This episode delivers a practical HR lesson on decision-making, arguing that HR’s role is not to make decisions but to ensure decisions are made well by identifying risks and variables. It distinguishes bad decisions from risky ones, explaining that a bad decision is not simply one with a poor outcome, but one that was flawed based on what was known at the time—rather than judged through hindsight.

Risky decisions are inevitable whenever outcomes depend on variables, and they are not inherently bad; the real problem is unanticipated or unknown risks. The focus for HR, therefore, should be on surfacing known and unknown variables, closing awareness gaps, and “setting the table” so managers can clearly see the possible consequences of each option.

Managers must own the decisions, while HR’s responsibility is to prevent bad, risky decisions by ensuring risks are recognised, understood, and consciously accepted rather than discovered after the fact.