Data Governance Blog

Decision Loops at a Macro Level and Micro Level

The reason the Prime Business Decision (PBD) Loop (TDAN May Issue) functions so well up and down the organization hierarchy is that it is an extension of the model we use on a micro, or personal level. The PBD Loop maps the exact process we use personally minute-by-minute throughout the day. For example, as you drive your car to work or the store, you cycle through the process continuously.

You continuously Acquire information about traffic around you, observing the cars adjacent to you and coming up behind you. You may listen to traffic reports about what is beyond your line of sight. That information is Integrated with your knowledge of traffic laws, typical patterns for the road you are on, traffic reports, and available alternate routes. Armed with this information and the integrated view, you Analyze your options; do you change lanes, change routes, or stay the course? You then Act, choosing to take one of the options open to you completing the PBD Loop and starting another. This is the loop being completed on a micro scale.

In the business space, it may be the Business Analyst who Acquires requirements, Integrates them with knowledge of the existing system, then analyzing the options on how to implement those requirements. The final step is the Action to choose one and implement it. Again, this is a micro loop.

On an enterprise, or macro level, the loop is represented by the delegation of tasks by senior leaders. Typically, someone is placed in charge of the systems that Acquire information and money in exchange for goods and services. Yet another person takes on the role of integrating the information with the historical data and outside information, housing that data to support Analysis. The Finance, Risk, and Marketing teams then are tasked to Analyze the data that has been acquired and integrated. They consider options to steer the company and present the options to decision makers to Act upon. This completes the PBD Loop on a macro scale.

The key here is to look at what someone is managing and map it to the four cornerstone activities. Examine how the activity has been delegated and realize that each subordinate is running their own loop. This is the recursive nature of the decision loop and how it scales up and down the organization.

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Thanks for stopping by. My writing is intended to take a lighter look at Data Governance, and toss in some pragmatic advice along the way.  If you are interested in more information on how to implement Data Governance in your organization, please contact me via LinkedIn or the email address below.

Regards,
Tom Jesionowski

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