Complex Decision-Making

Johannes Strikwerda ()
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Johannes Strikwerda: University of Amsterdam, Amsterdam Business School

Chapter 7 in Organized Complexity in Business, 2023, pp 139-173 from Springer

Abstract: Abstract The conventional tactics to solve complex decisions by reductionism falls short to deal with the new complexities. Successful CEOs use abstract thinking and reconceptualizing to make effective decisions in new complex situations. The conventional paradigmatic model of decision-making applies to well-structured problems, which are to be found in operations, but not at the level of strategy and governance. A decision-problem that can be solved through a calculation or algorithm, as pretended in AI, is not a decision-problem, but a calculation. More data in itself does not solve complex decisions nor does it result in better decisions, except within the limitations of a well-structured problem, what are rare. A decision-problem is a state-of-mind acknowledging that existing routines, practices, heuristics, and concepts are incapable to provide the insight needed for new situations and reconceptualization is needed. What is needed is integrative complexity to open up the limitations of cognitive complexity (Sect. 6.3.3 ) This chapter presents a taxonomy of complex decision-problems, like professional induced complex decision-problems, reflexivity complex decisions, decision-rights complexity, epistemological complex decisions, discovery/justification complex decisions, and how to handle these for different executive tasks, based on the extended international doctrine for administration.

Date: 2023
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DOI: 10.1007/978-3-031-25237-2_7

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