Leadership: Consider the Ripple Effect

When a stone is thrown into a pond, it causes ripples in all directions. When a leader considers an action, he or she must also consider the ripples, in terms of production, operations, staffing and scheduling, finance, marketing, public relations and more. What are the implications of the idea? What would be the best time-line to put the idea into effect, considering the needs of a team involving all relevant departments?

If a leader is coaching his employees, he should also ask them to consider the effects of their ideas, before telling him about the ideas. Employees would learn to consider all aspects, and less suitable ideas would be eliminated before talking to leadership.

Ripples can also be found in other business decisions. For example, if a mortgage lender decides to request additional information right before a scheduled closing, thus delaying a closing, this can cause significant ripples in the lives of those affected: the buyer and seller, the realtors, the utility companies that provide services, the moving companies that have to reschedule a move, etc.

If a small business owner decides to coach his top 3 employees to achieve more or do their jobs more effectively, and then later asks them to do the same for their direct reports, this can have a ripple effect too. Employees may become more enthusiastic about assuming new duties or doing them to higher standards. Retention may increase, as may employees' positive comments about the organization.

When you make decisions inside your sphere of influence, what ripples can they cause? What other groups' or departments' needs do you need to take into account? What impact could your decision have on others?

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Is decision-making difficult for you?

Many managers and executives struggle with making good decisions. They often are concerned they have not considered all the angles. Here is a simple decision-making model for important decisions.

Consider PANOAPT: Positives And Negatives, Other options, Additional information needed, People/processes affected by the decision, Time-line for action.

If you are a CEO, manager or executive, what do you think of this model as it relates to your work or industry?

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