One of the activities listed under our Minnesota State competency of good stewardship is this: Communicates decisions regarding resources in an effective manner to stakeholders.
As I was thinking about the topic, it raised another question for me – it’s important to communicate decisions, but when and how should stakeholders be involved in the decision making process? A little time on Google resulted in the following observations.
According to the University of Minnesota’s site on civic engagement, involving others in decision making can yield benefits. It can result in better decisions by providing access to more information, more perspectives, and greater mutual understanding. In addition, outside viewpoints can point to deeper understanding of problems that may need to be solved in the future.
A national consulting firm pointed out that involving employees in decision making can help them feel part of the team, improve their own day-to-day decision making, and help them feel more accountable for the decision. In addition, employees who are involved in decisions tend to be more focused on the future and less likely to get stuck in negativity and blame.
That sounds good, but when it comes to financial decision making, some managers are reluctant to involve employees. This article from Sage Communications pointed out both sides of the issue. Practicing “open book” management can increase transparency and a sense of community, as well as generating new ideas. On the other hand, some staff members may experience information overload or may need training and background in order to make suggestions that can be implemented in the organization’s context.
Recently we have seen examples of inclusive decision making related to our long-term financial sustainability. Associate Vice Chancellor Phil Davis and Chancellor Rosenstone have both reached out to the Minnesota State community asking for feedback and providing opportunities for us all to have input into the decision making process.
What advice do you have about communicating financial decisions?
Dee Anne Bonebright