How to Make the Right Business Decisions

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