Everyday in business, invariably begins and ends with the need to make a series of logical decisions, right from hiring people, applying resources and capturing market. The following analysis is all about how start-ups need to gear themselves effectively for making decisions, supported by logical reasoning.
David Barzilay Management backs informed decisions
David Barzilay Management has witnessed phenomenal success in all its commercial ventures, namely, those of acquiring like-minded and dynamic firms in the internet business industry. The driving factor behind these successes is logical decision making. The steps involved in logical decision making are:
- Brainstorm for as much information as possible regarding the decision that is to made. For example, if the decision is to expand your product portfolio, information on product characteristics, investment in production and marketing as well as market readiness of the product must be gathered.
- Decisions made in the absence of vital information always lack in logic. Whenever the David Barzilay group decides to acquire a new business, the homework begins many months in advance. The pre-acquisition phase is also the pre-decision making phase where information gathered is properly assimilated.
The loopholes in the decision making process
As in any process, even the sequential process of logical decision making is effective only when enacted flawlessly. In the case of acquiring Dalberry, the renowned forerunner in the online payments industry, the key decision to buy controlling stake in the firm was made, anticipating a huge acceptance of the e-wallet concept in the market. Here it was only flawless decision making that led to soundness and correctness of the decision. Some common loopholes in decision making are:
- Taking things for granted, without making a scientific and objective analysis. For example, one cannot assume that human resources of an organization will remain constant forever. Attrition must always be provided for. Succession Planning must be carried out on a periodic basis.
- Ignorance of the larger picture. This quite often happens in large corporates, where the project managers are so wedded to conceptualization of idea, that they fail to ignore its applicability to the real world. A picture perfect decision may fail in actuality, if it is not supported by reason and logic.
- David Barzilay Management has trained its team more than adequately, to give up or say no to ideas and projects that do not meet relevant parameters for advancement. Only projects that are cashable in the short run are taken up by the group. This is a classic reference to logical decision making.
How far does communication influence logical decisions?
Communicating the decisions effectively is an art that may be overlooked in the hustle and bustle of everyday activity, even if it is a small business. Unless, a decision is communicated throughout the organization, ambiguity and short-sightedness of the decisions may entail and disfigure the prospective benefits.
- The decision makers must make it a practise to communicate the decisions across the organizations. Modern technology has made it possible to get in touch even with global offices of a business, real time.
- David Barzilay management has always stood for decisions that stand the tests of time. A decision needs to be revisited periodically. But, by and large, long term and logical decisions are made after careful evaluation of different alternatives, so that they can remain consistent over time.
- Since the David Barzilay group specializes in corporate acquisitions, the importance of communication in logical decision making cannot be ignored. When the group acquired Pragmatic Play and also offered to add upon its talent base, the decision was well-received by the business. Here clarity of communication in strategic decision making is well demonstrated.
Do new managers need training in decision making?
Logical decision making is a value added process that is required across all rungs of the organizational ladder. New managers need high intensity training in the following road map of decision making:
- Develop creative alternatives to the decision making criteria. The answer to a logical question need not always be a solution. It may be another question leading to discovery and innovation. David Barzilay Management has always been welcoming innovation with open arms, as evidenced in its recent acquisition of River Play (rebranded as Pragmatic Solutions), where the latter provides innovative customer and content management platforms.
- Once the alternatives have been jotted down, managers must be trained to evaluate them against well-articulated criteria, without bias or favouritism. This is the qualitative aspect of decision making where managers need to be trained well. In the world of internet business, driven by cut throat competition, any faulty evaluation of alternatives will become fatal to the health of the business.
Building control mechanisms in decision making
Decision making is a dynamic process and must always be open ended, allowing enough room for constructive changes. While it will be a corporate fallacy to bend to the whim of each and every stakeholder to the decision, it will be unwise to implement it arbitrarily as well. Most importantly, it must be embedded with proper control mechanisms as under:
- Control mechanisms are nothing but setting benchmarks against which actuals can be considered and any gaps between the two will be thrown up automatically.
- The correctness or otherwise of the decisions will be evident from the manner in which the implementation phase runs in sync with the yardsticks fixed. In most cases, self-correcting mechanisms are built-in so that major decisions do not suffer a setback due to minor errors.
All David Barzilay Management decisions are participative decisions
Unless decisions are made in conjunction with each and everyone representing the key stakeholders, consistency cannot be maintained. Participative decisions help in:
- Smoother execution of logical decisions are possible when the management takes ownership and responsibility of the decisions.
- Ownership of a decision can be bought only by dialogue, collective bargaining and consensus rather than dictating them and forcing down.
The David Barzilay group believes that values of logical decisions can be leveraged if they are participative and are well implemented through both the internal and external channels of business.