🔒Strategies to solve your toughest problems at work

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“Managing in the Gray — 5 Timeless Questions for Resolving Your Toughest Problems at Work” by Joseph L. Badaracco (Harvard Business Review Press, $35).

With so many internal and external variables involved, many business decisions aren't black and white choices. In such situations, judgement (i.e. balancing the analytical and human sides of decisions) comes into play when “making the call.” Badaracco offers “tools for judgement” in the form of five questions to answer when faced with challenging decisions:

1. “What are the net, net consequences?” The standard mostly analytical approach to decision-making says look at options, assess their likely outcomes (i.e. solve the problem) and try to find the best option. Badaracco's “net, net” takes the process deeper on the human side of options by asking “what you will be doing for other people and to other people.” The answer forces you to think about consequences of choices — both inherent and unintended.

2. “What are my core obligations?” A manager's duties include maximizing economic return to the firm. That said, a manager should recognize that tradeoffs must be considered when it comes to the impact on employees. They aren't machinery; employees are the intellectual capital that's the backbone of every business. They trust that they will be treated fairly. Trust, once lost, is difficult to regain. As such, take a “future” view of the impact of decisions on staff. “Throwing the baby out with the bathwater” will impede future growth.

3. “What will work in the world as it is?” George Doriot, widely regarded as “the father of venture capital” gave managers this advice: “If you have to choose between a great strategy with a good action plan and a good strategy with a great action plan, you should pick the second option. Keep asking what choices deal best with the reality of execution.

In that regard, Badaracco points out the decision-making process can be colored by the self-interest, power and authority of others. The “coloring” process starts with their initial input, continues through selection of alternatives and influences the final decision. Because outcomes always depend upon buy-in, managers should assess the perspectives of the others early on and find ways to address their interests throughout the process. It's about showing others that organizational win doesn't mean a loss for them.

4. “Who are we?” Stressing the “we” reminds managers that all decisions affect working relationships. They were built upon a shared past, and with an eye on a shared future. Managers work hard to ensure that everyone's on the same page. While the “same page” results in strong relationships, it can cause problems when making gray-area (i.e. have to turn the page) decisions. Because of team strength, a manager has to consider “which norms and values matter most” throughout the decision-making process.

Badaracco makes this point with this example: There's a burning building. On one side is your child; there are three children on the other side. You can't save them all. Whom do you sacrifice?

5. “What can I live with?” Gray areas come with difficult choices and trade-offs. The answers to the first four questions form a foundation for sound decisions — “on the basis of a manager's convictions, judgement, and a sense of what's right for the organization in a particular set of circumstances.” The answers also define what's at stake and the challenges of problem resolution when there are numerous stakeholders.

Remember: “Gray-area problems are the core of a manager's work.” Successfully dealing with them sends an 'I'm ready for the next challenge' message to your boss.

Jim Pawlak is a nationally syndicated book reviewer.