Back

Putting the Brakes on BIG Decisions: Another CEO Quick-Tip

Putting the Brakes on BIG Decisions: Another CEO Quick-Tip

Get it done and get it done fast! This is how CEOs are measured today. See a problem, fix it, and move on to the next one, the faster the better.

The old “Time is money,” has given way to the new “Speed is money.” And in the world of constant everyday decision-making, speed always makes sense.

But when you’re in the world of BIG decision-making, speed is completely the wrong approach. To suddenly switch gears from high to low is not always so easy to do. Like sex; in most cases ‘speed’ is not the #1 ‘get it done’ best approach, right? Yet, this is where speeding past the risk factors can get you into real trouble.

Think about the analogy. If you have sex at the same breakneck speed that your Board of Directors pays you to make decisions, then I fear you stand a higher chance to completely underestimate the risks that a sloppy performance can have. And that’s my whole point. Remember any decision worth making is only right when it successfully achieves the ‘expected outcome’ [read my article: The 6 Key Principles of Decision.] But enough about sex.

When astronauts Neil, Buzz and Mike all returned from the first Moon landing mission in Apollo 11 in 1969, it was only a good decision to go in the first place because they came back in one piece. That was the expected outcome. Such precision however also cost us all millions of dollars and years to plan for. In that example, making a speedy decision took a back seat to making a Quality Decision.

It reminds me of a funny John Deere (new riding lawn mower) Tv commercial: two neighbors zipping around atop their new Deere mowers, and maybe to justify the likely higher price of their new toys bellow out to their wives: “It’s not how fast you mow; it’s how well you mow fast.” And who would disagree with that? High Quality results are always worth something extra. But that is not the only message here. The other message suggests that when speed increases, so do risk levels. And when risk levels get out of control, you need to slow down and readjust your thinking and approach.

For example, the old standard sales question from your stakeholders asked ‘how will you increase sales next year? But when facing a BIG decision, that is no longer the right question. When risk goes up the right question is not ‘how much will you increase sales by next year, but rather, ‘how well can you lower the risks that sales will decline next year?’ Maybe John Deere has it right.

Listen… we all know that every business has everyday risk factors, but when BIG decisions are involved risks are amplified. And when risk levels become elevated the consequences for getting it wrong can be a real mission killer. In other words; it could mean lights out for you and your business… So how do you reduce the levels of risk amplified when making BIG decisions?

Regardless of your luck or talent, as CEO, making BIG decisions is par for the course and will always mean tradeoffs… But when you do find yourself barreling forward into a BIG decision and you don’t have weeks of time, and NASA’s endless budget to attenuate risk factors…don’t get overwhelmed. Before you pull the trigger, try these (4) Emergency tips. They have proven to get CEOs past a speed trap or two when they can’t slow down:

  1. Call & consult an SME, (subject matter expert) if possible
  2. Identify & focus on measurable results your BIG decision expects to achieve
  3. Show confidence in your BIG decision and others will follow
  4. Be nimble & flexible before you pick a costly fight

And remember, in this new era of CEO performance where Speed is Money, “it’s not how fast you make decisions, it’s how well you make decisions fast.”

Make sense…?

Rick Andrade Verified account

Managing Director (Pasadena Office) at JANAS Associates, Investment Bankers & Management Consultants
Rick Andrade is an investment banker at Janas Associates in Pasadena, Ca and a finance writer in Los Angeles helping CEOs buy, sell and finance middle market companies. Rick earned his BA and MBA from UCLA along with his Series 7, 63 & 79 FINRA securities licenses. Please note this article is for informational purposes only and should not be considered in any way an offer to buy or sell a security. Securities are offered through JCC Advisors, Member FINRA/SIPC. 

Leave a Reply

Share
+1
Tweet