Automating Decisions as part of Governance Transformation

External decision makers can have a significant influence on organizations. Some examples are:

1. Independent Directors: Many organizations, including respected ones like the Tata Group, appoint independent directors to their boards. These directors bring an outside perspective and objective insights to the decision-making process. They ensure effective governance and often have the authority to influence decisions in the organization.

   
   

2. External Consultants: Organizations often bring in external consultants to provide expertise and insights on specific projects or areas. These consultants can influence decisions by offering fresh perspectives, specialized knowledge, and best practices from other industries or organizations.

   
   

3. Peripheral Developers: In the context of software development, peripheral developers are individuals who are not part of the core development team but have valuable insights and influence. They can contribute to bug detection, software improvement, and provide unique perspectives on software functionality. Their input can shape decisions related to software development and enhance the overall quality of the product.

   
   

4. Social Media Influencers: In the age of digital transformation, organizations often collaborate with social media influencers to promote their products or services. These influencers have a significant impact on consumer behavior and can influence purchasing decisions through their recommendations and endorsements.

   
   

5. Industry Experts and Thought Leaders: Organizations may seek guidance from industry experts and thought leaders who have deep knowledge and experience in a particular field. Their insights and recommendations can shape strategic decisions, drive innovation, and help organizations stay ahead of industry trends.

Key considerations while automating decisions are:

1. Decision Scope: Managers should determine which decisions are suitable for automation and identify the appropriate scope of automation. Not all decisions may be suitable for automation, and it's important to assess the potential impact and feasibility of automating specific decision-making processes.

   
   

2. Enactment of Decisions: Managers need to consider how automated decisions will be enacted within the organization. This involves defining the processes and mechanisms through which automated decisions will be implemented and ensuring that the organization follows these decisions effectively.

   
   

3. Governance and Compliance: Managers must establish governance mechanisms to ensure that automated decisions align with organizational goals, values, and legal requirements. They need to define guidelines, policies, and controls to ensure that automated decision-making processes are transparent, fair, and compliant with relevant regulations.

   
   

4. Data and Algorithm Considerations: Managers should carefully consider the quality and reliability of the data used in automated decision-making processes. They need to ensure that the data is accurate, relevant, and representative to avoid biased or flawed decision outcomes. Additionally, managers should assess the robustness and accuracy of the algorithms used in decision-making systems.

   
   

5. Organizational Change and Adoption: Automating decision rights can bring about significant changes in the organization's structure, roles, and processes. Managers need to consider the impact of these changes on employees, stakeholders, and the overall organizational culture. They should plan for effective change management strategies, provide training and support to employees, and foster a culture that embraces and adapts to automated decision-making.

   
   

6. Ethical and Social Implications: Managers must consider the ethical and social implications of automating decision rights. They should assess the potential impact on employees, customers, and society at large. It's important to ensure that automated decisions are aligned with ethical standards, respect privacy and data protection, and do not perpetuate biases or discrimination.

Note: This is notes from the course Advanced Digital Transformation