Tag Archives: Decision Making
No matter if your budget it £100.00 or £100,000.00, you need to ensure you have effective and efficient systems in place to control how the budget is being spent.
This resource includes a checklist which will help you establish or review process you have in place to keep you and your budget on track.
Senior leaders need to understand the interests and influences of stakeholders before making any key decisions.
It is particularly useful when considering the political implications of introducing or dispensing with a particular product or service, or when heading in a new strategic direction.
Using a 'power vs. interest' matrix, this activity will help a senior team examine the relative power and influence of several key stakeholders.
To download this activity, click on the following link: Stakeholder Analysis Activity
All organisations require a level of commercial awareness from their employees because it is an important skill for making good long-term decisions.
The more commercially aware you are, the more likely you will take into consideration all the important factors when selecting one option over another.
Use this self-assessment to gauge your current level of commercial awareness and help highlight the areas where you can improve.
The activity can also be used within a team learning environment.
To download this self-assessment click on the following link: Commercial Awareness Self-Assessment
There are plenty of legendary bad business decisions: Blockbuster passing up the chance to buy Netflix and Kodak sitting on the digital camera just two that spring to mind.
But there are also some legendary smart moves: "I'll have the merchandising rights in exchange for a smaller pay packet," said a certain film director George Lucas.What separates good companies from great companies, and good leaders from great leaders is decision-making. And there are four key decisions that you need to nail if you want to see your business grow.
1.Decide… on the right people to work with
No company can work towards growth without good employees.
Google's recruitment processes and incentives, for instance, are geared towards attracting and retaining the best available talent. Hammocks, arcade games and free ice-cream may not be your thing, but just like Google, your staff are vital to your company's growth, and just like Google, you want the best available talent.
We cannot all accountants but as a leader in an organisation, it can be useful to have a basic understanding of some of the key financial terms and processes used to manage the organisation's finances.
So, how does accrual accounting differ from cash basis accounting?
In simple terms, the main difference between accrual and cash basis accounting lies in the timing of when revenue and expenses are recognised.
The cash method is mostly used by small businesses and for personal finances. The cash method accounts for revenue only when the money is received and for expenses only when the money is paid out.
On the other hand, the accrual method accounts for revenue when it is earned and expenses goods and services when they are incurred. The revenue is recorded even if cash has not been received or if expenses have been incurred but no cash has been paid. Accrual accounting is the most common method used by businesses.
A report by the CIPD (the professional body for HR and People Development in the UK) highlights how Governance and organisational culture issues have been apparent in many of the recent scandals which have rocked multinational organisations across the financial services, oil and gas, and major retail sectors.In all cases, greater awareness at the board may have meant that the scenario which played out could have been very different.
In all cases, greater awareness at the board may have meant that the scenario which played out could have been very different.
The report, A Duty to Care? recommends that Bards should take full account of the culture of the organisation and well-being of their workforce, and take evidence-based steps evaluating, understanding, measuring and managing the culture of their businesses. It describes how:
- It is the board’s responsibility to understand the culture of the organisation and how it is changing or evolving and to hold management to account.
- There should be open communication channels across organisation boundaries, to ensure that stakeholders, including shareholders and employees, have an understanding of the importance to which the board holds culture.
- The complex and ubiquitous nature of culture makes it one of the most important aspects of the organisation that the board and its senior leadership team must understand and manage.
- The organisation’s multiple stakeholders will each have a unique interpretation of the organisation’s culture and will articulate it through their own unique lens.
- This complexity means that the board must pay considerable attention to the culture of the organisation and ensure that it supports and emphasises the values of the organisation, and ultimately enables the business to perform financially, ethically and sustainably.
To download this report click on the following link: CIPD Report - A Duty to Care?
The Ladder of Inference is a model that was first developed by organisational psychologist Chris Argyris in 1992 and later used by Peter Senge in his book, The Fifth Discipline Fieldbook.
The ladder depicts the unconscious thought process that we all go through to get from facts to a decision for action. It attempts to explain how we tend to behave or "jump to conclusions" when faced with a "situation".
- We select 'facts' (although not necessarily consciously) from our data bank of experience, facts, beliefs and
- Once we have selected data, we begin to add meaning to it. We interpret, that is, make assumptions about what we see, hear, read, feel and we impose our own interpretations on the data.
- Then draw our conclusions from We lose sight of how we do this because we do not think about our thinking. The conclusions feel so obvious to us that we see no need to retrace the steps we took from the data we selected to the conclusions we reached.
- Our conclusions become part of our data bank - whether 'true' or distorted, they will influence future thinking.