The output of management is decisions. The output of good management is the right decisions; conversely, of course, bad management results in the wrong decisions – and these can be very costly.
However, right decision sometimes is no guarantee of success. There are three reasons:
1. Capability. A decision will not deliver if it does not reflect the capabilities or the core competency of the companies – indeed, it is impractical if it does not do so. These are criteria that should have been part of the initial decision-making process.
2. Commitment. A decision will not deliver if, once taken, it is then evaluated through yet more analysis to the point of paralysis. Better to say, ‘OK, decision made, let’s do it.’
3. Engagement. A decision will not deliver if it does not engage the people who must implement the decision. The understanding and conviction, upon the decision was made, must be communicated to the people who are implement that decision. This is one of the most common problems where decision-making is concerned: many brilliant strategies reports gather dust in filing cabinets; many well-meaning initiatives fail to deliver, because they engage only a small proportion of those needed to implement them.
It is clear, therefore, that while good management is necessary, on its own it is not sufficient to guarantee good performance.
Source: Mark Thomas with Gary Miles and Peter Fisk, The Complete CEO: the Executive’s Guide to Consistent Peak Performance, Capstone Publishing Limited (a Wiley Company), 2006
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