Is This Any Way To Make A Decision?

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Executive Summary

Informal networks can play a pivotal role in how organizational decisions are framed and executed. But they can also result in too much collaboration - the kind of lengthy and expensive decision making that can cost companies dearly in missed opportunities. Bad decisions waste management's time, cost a tremendous amount of money (which often goes undetected on the balance sheet) and slow innovation to a crawl. But in their efforts to identify and correct inefficient and ineffective decision-making processes, executives frequently overlook a key factor: the role of informal networks, especially those involving senior leaders, in the way decisions are framed and carried out.

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