From the course: Executive Decision-Making

Executive vs. day-to-day decision making

From the course: Executive Decision-Making

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Executive vs. day-to-day decision making

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- There are three major considerations that separate executive decision making from day-to-day or managerial decision making. First, you have to think through the strategic impacts of the decision you're going to make. Look at how the decision affects your organization in the market, and what are your competitors going to do based on the decision that you make? Second, consider the financial impacts of the executive decision. It's not just the short-term financial impact that you have to look at. You also need to look at the long-term impacts on revenues, costs, profitability and even the company's value. The third consideration is the operational impacts of the executive decision. What are the changes to your people, your processes and even how you run your business based on the decision that you make? Some examples of true executive decisions include mergers and acquisitions, large-scale IT projects, going global with your organization, expanding the markets you operate in, and even layoffs or restructurings. To make good executive decisions, make sure you consider those strategic, financial and operational impacts, because when you do you'll have higher confidence in the short-term and long-term impacts of the decisions that you make.

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