The idea behind agile governance is to establish both stable and dynamic elements in making decisions, which typically come in three types. We call big decisions where the stakes are high Type I; frequent decisions that require cross-unit dialogue and collaboration, Type II; and decisions that should be parsed into smaller ones and delegated as far down as possible, often to people with clear accountability, Type III.
It is Type II topics that most often hinder organizational agility. Companies that have successfully addressed this problem define which decisions are best made in committees and which can be delegated to direct reports and to people close to the day-to-day action. They also establish clear charters for committee participants and clarify their responsibilities—avoiding, in particular, overlapping roles. This is the stable backbone. But these companies also make speedy decisions and adapt to changing circumstances: they dynamically rotate individual members of such committees, hold virtual meetings when necessary, and spend their meetings engaging in robust discussion and real-time decision making rather than in sharing information through endless presentations, many dealing with issues that have already been resolved.
Authors: Aaron De Smet, Kirsten Weerda, Wouter Aghina
Source: McKinsey Quarterly
Subjects: Decision Making, Management, Organizational Behavior
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