The basic procedure of enterprise management decision ① Find out the problem and determine the goal. That is, investigate and study, analyze problems, find out the key to solving problems, and determine decision-making objectives accordingly. Decision goals can be divided into goals that must be achieved and goals that must be achieved. According to decision-making practice, we should pay attention to several problems in establishing decision-making objectives: first, distinguish between primary and secondary, and grasp the main objectives; Second, we must maintain the consistency of various goals, cooperate with each other and connect with each other; Third, the goal should be as clear and specific as possible, and strive to quantify it for measurement; The fourth is to clearly regulate the constraints of decision-making objectives. Only by comprehensively considering various factors can we achieve the goal.
(2) to formulate the selected scheme. That is, according to the requirements of decision-making objectives, seek and formulate various schemes to achieve the objectives. When making plans, we must pay attention to the following aspects: first, put forward as many different plans as possible for analysis, comparison and selection; Second, drawing up the scheme is an innovative process, which requires both seeking truth from facts and stressing science, and being brave enough to break away from convention and be innovative. Third, it is necessary to carefully design, conduct detailed technical and economic argumentation, consider the positive and negative effects of each scheme, and find out potential problems.
(3) Evaluate and select schemes and make decisions. That is, choose a satisfactory scheme from the selected scheme. In the evaluation and selection of the scheme, we should pay attention to the following problems: first, we must determine the evaluation criteria, and all the energy should be specified by quantitative standards; If it is difficult to quantify, try to choose a detailed qualitative description; If the scoring method is used as a comprehensive evaluation, it is necessary to clarify the scoring standards and grades. The second is to review the reliability of the scheme, that is, whether the information and data provided are scientific, complete and accurate. Third, we should pay attention to the comparability and differences between the schemes, transform the incomparable factors into comparable factors, and pay attention to the comparative analysis of their differences. Fourth, we should compare the advantages and disadvantages, take into account the possible adverse effects and potential problems, weigh the advantages and disadvantages, and make the right decision.
④ Implementation and tracking of the scheme. Once the plan is selected, it must be organized and implemented, and the responsibility must be implemented to people. In the process of implementation, it is necessary to know the implementation situation and take measures or adjust the plan to achieve the expected decision-making objectives.
The trap that leads to business decision-making mistakes is strategizing and winning thousands of miles, which depicts the decisive role of strategic decision-making in the victory or defeat of war. I'm afraid it's no exaggeration to use this sentence in business wars. Although there is no sword on the battlefield, the competition in the business world is equally cruel. Especially in today's increasingly fierce competition, a slight mistake in company decision-making may lead to disaster. How to make appropriate and accurate business decisions in time in the fierce and turbulent market competition has become the key to determine whether the company can be in an invincible position.
Sun Tzu said:? Win first and then fight. ? It means to put yourself in an invincible position first and then find a chance to defeat the enemy. By the same token, if a company manager wants to make a correct decision, he must first find out what are the seven business decision traps that make many companies stumble. Then ask the company to decide how to bypass these reefs and shoals.
One of the traps: misjudgment of the competitive environment. Many company managers have wrongly recognized and judged the changes that have taken place in the competitive environment. Although many of them once occupied the leading position in the industry, they ignored or misunderstood the signs of changes in the competitive environment, which eventually led to serious erosion of their competitive advantage. To avoid decision-making mistakes caused by misjudging the competitive environment, we should first correctly define our own competitive space when analyzing the competitive environment, not only limited to existing competitors, but also bring all potential and new competitors into our field of vision. In addition, we must build an effective competitive information system to ensure the smooth flow of relevant information within the organization and make it properly handled and applied, which can provide a reliable and effective information platform for making correct business decisions.
Trap 2: biased assumptions. Many company managers base their decisions on a series of wrong preconditions, or they cannot update their business decisions with the changes of environmental conditions. People often say that the bitter taste of good medicine is good for the disease, which refers to this phenomenon. In order to get rid of this dilemma, company operators must always carefully verify some assumptions, premises and ideas they are used to. Some taken-for-granted preconditions are often adopted without careful consideration, and the resulting business decisions are very risky. In addition, all premises and assumptions should have strong consistency and can reflect each other within the overall business framework. At the same time, according to the difference in the importance of the company's business objectives, different premise assumptions can be classified and treated differently. Finally, don't forget that with the passage of time and the evolution of the environment, we must redefine various assumptions to ensure their effectiveness.
Trap 3: Self-weakening of competitive advantage. It stems from the adoption of unchangeable business objectives or a static view of business objectives, which leads to the company's inability to adapt to the changes in the external environment, the company's temporary strength can not be successfully transformed into a sustainable competitive advantage, and it is inevitable to fall behind in the market competition. Therefore, company operators must establish a global and dynamic consciousness, base the company's business activities on the process and pay attention to the company's value chain. And expand the company's activities to customers and suppliers. We must pay close attention to the advantages and disadvantages of each link of the company's value chain relative to competitors and create value in various forms around the value chain. We should strive to coordinate various value-added activities of the company, pay attention to the dynamic process of the competitive environment, and add unique value to the company in an innovative way. Only in this way can the company maintain a sustainable competitive advantage in the market.
Trap 4: blind expansion, value loss. Company managers often succumb to the impulse of blindly pursuing diversification regardless of their own conditions and blindly enter some business fields that they are not good at. The result is often not worth the loss, but it reduces the value base of the company. If you want to make achievements in diversified management, you must always stick to the core competitiveness of the company. The core competitiveness of the company is the foundation of the company in the market and the source of its competitive advantage. Therefore, in the process of company diversification, it is necessary to make new business areas bear the strong support of the company's core competitiveness and transform them into corresponding market competitive advantages, so as to obtain the synergistic effect in diversification. From the perspective of the company's value chain, whether new business can become a natural extension or an effective supplement to the existing value chain of the whole company should become an important weight in diversified business decision-making.
Trap 5: subject to organizational structure. In the traditional company organization, different departments have a clear division of labor and assume different functions and responsibilities. However, in the process of implementing the company's business decisions, the division of organizational structure often evolves into an insurmountable obstacle. Therefore, under the traditional organizational framework, it is really difficult to cross different functional departments, and then build an effective and coordinated overall system to dominate the core process. To break through this dilemma, we need to completely transform the traditional organizational structure. Create a novel form of boundaryless organization. Here, we also need to follow the concepts and methods of business process and value chain. First of all, we should make clear the atmosphere of business objectives and find out the key objects involved in business objectives and their relationships. Then design the corresponding organizational structure, and then realize the coordination and integration within the same organization and between different organizations. Only by setting clear goals, communicating effectively and using cross-functional organizations can all departments of the organization be decomposed and run smoothly.
Trap 6: Out of control. There are usually two reasons why companies are out of control: first, companies blindly pursue some subjective goals; Second, the company's decision-making control system is unbalanced, and it is impossible to reach a balance among company culture, incentive system and behavior norms. The traditional monitoring process of business decision consists of three parts: determining the specific business objectives of the company and making corresponding business decisions; Implement the final decision and evaluate the actual performance according to the set goals. Therefore, there is a time delay between business decision and control. This can cope with a relatively stable competitive environment, but in a changing environment, it will be stretched and even out of control. To make the implementation of business decisions in a controllable state, you must use? Double ring? The monitoring system and the target itself should also be evaluated in real time. Through the information in business decision-making and control, through the behavior in business decision-making implementation and control, the whole business decision-making control system is completed. And build a corporate culture consistent with the company's business objectives, improve the corresponding incentive mechanism, and establish an effective and feasible code of conduct. At the same time, it is necessary to promote the coordination between them and ensure that they can adapt to the changes of the external environment over time, and always maintain the indispensable flexibility of the company organization in the changing environment.
Trap 7: leadership failure. In the process of implementing company decisions, strong company leaders play a vital role in the ultimate success. However, we can often find that many companies' business decision makers are either headstrong or indecisive, turn a deaf ear to some basic principles, and cannot provide the strong leadership that companies urgently need when making business decisions. Such companies often fall into an embarrassing situation where they are helpless, and their business decisions often become elusive castles in the air. In order to successfully lead the company to achieve the established business goals, the company manager must create a sense of urgency for change in the organization and take action quickly and decisively; It is necessary to shape and convey the company's long-term plan and reach a specific action plan for the long-term plan; At the same time, it is necessary to set the company's goals and give them to the front-line employees widely, so that they can strive to achieve the company's business goals; In addition, we should constantly sum up the gains and losses in the implementation of business decisions and institutionalize the beneficial changes that have taken place. Only in this way can the company unite as one and make steady progress towards the established business goals.
In order to facilitate the company operators to truly understand the above seven traps, we still use the mistakes of giant companies to make a concrete analysis. The first mistake of the famous giant group was that it fell into the first trap, misjudged the competitive environment, and was blindly optimistic about the profitability of real estate when the economy was overheated in the mid-1990s. As a result, regardless of their core competence, they mistakenly bet the company's future chips on their incompetent real estate. This is blind diversification and self-destruction of company value, thus falling into the fourth trap. Moreover, after the rapid expansion of the company's scale, Giant Company did not adjust the corresponding business processes, and still used the original management methods, which could not adapt to the management complexity that accompanied the company's development. The whole company is far from being under normal control, and the functional departments and business departments cannot coordinate to produce the overall effect, which is precisely the fifth and sixth trap. When the real estate project led to the company's shortage of funds, the decision-makers of the giant company did not resolutely dismount, but repaired the wound and allocated funds from the health care products business to fill the bottomless pit of real estate, and never calmly evaluated whether they should get involved. This just falls into the second trap. As a result, not only the real estate industry is powerless, but also the health care products business is in a slump. Such mistakes in decision-making also doomed the later disaster of the giant company.
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