ArcaMax

News & Entertainment by Email Media Center

Marketing Resources

From the ArcaMax Advertising Update Online Marketing Newsletter

Business Decisions

Apr 18, 2017

Your ability to make good decisions will have a profound impact on your level of success. Today’s post will summarize four critical elements of good decision-making, as discussed by management guru Peter Drucker in “The Effective Executive”:

1. According to Drucker, a decision is a judgment. It is not a choice between right and wrong; rather, it is a choice between “almost right” and “probably wrong”. Most decisions aren’t as clear-cut as we’d like. We start with opinions about what might be right and then do our best to test our hypotheses to arrive at the correct decisions. It is pointless to argue these hypotheses – they must be tested.

2. Good decision-making also encourages disagreement among those involved. This is critical; if both sides of a decision can’t be argued with some persuasiveness, then all of the relevant factors aren’t being taken into consideration. Beware of a decision where every stakeholder appears to completely agree.

3. It is vital to ask the question, “Is this decision really necessary?” Doing nothing is always an alternative. Sometimes that’s the best choice. Drucker recommends that we act only if the benefits greatly outweigh the cost and risk. Further if you act, then act! If you decide to not act, then don’t act! Don’t hedge or compromise – that’s a sure path to failure. Decision-making requires as much courage as wisdom.

4. Finally, understand even the best decisions eventually become obsolete. Good decisions made in the past need to be reevaluated. Circumstances change. Don’t take for granted that which was proven in the past is absolute and still true today. That’s why it is so important to periodically retest the important assumptions and practices that you’ve implemented in your business.

We'll reference more of Drucker's work in an upcoming issue. His writing is timeless and we highly recommend it!

Request Info