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Making Difficult Business Decisions Print

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Choosing under uncertainty.

WHAT MAKES THEM DIFFICULT

Incomplete information Consequences that are hard to reverse Competing considerations Personal stakes

WHAT TO ESTABLISH FIRST

What decision is actually being made.

WHY

Discussions frequently proceed without agreement on the question.

WHAT TO IDENTIFY

The options, including doing nothing.

WHY DOING NOTHING

It is always an option and it is frequently omitted.

WHAT TO ESTABLISH FOR EACH OPTION

What it costs What it produces What could go wrong How reversible it is

WHY REVERSIBILITY MATTERS MOST

Reversible decisions can be made quickly; irreversible ones deserve more care.

WHAT TO DO ABOUT REVERSIBLE DECISIONS

Decide and move.

WHY

Deliberating over them wastes more than the error would cost.

WHAT TO DO ABOUT IRREVERSIBLE ONES

Gather more information, and consider whether a smaller reversible step exists.

WHAT TO ASK

What would have to be true for this to be right.

WHY THAT QUESTION

It exposes the assumptions and makes them testable.

WHAT TO SEEK

A view from someone without a stake.

WHY

Their assessment is not distorted by what you want.

WHAT TO AVOID

Deciding while exhausted or under pressure Continuing because of what has been invested Deciding by not deciding

WHY THAT LAST POINT

Delay is a decision, made badly.

WHAT TO RECORD

The decision, the reasoning and the expected outcome.

WHAT TO REVIEW

Whether it worked.


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