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