Analysis: A good start is to identify and understand the factors which shape and influence how decisions are made in the organisation
The world of work is changing fast. Companies are dealing with constant pressure to move quicker, cut costs and stay competitive. In such an environment, the ability to make good decisions isn’t just a nice-to-have item on a list, but something which is essential.
However, research shows we’re not doing it very well. Only 24% of managers say their colleagues make well-thought-out decisions. Just 20% of organisations excel at decision-making and up to 98% of managers fail to use best practice when making decisions. Nobel Prize-winning psychologist Daniel Kahneman once said “organisations are decision-making factories.” If that’s true, many of our factories are underperforming.
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From RTÉ Radio 1’s Today with Claire Byrne, saying no at work
What influences how decisions are made?
So how do we improve the quality of our decisions at work? One useful idea comes from public health research and it’s the difference between proximal and distal factors. These are terms used to describe how close something is to the moment a decision is made.
Proximal factors are close to the decision, such as your immediate environment, team dynamics, time pressure and access to information. Distal factors are further away, like company culture, leadership style, industry norms or wider economic and political trends. Both shape how decisions are made, but in different ways. Proximal factors are immediate and often easier to influence. Distal ones are slower to change but just as important.
Understanding these factors is useful, but the next step is asking: which ones can we actually influence? Modifiable factors are those you can change, like how much time you give a team to decide, or how clearly roles are defined in a meeting. Non-modifiable factors are harder to shift, like global economic conditions or deeply rooted cultural norms. Even within your team or organisation, some things will be easier to influence than others.
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From RTÉ Radio 1’s Today with Claire Byrne, what are the factors behind workplace happiness?
How do you spot these factors in your workplace?
There are four good starting points:
(1) The decision maker: what habits, beliefs, or blind spots are in play?
(2) The culture: what gets rewarded or discouraged around here?
(3) The leadership style: is there clarity, autonomy, or too much control?
(4) The context: what’s going on inside and outside the organisation right now?
To uncover these, the following approaches can be very useful:
Observation – watch how decisions are currently made in meetings.
Interviews or focus groups – ask people what helped or got in the way on previous important decisions.
Questionnaires – anonymous surveys often reveal what people really think and factors considered.
Data analysis – track outcomes and identify what patterns emerge.
Once you gather the data, classify what’s proximal versus distal and also what’s modifiable. That’s the starting point for change as you now have greater clarity.
From there, targeted actions like better training, coaching or behavioural nudges can make a real difference. Decision-making isn’t just an individual skill; it’s shaped by the systems and environments we are in and those can be cultivated to work better.
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The views expressed here are those of the author and do not represent or reflect the views of RTÉ
