Making Good Decisions

Making good decisions is crucial to success.

Good decisions for significant matters should take into account all angles, even arguing from other points of view. Not considering all sides, even one with which you might disagree, might lead to poor decisions. Making the arguments for a case different from their own allows the Entrepreneur to clearly see all sides of an important decision. Arriving at a decision after considering all viewpoints is best when one makes all the arguments as if they are their own.

Entrepreneurs should also evaluate, at least for significant issues, potential unintended consequences of their decisions. Take an example of developing an incentive program. If you have developed a program that correlates high performance with high reward, it is of course your intended consequence. But, what about unintended consequences of employees cheating or manipulating the system to obtain higher compensation? How have you protected the company against such unintended consequences?

When making crucial decisions consider all sides and potential unintended consequences.

Ravi Patel

http://www.patelCFOservices.com

 

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Published in: on May 22, 2018 at 4:45 am  Leave a Comment  
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Getting Distracted

Entrepreneurs understand the need for a clear Vision and the requirement to develop an appropriate Mission for that vision.

How many of you are really focused on the Vision and Mission (V&M) when making significant decisions? Do you get caught up in the day-to-day or near-term issues and challenges that you lose sight of the V&M? Do you get distracted on other opportunities that seem too good to pass up?

Be aware of potential distractions (disguised as opportunities) while you focus on your Vision and Mission.

Ravi Patel

http://www.patelCFOservices.com

 

Published in: on May 15, 2018 at 4:45 am  Leave a Comment  
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Let Learning Happen from Mistakes

Starting Entrepreneurs often exercise strong control where virtually all decisions are made by them. Entrepreneurs are not yet ready to delegate responsibility and trust their people with decision-making authority. Entrepreneurs do not want their people to make mistakes.

That is not the way to develop people and grow the company. Entrepreneurs have to be willing to allow their people to learn how to make good decisions on their own. This may result in a few mistakes, but let those be learning experiences rather than creating an environment of fear to make decisions.

Entrepreneurs should let their people make mistakes and learn from those situations. There is nothing wrong in having checks and balances to prevent unchecked major mistakes hurting the organization.

Managing a growing company is similar to watching a child learn to walk. Parents allow their children to fall so that they can get up and learn to walk. Entrepreneurs need to do the same.

Do the Right Things!

Ravi Patel

www.patelCFOservices.com

Published in: on May 8, 2018 at 4:45 am  Leave a Comment  
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From Doing to Thinking

Entrepreneurs like to get their hands dirty and are involved in doing stuff. This is as a result of their expertise, desire and passion.

What happens as their company grows? They cannot be only involved in “doing,” they have to focus on thinking.

An analogy would be that of an entrepreneur who is an expert in building a widget. He/she can spend enough time on developing and building the perfect widget. However, at some point the focus should be on developing a strategy of how to market and sell the widgets, building lots of widgets at a low cost, creating the organization to build and sell widgets, opening new locations, and so on.

Entrepreneurs have to shift their role from “doing” to “thinking” in order to get to the next level.

Ravi Patel

http://www.patelCFOservices.com

Published in: on May 1, 2018 at 4:40 am  Leave a Comment  
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