How We Make Decisions

...It is often thought that big decisions need big process to support them. This is not necessarily so. Sometimes speed of decision is more important than the comprehensiveness of a "big process". Let us be clear though, a process (formal / informal, structured / unstructured, instinctive / thoughtful) exists for all decisions, whether you realize it or not.

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Bet the Company Thinking

Business 101 starts with defining a business model that solves a real problem for a set of people, and doing so at a price which people will pay to address their need. This business model will account for risks, and a conscious decision is made to pursue the business (or not) based on these risks. In some cases, the risks are very high and the potential rewards correspondingly high. The most extreme of these are called "bet the company" decisions - and rightfully so, the risks are realized it could destroy the company. The fundamental concept that both extremes are possible serves as an internal regulator for decisions

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Anatomy of a Decision

Decisions are interesting things. It can be argued that not making decisions well can cause significant damage to any organization. A friend of mine, who happened to come out of the military, explained to me that decision making is the essence of leadership. Another friend of mine once told me that perhaps the most important job of an executive is to make decisions (and to make them decisively).

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