Noreja Blog

Quick Tips: Four Types of Decisions and What They Mean for BPM

Written by Julian Weiß | Sep 9, 2025 7:00:00 AM

Welcome back to our Quick Tips series. This month, we explore a challenge that every business faces: decision making. Too often, organizations design their processes as if all decisions are the same. The result? Trivial matters drag on for weeks, while strategic choices are made with far too little structure.

The reality is that not all decisions are created equal. By recognizing four distinct decision types and aligning business process management (BPM) practices accordingly, leaders can improve both the speed and quality of outcomes.

Problem Statement: When Every Decision Looks the Same

Organizations frequently apply the same governance, approval steps, or workflows to every decision. That might feel efficient on the surface, but it often produces the opposite result: small, reversible choices get stuck in lengthy approvals, while major strategic bets don’t receive the depth of analysis they require.

Research confirms the impact. A McKinsey study found that 72% of executives believe bad decisions are as frequent—or more frequent—than good ones.

When organizations lack clarity on how decisions should be handled, performance and agility both suffer.

The Pitfalls of One-Size-Fits-All Decision Processes

Treating all decisions alike creates familiar bottlenecks: endless meetings without a clear decision owner, strategic topics escalated unnecessarily, and operational issues that drag senior leaders into the weeds.

The result is what some executives call decision diseases:

  • Paralysis — meetings that never produce action.
  • Diluted accountability — too many people involved, but no one responsible.
  • Misclassification — minor issues treated like major risks, while big bets pass as routine.

The answer lies in distinguishing between different decision types and shaping BPM processes around them.

Four Solutions: The Decision Types in BPM

Big Bets — Design Structured, High-Stakes Processes

What they are: Rare, high-impact decisions such as acquisitions, market entries, or major investments.
BPM implication: Model these decisions with clear milestones, an executive sponsor, and transparent dependencies across the organization. Break complex choices into stages and create defined gates for evaluation.
Value: This structure ensures strategic focus, minimizes blind spots, and builds organizational commitment once a decision is made.

Cross-Cutting Decisions — Orchestrate Collaboration

What they are: Frequent, multi-stakeholder decisions like pricing strategies or new product launches.
BPM implication: Define roles, map handoffs, and establish collaboration points without creating unnecessary bureaucracy. Simulate real scenarios to test whether the process works under pressure.
Value: Well-choreographed processes reduce silos and align departments, leading to faster and higher-quality outcomes.

Delegated Decisions — Empower and Automate the Everyday

What they are: Routine, low-stakes choices such as approvals, hiring decisions, or resource allocations.
BPM implication: Push these decisions down to the right level of the organization. Set clear thresholds for when escalation is required. Use automation and AI where appropriate, but maintain transparency and accountability.
Value: Leaders free up time for strategic work, employees gain ownership, and operations move more quickly.

Ad-hoc Decisions — Capture Insights from the Unexpected

What they are: Spontaneous, episodic decisions that arise without warning.
BPM implication: Instead of ignoring them, design lightweight documentation and feedback channels. Capture what was decided, why, and the outcome.
Value: This prevents knowledge loss, highlights recurring patterns, and feeds continuous improvement in both processes and decision culture.

Food for Thought: Rethinking Decision Making in Your Organization

  • Which decisions in your organization are misclassified — treated as routine when they’re actually strategic, or vice versa?
  • Do your BPM models reflect the real variety of decision types, or are they built on a one-size-fits-all logic?
  • How could adapting BPM practices to match the nature of each decision improve agility and trust in your organization?

Conclusion: Align BPM with the Reality of Decision Making

Effective BPM is not just about workflows and approvals — it’s about structuring how decisions are made. By aligning processes with the four decision types, leaders create clarity, speed, and accountability.

The takeaway is simple: decision making is most effective when processes match the stakes, frequency, and scope of the choice at hand. Organizations that recognize this can transform decision making from a source of frustration into a driver of performance.

Quick Tip: Reflect on your current processes. Where might tailoring by decision type improve both speed and quality?

 

 

Frequently Asked Questions

What are the four types of decisions in Business Process Management?

The four types are: Big Bets (strategic high-stakes choices), Cross-Cutting Decisions (cross-functional decisions), Delegated Decisions (routine decisions), and Ad-hoc Decisions (spontaneous choices).

Why is it important to distinguish between decision types?

Not every decision has the same impact. Classifying decisions helps design processes that are more efficient, targeted, and effective.

How does BPM support Big-Bet decisions?

BPM provides structure through milestones, clear accountability, and decision gates, ensuring that major investments or transformations are managed effectively.

How can Ad-hoc decisions be integrated into BPM?

By documenting spontaneous decisions, organizations prevent knowledge loss and can identify patterns that improve processes over time.

What role does automation play in delegated decisions?

Automation and AI help accelerate routine decisions by following predefined rules and thresholds, while leaders maintain oversight and accountability.