How to Make Effective Decisions According to Peter Drucker
Making effective decisions is one of the most important things a leader has to do.
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| Photo by Ben Rosett on Unsplash |
Making effective decisions is one of the most important things a leader has to do.
There are dozens of frameworks on how to approach decision-making: one that works particularly well is the 5-step framework famous economist Peter F. Drucker proposed:
- Is it a generic situation, or an exceptional situation? Generic: Apply a rule or a principle and don’t drain your decision capacity too much. Exception: deal with it on an individual level.
- Make a clear specification of what the decision is intended to achieve. This consists of (i) an exact definition of the boundary conditions as well as (ii) the solution the approach must fulfill.
- You must always start with what is right and not what is still acceptable. Provisional solutions often remain longer than you think at the beginning.
- Transform decisions into actions.
- Build feedback into the decision.
Thank you for reading this short piece! If you are interested in a deeper dive, check out this article, where I summarize Peter F. Drucker’s book The Effective Executive.