Right Decision or Quick Decision

Hi, this is Irino, a strategy consultant.

Today I will explain about decision-making.

Do’s & Don’ts for Beginners

■　Don’t say “Because he said so”

A bad manager tends to make decisions like “if you say so”, and makes excuses like “because he said so.”

A good manager trust the people he works with. But it doesn’t mean that he makes decisions just because of others’ opinions. He think very hard with facts, logic, and gut feelings. He knows it is him who should make the final call.

Do’s & Don’ts for Intermediate Entrepreneurs

■　Do not test all the hypotheses

To make a decision, you need to accumulate pyramid structure of fact and logic.

ISHITO-SAN, PLEASE TRANSLATE POWERPOINT(OPEN DOCUMENT FORMAT).

The piramid structure is based on many hypothesis blocks. If you verify all hypotheses, you can make a right decision. Thorough research will test your hypotheses and improve the quality of your decision.

But if you are a startup, you don’t have the luxury of verify all the hypotheses. In reality, you have little time, money and data. You need to priotize. Pick the most important hypothesis. Close your eyes to the less important. Leave behind some hypotheses untested.

It’s scary. It takes courage. But you cannot avoid the trade-off between speed and accuracy. Slow decision is worse than bad decision.

Do’s & Don’ts for the Master Class Entrepreneurs

■　Decide who should decide.

Bad managers are obsessed with the idea that managers should make all decisions.

There are cetain types of desions managers shouldn’t make.

One is the case where managers don’t have detailed knowledge and skills and people on battle fields knows better.

Another is the case where managers want to nurture leaders of next generation. A good manager lets young leaders make decisions. Even if he knows it’s a wrong decision, he paciently accept their proposal. Young leaders take the consequences of their own decisions. They learn by doing.

Editor’s Postscript: Fishing in the Mountain