Curated from Rahul Desai's Twitter thread on the book "McKinsey's Marvin Bower"
A May 19, 1950 memorandum on decision-making by Marvin Bower, former managing director of McKinsey & Company.
- Is the question pertinent now— does it fit in which management objectives, plans, and stream of events?
- Can the decision be made now? Will it disrupt present plans? Are subordinates capable of carrying it out? Is enough information available to decide?
- Have you the responsibility and authority to decide?
- Should higher authority decide? Should subordinate decide? Should some other executive decide?
- If the decision is not to decide now, let those concerned know— and the reasons why.
- Get all available facts bearing on problem or question— what, why, when, where, how, and who.
- Get opinions and judgments of persons concerned with questions or problems— if at all feasible.
- Go to heart of the matter. Determine which factor or factors limit or prevent achievement of the purpose with which decision is concerned. Subordinate parts to the whole.
- Reject from consideration all events, objects, details, and circumstances not pertinent to action now with means now available. "Keep eye on ball."
- Develop alternative solutions.
- Test alternative solutions for advantages and disadvantages from the standpoint of:
- Underlying purpose— for example, more profits in long run through better service to customers
- Immediate objectives and policies
- Cost
- Effect on personnel
- Moral codes— rightness and reasonableness in light of own and store's codes of square shooting
- Break required action into simple parts, putting first things first.
- Get ideas from those concerned especially subordinates. "Millions are lost through discourages subordinates from expressing ideas." Use "consultative management." Admit things you don't know and mistakes made.
- Set a completion time or date and work backwards to get starting dates and proper timing.
- See that every individual understands what he is to do and why and that he is capable of doing it.
- Establish reasonable criteria for satisfactory performance.
- Follow up to eliminate difficulties and see that the decision is carried out.
- Review performance with subordinates concerned, so they will know how well they did. Be sure to emphasize points that will be helpful guides for their future action. (This is the on-the-job training— one of every executive's most important responsibilities.)