Understanding exactly how you come to a decision is a complex undertaking. Understanding how organizations make decisions is even more challenging! However, when you understand how organizations make decisions you can lead more effectively.
Both effective and ineffective organizations make decisions. What is of interest to organizational leaders is understanding whether their decision making processes lead them to make good or bad choices. Organizational anarchy is a term used to describe organizations that have a poor decision-making environment. This model gives us a means of discovering how to avoid bad decisions. Researchers have discovered that organizational anarchies share three common ingredients.
Most of us have worked in situations that can be described as an organizational anarchy. In fact, organizational anarchy will describe a portion of almost any organizations activities (Cohen, March & Olsen). However, the model of organizational anarchy presents us with a simple litmus test to examine our decision-making culture. Understanding the ingredients of healthy organizations is not complex. However, they are much more difficult to implement. But drifting into organizational anarchy is a much higher price to pay than the cost of investing in goal definition, process clarity and role definition.
Jeff Suderman is an anti-anarchist, consultant and professor who works in the field of organizational development. He partners with clients to improve culture, leadership, teamwork, organizational alignment, strategy and organizational future-readiness. He resides in Palm Desert, California. Twitter: @jlsuderman
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