A Guide to Effective Decision Making
Jeremy outlines nuggets in his book meant to help managers take their businesses forward by helping them learn strategies for effective decision-making. The book is divided into two parts with the first addressing the forces at work and the other expounding on the concepts and tools for strategic decision making.
The forces any business faces are likely to fall under the social, cultural, or commercial category. Knowledge (intellectual capital which includes experience and expertise) and leadership matter a great deal in trying to address these forces. It is important that an organization’s knowledge remains as unique as possible as this provides profitability because of scarcity. Value innovation, globalization and management of information are key strategies to ensure uniqueness.
Among the very many ideas, one may have for their business, they need to remember three things Jeremy outlines: to employ effective strategic leadership and decision making at every level of the organization; to forecast and manage uncertainty; and to manage adversity. There are three principal financial issues that influence strategic decisions: cash management, risk management and budgeting. The most powerful and natural of forces shaping strategic thinking is the human mind; as a result, there are three types of failure any organization leader needs to watch out against: thinking flaws, leading flaws, and cultural flaws. It is said that “bad decisions can often be traced back to the way they were made” adaptive organizational learning and scenario thinking are mechanisms Jeremy outlines that can help any business avoid some common pitfalls and traps.
For the realization of growth in any business, five strategies need to be highly considered: organic growth, mergers and acquisitions, integration/partnership, diversification, and specialization. In addition to that any team needs to employ competitive strategies that encourage competitiveness with the customer being the focus.
As the book ends, Jeremy mentions the need to manage finance and also manage risk. The latter can be made possible by creating a positive climate for controlling risk depending on its potential impact and the need to overcome the fear of risk. He also points out the importance of brand management; deciding the brand’s purpose, emphasizing the brand’s values, deciding where to position a product and how to build customer loyalty. This is a book to grab for any individual or organization that desires growth and progress either in business or any other sphere of life.