Decision quality is the goodness of a decision evaluated by the process and information available at the time it was made, rather than by the outcome alone. A good decision made with the best available information can produce a bad outcome; a bad decision can occasionally produce a good outcome. Both should be evaluated by process, not luck.
Decision quality is distinct from decision velocity. The two often trade off — slowing down a decision can improve its quality, but only up to a point. Past that point, the additional deliberation produces no improvement and the cost of delay accumulates.
Measuring decision quality requires written records of the decision context, options, and reasoning at the time. Without those records, hindsight bias dominates the review.
Why Decision quality Matters for Distributed Teams
Most organizational decision reviews focus on outcomes. Reviewing decisions by outcome alone teaches teams to favor safe choices that look good in retrospect, even when bolder choices were better given the information available.
Frequently Asked Questions
What is decision quality?
Decision quality is the goodness of a decision evaluated by the process and information available at the time it was made, not by the outcome alone. A good decision can produce a bad outcome and vice versa. Reviews should focus on process, not luck.
Related Terms
Decision making
Decision making is the process of choosing among options under uncertainty. In organizational contexts, it is rarely the...
Read definitionDecision velocity
Decision velocity is the rate at which an organization moves from open question to committed answer. It is the time betw...
Read definitionDecision documentation
Decision documentation is the written record of decisions made by a team, including the question, the options considered...
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StandIn is built around these concepts. Engineers publish declared state before going offline. The next shift starts with full context.