexts
mean for them? What relevance do
these contexts have for them?
There is no difference in the
application of the theory, but there is
a difference in the urgency. The main
challenge is to provide more services
to an increasingly demanding
population with less resource.
Managing a complex environment as
if it was simple or complicated means
that we waste money; understanding
that something is complex and using
the correct experimental approach
reduces the cost and increases the
range of viable options which will
emerge. What is the role of business
schools in preparing better decisionmakers?
What specific steps do you
suggest for business schools in terms
of designing their curricula?
Far too much of their work assumes
that all systems are complicated. Case
studies should be limited in their use.
Business schools need to bring in
assets from natural sciences and the
humanities to add value to their
teaching. They need to reduce the
amount to which they teach
conventional approaches, increase
the range of novel ideas. At the moment they are locked into a 19th
century concept of science and need
radical reform. There's enough literature on
decision-making styles and traits of
effective decision-makers. But, what
according to you are the prerequisites
for effective decision-making?
'Styles and traits' is the wrong way to
think about decision-making.
Different styles work in different
spaces, context can create traits. The
question assumes a traditional causal
model. It is the wrong question. As to
prerequisites then the most important
thing is to be aware of different
contexts (see the Cynefin framework)
and know when to make decisive
decisions, and when to stand above
the situation and allow systems to
evolve. How do you think the leader's
personal ethics and value systemplay
a role in effective decision-making?
Major lack of moral integrity leads to
bad leadership. When things become
difficult having a clear value systemto
fall back on is key.
Note: The answers with † were excerpted and reprinted
with the permission of Harvard Business
Review from "A Leaderís Framework for Decision-
Making" by David J Snowden and Mary E Boone,
November 2007. Copyright © 2007 by HBS Publishing; All Rights
Reserved.
1.
Decision Making Case Study
2. ICMR
Case Collection
3.
Case Study Volumes
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The Interview was conducted by Dr. Nagendra V Chowdary, Consulting Editor, Effective
Executive and Dean, IBSCDC, Hyderabad. This Interview was originally published in Effective Executive, IUP, May 2008. Copyright © May 2008, IBSCDC
No part of this publication may be copied, reproduced or distributed, stored in a retrieval
system, used in a spreadsheet, or transmitted in any form or medium electronic,
mechanical, photocopying, recording, or otherwise without the permission of IBSCDC. |
