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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Unintended Consequences

Good decisions for significant matters take into account all angles, even arguing from other points of view.

Adding to this process of making good decisions, Entrepreneurs should also weigh unintended consequences of their decisions. Did you evaluate, at least for significant issues, potential unintended consequences?

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 potential unintended consequences and implement appropriate internal controls.

Ravi Patel