Strategic decision making
Clear presentation of alternatives, uncontrollables and unknowns is a vital prerequisite for responsible, strategic decision-making, says Matthew Leitch.One of the most important occasions for managing risk is when a big decision has to be made. People will be looking for more information, asking about the implications of things that might happen, looking at alternative courses of action… all of which is likely to involve a finance professional.
One of the keys to promoting responsible instead of reckless decisionmaking is to make people aware of what is not known or cannot be controlled, and help them cope with that uncertainty. Clear and helpful presentation is crucial. The following questions are designed to pick up some of the most common mistakes in big decision-making in organisations, and apply to business planning, business cases for projects, and all manner of other important decisions.
This is an extract from the Business & Management Magazine, Issue 259, November 2017.