Management – Decision Making
For any business to be successful strategic planning is necessary. Planning outlines the goals and projects for the future of the enterprise. Every organization is inundated with numerous new business opportunities that can be pursued. Each option comes with a certain amount of resource requirements. These requirements may be money, labor or the trading of one venture for another. Managers typically seek to find the tradeoffs for each venture and attempt to gain as much information about the risks and rewards of each venture as they can. Seldom is the information totally clear or complete. Decisions have to be made using less-than-perfect data.
Because decision making within the organization is so important to the overall strategic planning process who makes these decisions and how the decision making process is done is important. Failing to plan and failing to make timely and accurate decisions makes a venture very high risk. Thus, it is important the business plan clearly articulate the strategic planning and decision making process. Often this is closely tied to the skills of top management. At times this planning and decision making process is hampered by a corporate structure that fragments the decision making process making it slow and inefficient.