1. Solving Problems for Winning Results
www.BarraGwynn.com
4174 Hillside Avenue Norco CA 92860
[714] 271-0252
This document represents the intellectual property of Barra Gwynn Enterprises, and may only be used as specified in the cover letter
accompanying it.
October, 2013
Business Decision Making
The one sure thing in business, is that choices and decisions need to be made all the time!
From small, inconsequential choices to life changing decisions, everyone, not just business
people, make choices and decisions daily, hourly, even by the minute! So we deal from a
common definition, decisions are about assessing the risk situation of a an issue and/or
problem, and deciding on a course of actions; while a choice is the selection of known
options. As an example, the DECISION to go cross-country, is followed by the choices of
time, destination, transportation, etc. from a limited set of options. Some believe that a
decision includes all cases of when a business “rule” is made. A business decision is a
conscious and deliberate formulation that resolves a type, class or set of problem(s) into a
formal process that can be performed with or without management presence (i.e. Policy).
Overview:
Why are business decisions different? Aside from the basic concept that all business
decisions are most often on fact, not emotions, it can be said that eventually those
decisions are reflected in the “bottom line”. Business decision making is the next step
after business problem solving. Once a solution is found, it must be weighed as to the
whether and to what degree a business decision may be made. The main issue is whether a
problem or even its solution, requires a business decision.
Background
Business decisions need to be made when a problem:
 When there is an operating issue that conflicts with one of the business’ principles;
 Repeats itself;
 Causes a loss within current processes;
 Necessitates the business reinforce its personality, relationship and reputation; and
 Demonstrates that current processes need to be unified and consistent with reality.
As businesses grow they discover that they need more than a good problem solving
process, and that many aspects need to be codified and put into a disciplined manner of
dealing with situations. As in business problem solving, the hierarchy of the business helps
determine the level and type of business decision, as well as the best method to present it.
The five (5) levels of a business’ operations are:

2. Solving Problems for Winning Results
www.BarraGwynn.com
4174 Hillside Avenue Norco CA 92860
[714] 271-0252
This document represents the intellectual property of Barra Gwynn Enterprises, and may only be used as specified in the cover letter
accompanying it.
LEVEL ORGANIZATION COMMENT
Vision Board of Directors Sets the business culture
Strategy Executives Implements a consistent methodology
Tactics Directors Identifies and models the resources needed
Projects Managers Plans and leads scheduled efforts
Tasks Supervisors Coordinates and directs efforts to success
In general: the vision is captured in a Mission Statement; strategies are expressed as
Policies; tactics address procedures; projects produce manuals (how to); and tasks are the
firm’s basic documentation.
Decision Criteria:
Before a business decision is rendered, consistency in identification, criteria and potential
results all must be evaluated to assure the business will profit from the decision. While it
may seem obvious and necessary after a particularly prolonged, adversarial and acrimonious
interaction with a customer to immediately declare a policy that will hopefully avoid a
repeat of the matter, this is often a mistake without analysis!
It may be more appropriate to evaluate the data and situation, recognizing that the
decision addresses the overall business. First, the criteria that something is a policy issue
must be verified. Does the possible decision represent the vision of the business or even
the strategy being used to convert the vision to actions? If yes, then this is at the Policy
level. If no, then is this decision operating in the tactical level where the procedures
describe similar actions when presented with this type of problem? If so, then this should
be a procedure, which has a possibility of additional flexibility of some “interpretations’
and/or “executive review” for specific cases. If not, then this mater starts to fall into
the “rules” area where there is greater flexibility in implementation.
As an example, after an incident over exchange versus store credit where the customer
demanded a store credit rather than the informal policy of exchange, the reaction is to
immediately print and display signs that say “Exchange only, No credit”! One would hope
that the business model currently reflects that restocking, RMA and inventory costs were
first analyzed to determine the cost of returning the merchandise (even if only to the
shelf) which an exchange policy would cost. This is a major aspect, just as the probable
customer reaction to any given lately adopted policy.
Decision Process:

3. Solving Problems for Winning Results
www.BarraGwynn.com
4174 Hillside Avenue Norco CA 92860
[714] 271-0252
This document represents the intellectual property of Barra Gwynn Enterprises, and may only be used as specified in the cover letter
accompanying it.
The alignment of the business decision to its level also ties it to the most likely method of
presenting it. The firm’s vision should be clearly expressed in customer’s terms and known
to employees and customers. This not only declares the separation of this business from
all competitors, but sets expectations for ALL involved! If the decision is one
representing the strategies espoused and employed by the executives, it needs to be an
available and apparent Policy open to customers, employees and suppliers! The firm’s
tactics to implement the strategies are likely more internal than the above decisions, and
should be available as well as performed on daily by management to reinforce the desired
customer relationship. Some decisions are clearly needed that allow flexibility on issues
are not “above the horizon”. In other words, giving the employees flexibility to determine
the best solution for the customer on issues that neither are part of the vision nor the
policies of the firm, (with the guidelines clear) will enhance the customer experience and
the relationship between the customer and the firm. On more minor points that do not
affect the overall market presence of the firm, the need to publish the decision process
and firm’s position to the customer diminishes and need only be known and understood by
the employees.
Follow-up:
When initiating the process to decide if a decision should be made, a set of metrics and
objective criteria must be available. The criteria that is used to evaluate the profitability
and the effects of the possible decisions that may result, must be used to monitor the
real effects of the decision. Follow-up and review of objective criteria is mandatory to
assure that the firm is following a good business policy.
Summary:
Business Decisions need to be made to reinforce the firm’s niche, profitability, personality
and community relationship. The firm completes its position by presenting its policies and
positions in forums and formats that make sure customers, suppliers and employees all
understand the firm and its unique position. Expectations are clearly delivered and
understood in ways that each individual has a concise set of expectations that will be
performed by the firm. Therefore, there is value in evaluating any possible decision with
respect to the aspects of how the firm presents itself in the marketplace to customers,
employees and suppliers, and there are also considerations that exceeds the immediate
incident.