Decision Making Steps

Course of Actions

Executive Decision Making

Step 4: What is Right

The effective executive has to start out with what is "right" rather than what is acceptable because a compromise is always necessary in the end.

  • Consulting Assignment: Alfred P. Sloan, Jr.
  • Can't compromise unless you tell them what is right

Two Kinds of Compromise

  1. Proverb "Half a loaf is better than no bread"
  2. Judgement of Solomon " Half a a baby is worse than no baby at all"

Step5: The Action

Converting the decision into action

  • No decision unless steps taken to carry them out
  • Only an intention

Requires Distinct Questions

  1. Who has to know of this decision?
  2. What action has to be taken?
  3. Who is to take it?
  4. What does the action have to be so that the people who have to do it can do it?

First and last question often overlooked with dire results

Step 6: The Feedback

Information Monitoring and Reporting have to be built into the decision to provide continuous testing against actual events of the expectations that underlie the decisions.
  • Made by people
  • People are fallible
  • Decisions do not last long
  • Decision may be wrong
  • Most effective becomes obsolete

Organized Feedback Used To Monitor

  • Reports
  • Figures
  • Studies

A decision can not be fully and accurately evaluated by studying a report

  • Abstract communications
  • Far removed
  • Assumptions

Executive should

  • Go look
  • Make sure still valid or obsolete
  • Think though again