How to Make the Right
Business Decisions
The 4 Factors to Factor
Jason Nazar, CEO Docstoc
@jasonnazar
How to Make the Right Business Decisions:
4 Factors to Factor
(A) Potential (B) Likelihood
Upside of Success
(C) Effort (D) Strategic
Involved Value
How to Make the Right Business Decisions:
Formula
Key
A = Upside Potential: 1-5 Points
B = Likelihood of Success: 1-10 Points
C = Effort Involved: 1- 10 Points
D = Strategic Value: 1-3 Points
[(A x B) / C] x D
How to Make the Right Business Decisions:
Recommendations
Focus on Efforts with the
Highest Potential Upside
In the long run these will have the highest payouts for your
company
These should be the primary efforts taking the majority of
resources in the company
Be careful of decisions that have a low likelihood of
success or high efforts involved
How to Make the Right Business Decisions:
Recommendations
Complete Tasks with a
High Likelihood of Success
& Low Efforts Involved
These efforts are vital to both maintain what’s already
working & to make consistent incremental gain in new
areas
Avoid working on items with no strategic value
Don’t put off working on items with the largest potential
upside
How to Make the Right Business Decisions:
Recommendations
All Efforts Should Have
Strategic Value
Efforts with High Potential Upside should have the the
most scrutiny for strategic value
Completing tasks with a high likelihood of success, has
much greater importance depending on their strategic value
How to Make the Right Business Decisions:
Pitfalls
The Big Mistakes….
Complicated Efforts with No Big Upside and Low
Likelihood of Success and questionable Strategic Value
– this happens way more than it should
Continuously working on items with low likelihood of
success
Completing items with high likelihood of success
without regard to effort involved or potential upside