The effective decision
– synopsis of an article by Peter F. Drucker.
This is definitely worth re-publishing …. a classic read.
NOTE: best practice process and tools available here
While browsing through the B School library the other day, I happened across an article on decision making by Peter Drucker, originally written in 1967. Naturally as this is our business I was curious to see what one of the true masters of management had to say on the topic. Here is the synopsis together with our commentary.
Drucker commences by stating that an effective decision making process must go through some basic steps. These steps will not “make” the decision – it will always be a judgement call – but if the steps are ignored, the decision is not likely to be effective nor right. The 6 steps he recommends are:
- The classification of the problem
- The definition of the problem
- The specifications which the solution to the problem must satisfy (the “boundary conditions”).
- The decision as to what is “right”, rather than what is acceptable, in order to meet the boundary conditions
- The building into the decision of the action to carry it out.
- The feedback which tests the validity of the decision against the actual course of events.
- Who has to know of the decision?
- What action has to be taken?
- Who is to take it?
- What has to be done so that these people can take the action?