I once worked on a book aimed at better decision-making. The authors were bright researchers, hot shot business school professors with blue-chip consulting clients who had used their theories to make better decisions. They hoped their book would do for corporate decision-making what “In Search of Excellence” had done to encourage all those lazy, short-sighted managers to give up their martini-glazed, expense-padding ways.
That was when I was fresh out of college, in the mid-1980s. Had they succeeded in their quest, I would tell you the name of the book, which was well-done, with theories and ideas I still try to apply, when I think of it. Sadly, twenty years later, there have been umpteen-million other books on decision making, spurred on in part by the new field of behavioral economics.
Among the latest is “How the Wise Decide,” by two former McKinsey consultants who have gone on to successful careers in business, Bryn Zeckhauser and Aaron Sandoski. They claim to have taken a different tack on decisions, by interviewing highly successful businesspeople about how they did it. That is of course an old technique. There’s nothing wrong with the concept, but recognize that most of these people are reliving their seminal decisions through the hallowed light of hindsight.
Among the 21 leaders they interviewed are former heads of American Express, Goldman Sachs, Motorola, and Starbucks and the current heads of The Blackstone Group, General Motors and Ogilvy & Mather. They also have Daniel Kahneman, whose work with Amos Tversky was seminal for behavioral economics, and Lee Hsien Loong, the prime minister of Singapore.
You’ll never believe what emerged from these 21 interviews: a list! Let’s call it, The Six Steps to Making Good Decisions:
- Go to the Source
- Fill a Room with Barbarians
- Conquer the Fear of Risk
- Make Vision Your Daily Guide
- Listen with Purpose
- Be Transparent
Print it out and add it to the pile of lists that keep your business from failing.
I give them points for acknowledging, as many authors do not, that these principles are hard to execute (I bet that “Be Transparent” one is extra-tough — it’s hard to see through skin. Although “Be Transparent” is easier to remember than that bit about Barbarians). Of course, their book is ‘a practical guide’ for better decision-making. But so was the book I worked on. So are almost all business books — as I’ve said before, business books are like guidebooks, and tend to work best when you hire a tour guide.
I’m not suggesting this book is worthless. The stories of successful people tend to include great nuggets of advice, especially if your company happens to be in a similar position. And for this book, you can decide for yourself what you think — you get examples of two principles, broken out in six parts on 800CEORead. One focuses on Bill George, the former CEO of Medtronic, and what happened when he went to the source. The other looks at how Dermot Dunphy stuck to his vision to build SealedAir, the maker of BubbleWrap, into an astounding stock market performer.
Bill George Goes to the Source, Part I
Bill George Goes to the Source, Part II
Bill George Goes to the Source, Part III
Dermot Dunphy Sticks to his Vision, Part I
Dermot Dunphy Sticks to his Vision, Part II
Dermot Dunphy Sticks to his Vision, Part III
The Bill George one is worth reading just for the anecdote it starts with — it may be the only time in history that a CEO has had a bloody catheter chucked at him.
Finally, the authors have a post that gives an overview of the book and its six principles here: How the Wise Decide.
