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Jeff Colvin
Management Consultant & Founder of Link,
a Management Consulting Group
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When
faced with indecision, remember no decision is a decision. Most,
if not all, decisions have some level of risk/reward trade off associated
with them. And most of us will consider deciding to go forward with
something based upon the merits of the action or change that will
occur.
Stop, and consider an alternative approach to making a good decision.
Ask the simple question, "What does it cost not to decide?"
The term "cost" in a business decision can be broken
down into a unique set of consequences, including the impact on
people, company position, and profit. When decisions are blocked,
delayed, or avoided the momentum is stifled and all concerned employees
will take a more scrutinizing look at the status quo.
If nothing is going to change and everyone likes the way things
are today, you are in good shape. But, if the people in your business
are currently discontent, seeking more, different, and better, the
stagnation associated with no decisions and no action will lead
to distress and disappointment.
The effect of non-decision making could begin to establish a culture
of risk aversion and fear. This impact on people will create an
environment where employees are content just getting by. The challenges
for continuous improvement will only be heard through the gossip
channels as complaints and frustrations.
Indecision or resistance to take risk will likely effect the overall
company position as well. Vendors, partners, and investors in your
business will begin to question where the culture of innovation
and aggressive product/service positioning has gone. Along with
this concern could be a fallout in the relationships and the competitive
edge that your business once held.
Finally the decline in profitability of your business is a possible
outcome of assuming a frozen position in today's economy. As competitors
introduce novel approaches and incentives to your customers, the
strategies that worked last year will no longer be viable. From
the individual employee to the top executive the risk averse mentality
and the unwillingness to make decisions to improve, change, or adjust
will potentially have dire consequences on your business.
Independent of the business or position that you hold, the model
for creative thinking and doing is more critical than ever. In a
down economy, each of us holds the responsibility to sustaining
the business through calculated risk taking and novel approaches
to doing business differently and better.
Challenge the status quo.
Management Tips: Cost of Not!
Risk versus Reward
- Set up a pro and con evaluation
- Evaluate the go/no go scenario
- Look at people/company/$ impact
Do Your Homework
- Benchmark your competitors
- Utilize data to aid the decision
- Solicit internal/external input
Cataclysmic Consequences
- Define the worst case scenario
- Create a back up contingency plan
- Remove fear from the equation
Decide!
- Gather support for your decision
- Have data to support your position
- Model the behavior for all
- Have conviction around your choice
Jeff Colvin (Jcolvin@linkllc.com)
founded Link, a management
consulting group in 1997 whose mission is dedicated to the Systems,
Structures, and Behaviors that make people and companies successful.
Link's bottom line focus on process improvement is achieved through
the facilitation and training of cross-functional teams to address
key strategic goals. Learn more about Jeff
Colvin & Link...
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