Why decision making in good times is harder than in bad?
Posted on May 27, 2015 by Paul O'Dea
It's ironic. We all welcome better times. Yet the CEO's job becomes trickier than in tough times.
Tough times require strong management skills. You have to do more with less. The focus is on the cost line. New revenue is harder to win and the challenge is often holding on to what you have. Decisions are tough at a human level and they have a short term horizon i.e. they impact next quarter.
In good times however decision making becomes more complex. There are more opportunities. There are new market and product choices to be made. The time horizon to impact is much longer and the impact of decisions is less certain.
Post recession scars are still raw which adds to complexity. When is the right time to make key investments? What evidence is needed? How are the right people motivated? How can the right people be hired? What are the right things to do to enhance shareholder value? How should the right priorities be selected?
As we work with our clients during Business Growth Transformer projects, they tell us that these are the types of issues they are currently facing. Our clients are revitalised as they explore opportunities that were in tough times put on the back burner. Yet opportunity brings challenges as they clear the fog towards sustainable growth, alignment and focus.
