From ambiguity to action: integrating collective sensemaking and rational decision making in management pedagogy and practice

Abstract

PurposeManagers are increasingly presented with complex, ambiguous decision problems that affect multiple stakeholder groups. Such problems cannot be tackled solely by classical approaches that prescribe rational methods to weigh evidence and select an optimal course of action. Yet most courses on decision making still focus on these methods. This paper draws attention to the complementary nature of rational decision making and sensemaking techniques in management decision making, and describes a practical pedagogy that demonstrates how the two can be integrated into management curricula.Design/methodology/approachBased on an in-depth review of relevant research, the authors propose a conceptual model that highlights the complementary nature of rational and sensemaking methods for making decisions relating to complex and ambiguous problems. They then describe a course on decision making as an illustration of how the model can inform decision making pedagogy.FindingsDecision makers need to think of their decision problems in terms of two distinct types of uncertainty: those for which uncertainty can be quantified and those for which it cannot. When faced with the latter, decisions are best made by working with relevant stakeholders to collectively frame the problem using practical sensemaking tools prior to applying rational decision making techniques to address it. Decision making under ambiguity is an iterative, social process requiring a combination of rational decision making methods and sensemaking techniques.Practical implicationsThe paper seeks to increase awareness about the complementary nature of sensemaking and rational decision making. It emphasizes the need to integrate the two in management curricula and provides details on how this can be done via an example of a course implemented at an Australian Business School. The techniques described will also be of interest to practitioners.Originality/valueThe paper describes a practical pedagogy that blends rational decision making and collective sensemaking techniques in a way that fosters managers’ decision making skills in contexts characterized by ambiguity.