Leading by Using the Advice of Others: How to Build the Right Organisation for That

What is it about?

When senior executives seek advice to form their judgment on strategic issues, the quality of their decisions improves. This research is about understanding the right environment for this to happen more often. The first factor is a structured decision making process. This means having an organization-wide system that tracks and collects relevant information and enables the generation of multiple decision alternatives. Having this process can lift some critical barriers in front of leaders to seek advice, such as the fear of appearing incompetent. When the whole organisation is committed to finding the best solution, senior executives are more open to recommendations by both external and internal advisors. The other important factor that we found is the culture of empowerment within the organisation. Empowerment involves more autonomy and responsibility given to the lower levels. In organisations with such cultures, the need for a systematic decision making process is somewhat substituted. Leaders can share more of the burden of making complex decisions with others.

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Why is it important?

For the first time we look closely at how the organisation in which leaders operate has a direct effect on their decision making in terms of their willingness to seek advice. This is important, because we often associate leadership with the qualities of the person or the team. We show that the organisation, with its processes and culture, also affects leaders' behaviours. Another important finding is that leaders can actually also shape a more comprehensive decision making process. That is beneficial because it not only allows the organisation to make use of new developments outside of it, but it makes the strategic task of leaders less demanding and a shared responsibility.

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