- •Ingredient. The company’s
- •Ing that the small company might make
- •It stalls.”
- •To Everyone’s Taste?
- •Calling All Volunteers
- •45 Minutes methodically addressing the
- •Just Make a Decision!
- •Install irm management rules and
- •Important benefits. First, he would create ac-
- •Decision making
- •Decision making
- •Ings. In a group meeting, he could say, for ex-
- •In Basking Ridge, New Jersey.
Decision making
“What’s the right decision-making process for
Nutrorim?” raises another question: “What’s the
right decision-making process for Don Rifkin?”
I
Ralph Biggadike (rb317@columbia.edu) is a professor
of professional practice in
the management division of
Columbia Business School in
New York.
agree with Gibson Bryer that the current
decision-making process at Nutrorim
seems to work fine for decisions with some
built-in predictability but not for those with
clear winners and losers. Day-to-day opera-
tional and procedural issues are one thing;
important problems or strategic matters that
involve conflict or debate are quite another.
And when it comes to the latter, the process
at Nutrorim is broken.
The problems with the decision-making
process at Nutrorim stem primarily from
Rifkin’s aversion to conflict. He believes that
he keeps the process open and asks for input,
but he doesn’t realize that his approach to
building a friendly culture squelches dissent
and debate. He’s trying to build a “nice” cul-
ture by making it homogeneous, and that’s
causing trouble. Murmurs go unaddressed,
opinions are unbalanced, top managers feel
increasingly frustrated, and bad decisions are
the norm. Hence, the final question–“What’s
the right decision-making process for Nu-
trorim?”–raises another question:“What’s the
right decision-making process for Rifkin?”
It would help if Rifkin could view conflict
as an important source of energy and see
that it’s his responsibility to understand all
sides of an issue. To do this, he needs to ex-
plore his own issues first. If I were coaching
him, I would begin by asking him why he
hasn’t investigated the “murmurs” he’s over-
heard, and why he chooses to deal with con-
flict in private rather than in public. I might
ask,“How has the decision to take things off-
line helped you in the past? What are the
benefits and drawbacks of doing things this
way?” The difficulties he’s had with his man-
agers reflect his aversion to conflict. All lead-
ers face people like Steve Ford from time to
time. Commitment and passion are worth
encouraging in direct reports, but assertive-
ness and conviction can have their down-
sides. To become more comfortable dealing
with people who possess these qualities, par-
ticularly in group settings, Rifkin needs to
get away from his and others’ personal feel-
Ings. In a group meeting, he could say, for ex-
ample,“We’ve heard a strong case for Y. Does
anyone else have data or experiences that
might suggest another approach?”
Rifkin should also take a good, hard look at
the way he selects members of his subcom-
mittees. In his desire to avoid disagreements,
he seems to seek out homogeneity. Public re-
lations and legal, for example, are corporate
kindred spirits, and leaving the head of R&D
out of a discussion on a product recall looks
a lot like deck stacking. If Rifkin wants a better
balance of views and, hence, better decisions,
he should choose members more carefully.
Nora Stern makes an important point
when she says that in her former company,
debate was held out in the open, and differ-
ences were worked out in the group. Follow-
ing this example would cut down on the frus-
tration among Rifkin’s managers, reduce
lobbying, and bring to light some key opin-
ions. I recommend that Rifkin use subgroups
to gather data, identify assumptions, and cre-
ate options. Each subgroup should report
regularly to the larger group, which can then
debate a given issue’s pros and cons. These
groups can be set up like teams of lawyers,
with one critical exception: Those individu-
als with the strongest opinions should argue
the case for the opposing side. This kind of
decision-making structure can go a long way
toward unearthing the opinions of all in-
volved, including those who feel left out, and
toward building the kind of balance Rifkin
needs to develop in his company.
I would stress to Rifkin that he has two pri-
mary responsibilities: to guide the decision-
making process so that all the data, opinions,
assumptions, and options are identified and
fairly discussed, and to make the final deci-
sions. It would also help if he explained the
reasoning behind his decisions to his direct
reports.
W
hat’s the Right Decision-Making Process for Nutrorim? >> C A S E C O M M E N TA R Y
N
utrorim needs a serious reality check.Nora Stern, as the outsider, is the voice
of reason when she notes that there is too
much navel-gazing at the company. Too
many people, including Rifkin, are operat-
ing on hunches and gut reactions that could
put the company at risk. Rifkin abdicates his
responsibility when he fails to sponsor a
learning organization that builds knowledge
as a competitive advantage. He needs to
show leadership and a willingness to make
decisions.
The stock purchase is a perfect case in
point. The CFO, Laurence Wiseman, may
have his talents, but it seems he pushed
through the decision to purchase stock in
Dipensit without exercising due diligence.
Investing in a company is like buying a
house: One makes the purchase decision
based on a combination of hard factors such
as price, condition, and school system, as
well as soft factors such as general impres-
sions, conversations with neighbors, and so
on. It is inexcusable that Rifkin allowed share-
holders’ money to be spent on a stake in
Rifkin can’t allow his team members to
create their own versions of reality. For exam-
ple, Ford, the R&D head with vested inter-
ests and a difficult personality, prevents
people from having candid conversations
when they are most needed – during times
of crisis. Rifkin needs to buckle down and
make it clear to Ford and everyone else that
they will be held accountable for their ac-
tions and their results and that no one gets to
steamroll others. Without this rule, the com-
pany can only react after the horse has left
the stable.
To ensure better decision making, Rifkin
should work hard to create a culture that re-
wards on the basis of unit performance as
well as individual contributions. He should
spend more time developing leaders – I like
to think of them as mini-CEOs – who have a
passion for results and understand how their
actions affect the company. Rifkin’s job is to
monitor his managers’ progress, motivate
them, and give them feedback. He should
make sure that results are openly celebrated
and that when failure occurs, everyone learns
Paul Domorski (pdomorski@
avaya.com) is the vice presi-
dent of service operations at
Avaya, a communications
network and service provider
