{"id":38672,"date":"2021-06-03T20:54:00","date_gmt":"2021-06-04T00:54:00","guid":{"rendered":"https:\/\/www.shortform.com\/blog\/?p=38672"},"modified":"2021-08-14T13:02:58","modified_gmt":"2021-08-14T17:02:58","slug":"executive-decision-making","status":"publish","type":"post","link":"https:\/\/www.shortform.com\/blog\/executive-decision-making\/","title":{"rendered":"Peter Drucker on Executive Decision-Making"},"content":{"rendered":"\n<p>How should executives make decisions? What are some things you can do to streamline your <a href=\"https:\/\/www.shortform.com\/blog\/methods-of-decision-making-crucial-conversations\/\">decision-making<\/a> process?<\/p>\n\n\n\n<p>Executives\u2019 decisions significantly affect the entire organization and its performance. Therefore, effectiveness in this area is a must. Management consultant Peter Drucker advocates a five-step approach to executive decision-making.<\/p>\n\n\n\n<p>In this article, we\u2019ll first introduce Drucker\u2019s decision-making steps and compare them to other executive <a href=\"https:\/\/www.shortform.com\/blog\/decision-making-in-organizations\/\">decision-making approaches<\/a>. <\/p>\n\n\n\n<!--more-->\n\n\n\n<h2 class=\"wp-block-heading\">The Executive Decision-Making Process<\/h2>\n\n\n\n<p>Drucker advocates this overall approach to executive decision-making:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Don\u2019t make a lot of decisions<\/strong>\u2014make only a few important ones\u2014because the majority of decisions are routine and can be standardized (we\u2019ll discuss this further under Step 1).<\/li><li>For the <a href=\"https:\/\/www.shortform.com\/blog\/important-decisions-in-life\/\">important decisions<\/a>, <strong>think conceptually and strategically<\/strong> rather than focusing on individual problem-solving. (Shortform note: Conceptual thinking (connecting disparate ideas or abstractions) is sometimes referred to as out-of-the-box or <a href=\"https:\/\/psychology.wikia.org\/wiki\/Lateral_thinking\">lateral thinking.<\/a>)<\/li><li><strong>Don\u2019t try to make fast decisions<\/strong>, but thoroughly explore what the decision is about and what conditions it has to satisfy. (Shortform note: In recent years, there\u2019s been greater interest in <a href=\"https:\/\/blog.rescuetime.com\/make-decisions-quickly\/\">faster decision making<\/a>\u2014for example, to gain a <a href=\"https:\/\/www.shortform.com\/blog\/business-competitive-advantage\/\">competitive advantage<\/a> or to avoid \u201canalysis paralysis.\u201d <a href=\"https:\/\/holdsworthcenter.org\/blog\/tool-for-decision-making-that-can-change-your-life\/?gclid=CjwKCAjwnPOEBhA0EiwA609ReVOSU2WPmG6FY_8AB7w16-1AMDA8IZrgDkE7N26GtFkQklPh2HShHBoCXgQQAvD_BwE\">Various tools and methods promote rapid decision making<\/a>.)<\/li><\/ul>\n\n\n\n<p>(Shortform note: In <em>Principles<\/em>, billionaire founder of Bridgewater Associates <a href=\"https:\/\/www.shortform.com\/blog\/who-is-ray-dalio\/\">Ray Dalio<\/a> offers further <a href=\"https:\/\/www.shortform.com\/app\/book\/principles-life-and-work\/part-2-6\">principles for decision-making<\/a>, including:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Systematize <a href=\"https:\/\/www.shortform.com\/blog\/integrative-decision-making\/\">decision making<\/a> to <a href=\"https:\/\/www.shortform.com\/blog\/emotional-avoidance\/\">avoid emotions<\/a>.&nbsp;<\/li><li>Don\u2019t take the first available option.<\/li><li>Consider second- and third-order consequences.<\/li><li>Make value calculations.)<\/li><\/ul>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Pros and Cons of Fast Decision-Making<\/strong><br><br>Since Drucker\u2019s time of writing, many other authors have analyzed the utility of fast decision making. In <a href=\"https:\/\/www.shortform.com\/app\/book\/blink\/introduction\"><em>Blink<\/em><\/a>, Malcolm Gladwell differentiates between conscious and <a href=\"https:\/\/www.shortform.com\/blog\/unconscious-decision-making\/\">unconscious decision making<\/a>, and he argues that unconscious decisions\u2014snap judgments or intuition\u2014have advantages over deliberation. The process is quick, efficient, and can generate good decisions. Further, he says that while bias is a downside of unconscious decision making, you can improve your ability to make snap judgments that are smarter and less biased.<br><br>In <a href=\"https:\/\/www.shortform.com\/app\/book\/thinking-fast-and-slow\/part-1-1\"><em>Thinking Fast and Slow<\/em><\/a>, Daniel Kahneman also differentiates between the <a href=\"https:\/\/www.shortform.com\/blog\/two-types-of-thinking\/\">two types of thinking<\/a>: He refers to <a href=\"https:\/\/www.shortform.com\/blog\/intuitive-thinking-2\/\">unconscious thinking<\/a> as <a href=\"https:\/\/www.shortform.com\/blog\/system-1-thinking-kahneman\/\">System 1 thinking<\/a> and conscious thinking as <a href=\"https:\/\/www.shortform.com\/blog\/system-2-thinking\/\">System 2 thinking<\/a>. But in contrast to Gladwell, he\u2019s more concerned about how often snap judgments can be wrong, and about adjusting for bias and overconfidence in our gut instincts with System 2 thinking.<br><br>While Drucker advises against fast decisions above, his process for decision-making also accounts for potential bias by actively seeking dissenting views, which we discuss further below.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Steps for Decision-Making<\/strong><\/h3>\n\n\n\n<p>In this section, we\u2019ll first introduce Peter Drucker\u2019s executive decision-making steps and comment on his process as a whole, and then examine each step more closely and conclude with a discussion of cultivating dissent.<\/p>\n\n\n\n<p><strong>Step 1: Determine whether the situation requiring a decision is typical or unique.<\/strong> If it\u2019s typical, it can be solved by applying a principle or rule.<\/p>\n\n\n\n<p><strong>Step 2:<\/strong> Determine the objectives the decision must meet, and the limitations or constraints (such as budget) affecting the solution.<\/p>\n\n\n\n<p><strong>Step 3: In considering options, focus on the <\/strong><strong><em>right<\/em><\/strong><strong> action rather than the <\/strong><strong><em>acceptable<\/em><\/strong><strong> action<\/strong> (this sets a benchmark before making any compromises or concessions with the decision).<\/p>\n\n\n\n<p><strong>Step 4: <\/strong>As part of the decision, determine how it will be implemented (otherwise, it\u2019s just an intention).<\/p>\n\n\n\n<p><strong>Step 5: <\/strong>Establish a feedback mechanism for testing whether the decision works.<\/p>\n\n\n\n<p>(Shortform note: In addition to Drucker\u2019s five-step process for decision-making, he goes on to discuss another critical aspect of decision-making: cultivating dissent. His exploration of this aspect separately suggests he didn\u2019t consider his five steps to be all-inclusive. Drucker didn\u2019t further develop or refine his ideas on decision-making in later writing, as he did with other key ideas.)<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Comparison With Other Decision-Making Processes<\/strong><br><br>Although there are variations, business textbooks and leadership programs teach these <a href=\"https:\/\/www.lucidchart.com\/blog\/decision-making-process-steps\">typical steps for making decisions<\/a>:Identify the decision (the problem you must solve or question you must answer).Gather the relevant information (from both internal and external sources).Identify the options.Weigh the pros and cons of each option.Choose among the options (make your decision).Take action (<a href=\"https:\/\/www.shortform.com\/blog\/create-a-plan\/\">create a plan<\/a> and assign tasks).Review your decision (ultimately, what worked and what didn\u2019t).<br><br>This process differs from Drucker\u2019s first two steps of categorizing the decision and determining parameters, and his fourth step of focusing on right versus acceptable. These are bigger-picture elements not included in typical decision-making processes.<br><br><strong>Gallup Process<\/strong><br>The Gallup organization proposes a <a href=\"https:\/\/www.gallup.com\/workplace\/310439\/steps-effective-decision-making-organizations.aspx\">three-phase process encompassing 12 steps<\/a>, which mostly align with Drucker\u2019s (except for Steps 1 and 4). The phases are:Foundation: Key steps\u2014Understand the purpose and nature of the decision required; gather relevant data; involve relevant people.Development: Key steps\u2014Clarify roles, encourage debate, develop a plan including contingencies.Realization: Key steps\u2014Communicate the plan and ensure follow-through; identify lessons for future decisions.<br><br><strong>Linear vs. Circular<\/strong><br>While typical decision-making processes are linear, a <em>Harvard Business Review<\/em> article argues that <a href=\"https:\/\/hbr.org\/2021\/04\/11-myths-about-decision-making\">making decisions should be circular<\/a>. The process should operate as a feedback loop in which you gather information, analyze it, factor it into your thinking, adjust your preferred solution, gather more information, and so on.<br><br><strong>Methods vs. Processes<\/strong><br>Note that decision-making <em>methods<\/em> (centered on who will make the decision) differ from the <em>processes<\/em> described above. <em>Crucial Conversations<\/em> describes four methods: <a href=\"https:\/\/www.shortform.com\/app\/book\/crucial-conversations\/chapter-9\">command, consult, vote, and consensus<\/a>. While Drucker doesn\u2019t discuss methods, his practices for <a href=\"https:\/\/www.shortform.com\/blog\/effective-decision-making-how-to-make-good-decisions\/\">effective decision-making<\/a> are aimed at executives. Therefore, he\u2019s using a command or command-consult method, in which the executive takes charge of making decisions.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Step 1: Is the Situation Typical or Unique?<\/strong><\/h4>\n\n\n\n<p><strong>Drucker\u2019s first step is asking whether the situation requiring a decision is typical or unique:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>If it\u2019s typical, the answer is to apply a principle, policy, or rule that\u2019s worked before and will work in the future. For example, if you continually run out of certain office supplies, require employees to log the supplies they take when they leave the supply room.<\/li><li>If the situation is unique, it will need a unique solution.<\/li><\/ul>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Step 2: What Are the Objectives and Limitations?<\/strong><\/h4>\n\n\n\n<p><strong>Drucker\u2019s second step for making effective decisions is understanding what objectives the decision must accomplish to be considered successful.<\/strong> In addition, it\u2019s important to understand any limitations that might apply. Limitations are constraints\u2014for example, a tight budget\u2014that limit the possible solutions. The objectives and limitations need to be clearly defined, so you can come up with an effective solution; otherwise, you won\u2019t be sure of what you\u2019re trying to achieve.<\/p>\n\n\n\n<p>For example, your objective might be to speed up new product development by streamlining your company\u2019s processes and removing bottlenecks. However, the need to support a culture of creativity and innovation (your \u201cconstraint\u201d) would prevent you from enacting strict procedures, reporting requirements, and deadlines. So the solution might be <a href=\"https:\/\/www.shortform.com\/blog\/how-to-improve-team-culture\/\">improving teamwork<\/a> and removing bureaucratic hurdles, or implementing a fast-testing method.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Understanding the Decision\u2019s Nature and Parameters<\/strong><br><br>Drucker doesn\u2019t explain how to determine your objectives and limitations. However, other decision-making processes offer a place to start: First, define the decision (identify and understand the problem you must solve or question you must answer). To understand the problem, a <em>Harvard Business Review<\/em> article, \u201c<a href=\"https:\/\/hbr.org\/2012\/09\/are-you-solving-the-right-problem\">Are you Solving the Right Problem?\u201d<\/a>, recommends these steps:Establish the need for a solution (ask: What\u2019s the basic need and the desired outcome?)Justify the need (What\u2019s the benefit to the company and how will we measure it?)Put the problem in context (What solutions have we and others tried; what are the internal and external constraints on implementing a solution?)Write a problem statement (What requirements must the solution meet; how will solutions be evaluated?)<br><br>Once you fully understand the problem, you\u2019ll be better able to define your objectives and see your limitations.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Step 3: What\u2019s the Right Thing to Do?<\/strong><\/h4>\n\n\n\n<p>Drucker\u2019s third step in making an effective decision is, when considering options, focusing on what\u2019s right rather than on what will be acceptable to those involved.&nbsp;<\/p>\n\n\n\n<p>In many cases, you\u2019ll have to compromise in the end. But by starting with what you think is the right solution based on the objectives and conditions, Drucker argues you\u2019ll have a standard for differentiating good from bad compromises. A half-a-loaf compromise will still satisfy some objectives or conditions, while a poor compromise won\u2019t satisfy any.<\/p>\n\n\n\n<p>(Shortform note: In <em>Never Split the Difference, <\/em>Chris Voss argues against <a href=\"https:\/\/www.shortform.com\/app\/book\/never-split-the-difference\/chapter-6\">compromise as a lazy way of making a decision<\/a>\u2014because you\u2019re accepting half a loaf without working through the risk, uncertainty, and conflict that lead to the best solutions. Further, he says compromise is more often a win-lose approach, like paying a ransom, than <a href=\"https:\/\/www.shortform.com\/blog\/the-law-of-influence\/\">a win-win<\/a>).&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Step 4: How Will You Implement the Decision?<\/strong><\/h4>\n\n\n\n<p><strong>Drucker\u2019s fourth step in decision-making is knowing how you\u2019ll implement the decision.<\/strong> It won\u2019t become a reality unless you build in the steps for carrying it out. He advises determining:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Who needs to be informed of this decision?<\/li><li>What needs to be done and who needs to do it?<\/li><li>What capabilities do those taking the action need to have?<\/li><li>What are the right measurements of success and incentives for accomplishment?&nbsp;<\/li><\/ul>\n\n\n\n<p>(Shortform note: <a href=\"https:\/\/www.dvesolutions.com.au\/2018\/05\/29\/six-crucial-steps-to-creating-an-implementation-plan\/\">Other implementation steps<\/a> are: identifying outcomes and assigning a champion for each outcome, creating a tracking sheet, and following a project management methodology.)<\/p>\n\n\n\n<p>Drucker says the fact that companies often overlook defining and carrying out the implementation steps is a reason people are often cynical about company or manager statements: They don\u2019t expect or see follow-through. (Shortform note: A <em>Forbes<\/em> article cites lack of manager follow-through as <a href=\"https:\/\/www.forbes.com\/sites\/forbescoachescouncil\/2018\/02\/26\/is-a-lack-of-follow-through-costing-you-credibility-four-steps-to-protect-the-perception-of-your-leadership\/?sh=d106da562ba0\">a key reason employees don\u2019t trust leaders<\/a>.)<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Step 5: How Will You Follow Up?<\/strong><\/h4>\n\n\n\n<p><strong>Drucker\u2019s fifth and final step is getting feedback to determine whether the decision or solution is working.<\/strong> This step is important because decisions are sometimes wrong, or the solution needs to be adjusted due to aspects that don\u2019t work or to changed conditions.<\/p>\n\n\n\n<p>(Shortform note: The U.S. experience in Iraq illustrates Drucker\u2019s point about adjusting to changing conditions. In <a href=\"https:\/\/www.shortform.com\/app\/book\/team-of-teams\"><em>Team of Teams<\/em><\/a>, Gen. Stanley McChrystal details how the U.S. Joint Special Operations Task Force needed to drastically reorganize and adopt new tactics in response to the rise of Al Qaeda and its disruptive strategy of quick bombing strikes by small, decentralized, agile teams.)<\/p>\n\n\n\n<p>Drucker says the best way to determine whether a solution is working is the military way: Personally observe the situation on the ground. He adds that leaders <strong>not knowing what\u2019s really happening is a common reason activities outlive their usefulness.<\/strong> Therefore, leaders should constantly check plans against reality.<\/p>\n\n\n\n<p>(Shortform note: Many project management methodologies make follow-up more structured than it was in Drucker\u2019s time by building in a formal <a href=\"https:\/\/www.mindtools.com\/pages\/article\/newPPM_74.htm\">post-implementation review (PIR) process<\/a>, including steps such as conducting a \u201cgap analysis\u201d that compares expectations against results.)<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Cultivate Dissent<\/strong><\/h3>\n\n\n\n<p>Besides his five-step <a href=\"https:\/\/www.shortform.com\/blog\/rational-decision-making-process\/\">decision-making process<\/a>, Drucker advocates <strong>making sure you hear divergent and conflicting opinions before taking action<\/strong>. He says a leader should purposely create disagreement in order to fully understand the issue and the alternative solutions. Good decisions are made not by acclamation or consensus, but by dialogue and conflict, followed by the decision-maker\u2019s judgment among the various points of view.&nbsp;<\/p>\n\n\n\n<p>(Shortform note: Presumably, Drucker is again referring to strategic decisions necessarily made by leadership, rather than decisions by teams or mid-level managers who may need to get buy-in to implement decisions effectively. <a href=\"https:\/\/www.quickbase.com\/blog\/is-consensus-decision-making-really-necessary\">Consensus decision-making may be useful in teams<\/a> where the decision is critical, requires everyone\u2019s commitment, and affects the team\u2019s long-term performance. However, there are also <a href=\"https:\/\/www.thebalancecareers.com\/consensus-decision-making-pros-and-cons-4178335\">downsides to consensus decisions<\/a> similar to those that can occur when leaders fail to cultivate dissent or when they stifle it. They fall under the umbrella of <a href=\"https:\/\/www.shortform.com\/blog\/causes-of-groupthink\/\">groupthink<\/a>, which we\u2019ll discuss below.)<\/p>\n\n\n\n<p>Specifically, Drucker says disagreement is valuable because:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>It helps the decision-maker avoid succumbing to anyone\u2019s personal interests or special pleas.<\/li><li>It may provide an alternative you can fall back on if your decision turns out to be wrong (you\u2019ll have another option you\u2019ve already thought through).<\/li><li>It can trigger creativity and insight by suggesting a different way of understanding the situation.<\/li><\/ul>\n\n\n\n<p>Perhaps the best-known historical example of a leader who welcomed dissent is Abraham Lincoln. (Shortform note: As recounted in <a href=\"https:\/\/www.amazon.com\/Team-Rivals-Political-Abraham-Lincoln\/dp\/0743270754\"><em>Team of Rivals<\/em><\/a> by historian Doris Kearns Goodwin, Lincoln built his cabinet around three fierce political opponents\u2014William <a href=\"https:\/\/www.shortform.com\/blog\/william-henry-seward\/\">Seward<\/a>, Salmon Chase, and Edward Bates\u2014to ensure he would hear a range of ideas for preserving the Union and winning the Civil War. By some accounts, former <a href=\"https:\/\/www.shortform.com\/app\/book\/a-warning\/chapter-3\">President Trump was Lincoln\u2019s polar opposite<\/a>\u2014punishing dissent and boasting about his superior knowledge and gut instincts.)<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>What Is Constructive Dissent?<\/strong><br><br>Constructive dissent has become a more recent buzzword for encouraging disagreement. A Harvard Law blog defines it as <a href=\"https:\/\/www.pon.harvard.edu\/daily\/leadership-skills-daily\/collaborative-leadership-managing-constructive-conflict\/\">disagreeing in a way that respectfully and productively challenges others\u2019 views<\/a>. \u201cCollaborative\u201d leaders must not only promote conflict but also manage it constructively\u2014that is, by using disagreement to open up new perspectives and ensure a rigorous decision-making process.<br><br>To ensure that dissent is constructive, the article recommends:Remind team members they don\u2019t have to be right, but should be ready to disagree to help the team make a good decision.Encourage team members to share their reasoning rather than simply present data for their point of view. Ask: \u201cWhat\u2019s your logic?\u201dExpect things to occasionally become heated: If disagreements get out of hand, encourage people to reveal the true concerns behind accusations.<br><br><strong>How to Encourage Constructive Dissent<\/strong><br>The consulting firm <a href=\"https:\/\/hbr.org\/2017\/01\/true-leaders-believe-dissent-is-an-obligation\">McKinsey &amp; Co. instructs every new hire that they have \u201can obligation to dissent\u201d<\/a>\u2014that is, the most junior person in a meeting is deemed, and expected, to disagree with the most senior person. No one is expected to agree with everything the boss says. The company believes that practicing the obligation to dissent leads to the best ideas and outcomes, and employees feel empowered in this environment.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Make Sure a Decision Is Necessary<\/strong><\/h3>\n\n\n\n<p>When you\u2019ve thought through your objectives, encouraged disagreement, explored the alternatives, and are thus ready to <a href=\"https:\/\/www.shortform.com\/blog\/be-decisive\/\">make a decision<\/a>, Drucker recommends that you pause for a moment and <strong>make sure a decision is necessary.<\/strong> He likens decisions to surgery\u2014when you intervene, you risk upsetting the system. Unnecessary surgery and unnecessary decisions are both too risky.&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>A decision is <em>necessary<\/em> when a situation will get worse if you don\u2019t act, or an opportunity will be lost if you don\u2019t seize it.&nbsp;<\/li><li>A decision is <em>unnecessary<\/em> if the problem will take care of itself without action, if the situation is unimportant, or if a decision will make little difference.<\/li><li>A decision may be worth making if it will improve things (if the benefit of acting outweighs the risk).<\/li><\/ul>\n\n\n\n<p>(Shortform note: Drucker\u2019s final point about ensuring that a decision is necessary before you make one aligns with his opening argument that executives should make only a few key decisions. His motivation was to avoid wasting time on routine decisions that could be handled automatically by policies and rules. However, research since Drucker\u2019s time of writing suggests another reason for making fewer decisions\u2014you\u2019ll make better ones. As you make many decisions in the course of a day, their quality declines: You suffer from <a href=\"https:\/\/www.forbes.com\/sites\/womensmedia\/2019\/05\/13\/how-to-identify-when-youre-experiencing-decision-fatigue\/?sh=5a3a0ffd7fb4\">decision fatigue<\/a>.)<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Don\u2019t Try to Be Popular<\/strong><\/h4>\n\n\n\n<p>It\u2019s difficult to make a decision that will be unpopular, but Drucker warns, <strong>don\u2019t be tempted to delay it for more study in order to put off the negative reaction<\/strong>. As an executive, you\u2019re paid to get the right things done\u2014which requires making effective decisions, no matter how unpopular they may be. (Shortform note: A <em>Harvard Business Review<\/em> article suggests several <a href=\"https:\/\/hbr.org\/2018\/04\/how-to-get-people-to-accept-a-tough-decision\">ways to make unpopular decisions more palatable<\/a>\u2014for example, framing the harm as a sacrifice for the greater good.)<\/p>\n","protected":false},"excerpt":{"rendered":"<p>How should executives make decisions? What are some things you can do to streamline your decision-making process? Executives\u2019 decisions significantly affect the entire organization and its performance. Therefore, effectiveness in this area is a must. Management consultant Peter Drucker advocates a five-step approach to executive decision-making. In this article, we\u2019ll first introduce Drucker\u2019s decision-making steps and compare them to other executive decision-making approaches.<\/p>\n","protected":false},"author":7,"featured_media":6348,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[45,14],"tags":[382],"class_list":["post-38672","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-management","tag-the-effective-executive","","tg-column-two"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.3 (Yoast SEO v24.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Peter Drucker on Executive Decision-Making - Shortform Books<\/title>\n<meta name=\"description\" content=\"Executives\u2019 decisions profoundly affect the entire organization. Peter Drucker advocates a five-step approach to executive decision-making.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.shortform.com\/blog\/executive-decision-making\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Peter Drucker on Executive Decision-Making\" \/>\n<meta property=\"og:description\" content=\"Executives\u2019 decisions profoundly affect the entire organization. Peter Drucker advocates a five-step approach to executive decision-making.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.shortform.com\/blog\/executive-decision-making\/\" \/>\n<meta property=\"og:site_name\" content=\"Shortform Books\" \/>\n<meta property=\"article:published_time\" content=\"2021-06-04T00:54:00+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2021-08-14T17:02:58+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.shortform.com\/blog\/wp-content\/uploads\/2020\/01\/mindset-leadership-weaknesses.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"959\" \/>\n\t<meta property=\"og:image:height\" content=\"611\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Darya Sinusoid\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Darya Sinusoid\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"12 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.shortform.com\/blog\/executive-decision-making\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/executive-decision-making\/\"},\"author\":{\"name\":\"Darya Sinusoid\",\"@id\":\"https:\/\/www.shortform.com\/blog\/#\/schema\/person\/0421cce75bc249b11e2517b3a91f9c46\"},\"headline\":\"Peter Drucker on Executive Decision-Making\",\"datePublished\":\"2021-06-04T00:54:00+00:00\",\"dateModified\":\"2021-08-14T17:02:58+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/executive-decision-making\/\"},\"wordCount\":2640,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/#organization\"},\"image\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/executive-decision-making\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.shortform.com\/blog\/wp-content\/uploads\/2020\/01\/mindset-leadership-weaknesses.jpg\",\"keywords\":[\"The Effective Executive\"],\"articleSection\":[\"Business\",\"Management\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.shortform.com\/blog\/executive-decision-making\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.shortform.com\/blog\/executive-decision-making\/\",\"url\":\"https:\/\/www.shortform.com\/blog\/executive-decision-making\/\",\"name\":\"Peter Drucker on Executive Decision-Making - Shortform Books\",\"isPartOf\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/executive-decision-making\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/executive-decision-making\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.shortform.com\/blog\/wp-content\/uploads\/2020\/01\/mindset-leadership-weaknesses.jpg\",\"datePublished\":\"2021-06-04T00:54:00+00:00\",\"dateModified\":\"2021-08-14T17:02:58+00:00\",\"description\":\"Executives\u2019 decisions profoundly affect the entire organization. Peter Drucker advocates a five-step approach to executive decision-making.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/executive-decision-making\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.shortform.com\/blog\/executive-decision-making\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.shortform.com\/blog\/executive-decision-making\/#primaryimage\",\"url\":\"https:\/\/www.shortform.com\/blog\/wp-content\/uploads\/2020\/01\/mindset-leadership-weaknesses.jpg\",\"contentUrl\":\"https:\/\/www.shortform.com\/blog\/wp-content\/uploads\/2020\/01\/mindset-leadership-weaknesses.jpg\",\"width\":959,\"height\":611},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.shortform.com\/blog\/executive-decision-making\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.shortform.com\/blog\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Peter Drucker on Executive Decision-Making\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.shortform.com\/blog\/#website\",\"url\":\"https:\/\/www.shortform.com\/blog\/\",\"name\":\"Shortform Books\",\"description\":\"The World&#039;s Best Book Summaries\",\"publisher\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.shortform.com\/blog\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/www.shortform.com\/blog\/#organization\",\"name\":\"Shortform Books\",\"url\":\"https:\/\/www.shortform.com\/blog\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.shortform.com\/blog\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/www.shortform.com\/blog\/wp-content\/uploads\/2019\/06\/logo-equilateral-with-text-no-bg.png\",\"contentUrl\":\"https:\/\/www.shortform.com\/blog\/wp-content\/uploads\/2019\/06\/logo-equilateral-with-text-no-bg.png\",\"width\":500,\"height\":74,\"caption\":\"Shortform Books\"},\"image\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/#\/schema\/logo\/image\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.shortform.com\/blog\/#\/schema\/person\/0421cce75bc249b11e2517b3a91f9c46\",\"name\":\"Darya Sinusoid\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.shortform.com\/blog\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/www.shortform.com\/blog\/wp-content\/uploads\/2021\/07\/Untitled-design-1.png\",\"contentUrl\":\"https:\/\/www.shortform.com\/blog\/wp-content\/uploads\/2021\/07\/Untitled-design-1.png\",\"caption\":\"Darya Sinusoid\"},\"description\":\"Darya\u2019s love for reading started with fantasy novels (The LOTR trilogy is still her all-time-favorite). Growing up, however, she found herself transitioning to non-fiction, psychological, and self-help books. She has a degree in Psychology and a deep passion for the subject. She likes reading research-informed books that distill the workings of the human brain\/mind\/consciousness and thinking of ways to apply the insights to her own life. Some of her favorites include Thinking, Fast and Slow, How We Decide, and The Wisdom of the Enneagram.\",\"url\":\"https:\/\/www.shortform.com\/blog\/author\/darya\/\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Peter Drucker on Executive Decision-Making - Shortform Books","description":"Executives\u2019 decisions profoundly affect the entire organization. Peter Drucker advocates a five-step approach to executive decision-making.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.shortform.com\/blog\/executive-decision-making\/","og_locale":"en_US","og_type":"article","og_title":"Peter Drucker on Executive Decision-Making","og_description":"Executives\u2019 decisions profoundly affect the entire organization. Peter Drucker advocates a five-step approach to executive decision-making.","og_url":"https:\/\/www.shortform.com\/blog\/executive-decision-making\/","og_site_name":"Shortform Books","article_published_time":"2021-06-04T00:54:00+00:00","article_modified_time":"2021-08-14T17:02:58+00:00","og_image":[{"width":959,"height":611,"url":"https:\/\/www.shortform.com\/blog\/wp-content\/uploads\/2020\/01\/mindset-leadership-weaknesses.jpg","type":"image\/jpeg"}],"author":"Darya Sinusoid","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Darya Sinusoid","Est. reading time":"12 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.shortform.com\/blog\/executive-decision-making\/#article","isPartOf":{"@id":"https:\/\/www.shortform.com\/blog\/executive-decision-making\/"},"author":{"name":"Darya Sinusoid","@id":"https:\/\/www.shortform.com\/blog\/#\/schema\/person\/0421cce75bc249b11e2517b3a91f9c46"},"headline":"Peter Drucker on Executive Decision-Making","datePublished":"2021-06-04T00:54:00+00:00","dateModified":"2021-08-14T17:02:58+00:00","mainEntityOfPage":{"@id":"https:\/\/www.shortform.com\/blog\/executive-decision-making\/"},"wordCount":2640,"commentCount":0,"publisher":{"@id":"https:\/\/www.shortform.com\/blog\/#organization"},"image":{"@id":"https:\/\/www.shortform.com\/blog\/executive-decision-making\/#primaryimage"},"thumbnailUrl":"https:\/\/www.shortform.com\/blog\/wp-content\/uploads\/2020\/01\/mindset-leadership-weaknesses.jpg","keywords":["The Effective Executive"],"articleSection":["Business","Management"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/www.shortform.com\/blog\/executive-decision-making\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/www.shortform.com\/blog\/executive-decision-making\/","url":"https:\/\/www.shortform.com\/blog\/executive-decision-making\/","name":"Peter Drucker on Executive Decision-Making - Shortform Books","isPartOf":{"@id":"https:\/\/www.shortform.com\/blog\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.shortform.com\/blog\/executive-decision-making\/#primaryimage"},"image":{"@id":"https:\/\/www.shortform.com\/blog\/executive-decision-making\/#primaryimage"},"thumbnailUrl":"https:\/\/www.shortform.com\/blog\/wp-content\/uploads\/2020\/01\/mindset-leadership-weaknesses.jpg","datePublished":"2021-06-04T00:54:00+00:00","dateModified":"2021-08-14T17:02:58+00:00","description":"Executives\u2019 decisions profoundly affect the entire organization. Peter Drucker advocates a five-step approach to executive decision-making.","breadcrumb":{"@id":"https:\/\/www.shortform.com\/blog\/executive-decision-making\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.shortform.com\/blog\/executive-decision-making\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.shortform.com\/blog\/executive-decision-making\/#primaryimage","url":"https:\/\/www.shortform.com\/blog\/wp-content\/uploads\/2020\/01\/mindset-leadership-weaknesses.jpg","contentUrl":"https:\/\/www.shortform.com\/blog\/wp-content\/uploads\/2020\/01\/mindset-leadership-weaknesses.jpg","width":959,"height":611},{"@type":"BreadcrumbList","@id":"https:\/\/www.shortform.com\/blog\/executive-decision-making\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.shortform.com\/blog\/"},{"@type":"ListItem","position":2,"name":"Peter Drucker on Executive Decision-Making"}]},{"@type":"WebSite","@id":"https:\/\/www.shortform.com\/blog\/#website","url":"https:\/\/www.shortform.com\/blog\/","name":"Shortform Books","description":"The World&#039;s Best Book Summaries","publisher":{"@id":"https:\/\/www.shortform.com\/blog\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.shortform.com\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/www.shortform.com\/blog\/#organization","name":"Shortform Books","url":"https:\/\/www.shortform.com\/blog\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.shortform.com\/blog\/#\/schema\/logo\/image\/","url":"https:\/\/www.shortform.com\/blog\/wp-content\/uploads\/2019\/06\/logo-equilateral-with-text-no-bg.png","contentUrl":"https:\/\/www.shortform.com\/blog\/wp-content\/uploads\/2019\/06\/logo-equilateral-with-text-no-bg.png","width":500,"height":74,"caption":"Shortform Books"},"image":{"@id":"https:\/\/www.shortform.com\/blog\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/www.shortform.com\/blog\/#\/schema\/person\/0421cce75bc249b11e2517b3a91f9c46","name":"Darya Sinusoid","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.shortform.com\/blog\/#\/schema\/person\/image\/","url":"https:\/\/www.shortform.com\/blog\/wp-content\/uploads\/2021\/07\/Untitled-design-1.png","contentUrl":"https:\/\/www.shortform.com\/blog\/wp-content\/uploads\/2021\/07\/Untitled-design-1.png","caption":"Darya Sinusoid"},"description":"Darya\u2019s love for reading started with fantasy novels (The LOTR trilogy is still her all-time-favorite). Growing up, however, she found herself transitioning to non-fiction, psychological, and self-help books. She has a degree in Psychology and a deep passion for the subject. She likes reading research-informed books that distill the workings of the human brain\/mind\/consciousness and thinking of ways to apply the insights to her own life. Some of her favorites include Thinking, Fast and Slow, How We Decide, and The Wisdom of the Enneagram.","url":"https:\/\/www.shortform.com\/blog\/author\/darya\/"}]}},"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"https:\/\/www.shortform.com\/blog\/wp-content\/uploads\/2020\/01\/mindset-leadership-weaknesses.jpg","_links":{"self":[{"href":"https:\/\/www.shortform.com\/blog\/wp-json\/wp\/v2\/posts\/38672","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.shortform.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.shortform.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.shortform.com\/blog\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/www.shortform.com\/blog\/wp-json\/wp\/v2\/comments?post=38672"}],"version-history":[{"count":6,"href":"https:\/\/www.shortform.com\/blog\/wp-json\/wp\/v2\/posts\/38672\/revisions"}],"predecessor-version":[{"id":45341,"href":"https:\/\/www.shortform.com\/blog\/wp-json\/wp\/v2\/posts\/38672\/revisions\/45341"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.shortform.com\/blog\/wp-json\/wp\/v2\/media\/6348"}],"wp:attachment":[{"href":"https:\/\/www.shortform.com\/blog\/wp-json\/wp\/v2\/media?parent=38672"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.shortform.com\/blog\/wp-json\/wp\/v2\/categories?post=38672"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.shortform.com\/blog\/wp-json\/wp\/v2\/tags?post=38672"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}