Experts urge simplified operational models to enhance decision-making process
This was the view expressed by speakers at the inaugural edition of the Chartered Institute of Management Accountants (CIMA) CGMA Speaks Series organized in partnership with the Phillips Consulting with the theme: “Joining the Dots: The Future of Executive Decision Making.”
The event which had in attendance corporate executives from indigenous and multinational companies, insisted that leaders must lead by example, while also prompting their employees to realise that they were part of a system in an organisation and not operating as individuals.
They, however, noted that despite the abundant data, the interpretation of information has become less clear in today’s business environment due to the overload of records.
‘We have real-time information about what is happening in our businesses, yet we cannot have real-time assistance with data. That gives us a very different view in terms of what decision-making can achieve and we are going to have a lot to respond to as accountants because we are not comfortable with that,” they said.
President of CIMA, Andrew Miskin, who noted that this wa the era of decision relevance in business, said: “We have got to think about how we make those decisions relevant, and also in terms of decisions, we have got to think about what information is really needed. The question is: ‘what is it you want to decide that changes the information you want?”
Speaking also, Chairman and Chief Executive Officer, Phillips Consulting, Folusho Phillips, noted that while making relevant decisions are important, the ability to articulate, make, and execute them quickly was also a key component in the decision-making process.
His word: “Yes, we’ve got to take good decisions, but once we do take a decision, it is the speed of execution that matters, because it is the manner in which you execute such decisions that would determine the outcome of such programme or plan. It goes beyond taking the decision at the right time; it’s about implementing and making sure that you make that decision relevant. Take good decisions quickly and there is the need to execute them on time.”
The Deputy Managing Director, NEM Insurance, Abisola Giwa-Osagie, said the operating models in in private and public organisations need to be simplified to reduce the bureaucratic mechanism, which is an impediment in the decision-making process.
She said: “It is important for us to know that we need to simplify our operational models. Any system that has a model that is laden cannot be efficient. We need to delegate, we need to empower our people, and we need to trust the decisions that they take. That is very important.”
The Chief Investment Officer/Director, Finance and Investments, Heirs Holding Plc, Sam Nwanze emphasised the need for organisations to institute the right organisational culture in their workplaces to enable them achieve their goals.
“One of the important roles of leadership in an organisation is the shaping of culture, and culture has a very strong impact on how an organisation is perceived. It also determines how decisions are made within an organisation and how the organisation functions.
Everybody is driven in a culture that is geared towards achieving the goals of an organisation. The culture that is set up helps employees to place trust and commitment in how an organisation would eventually function and achieve its goals.