Haste Is Not the Same as Decisiveness

Boards decide well when they hear counsel that can change the course, name the risks already visible and complete the necessary work before commitment.

Daniel Chua

A major decision can spend months in committee and still be hasty. Another can be made in a day and rest on years of preparation.

Elapsed time is not the test. The people responsible need to frame the decision accurately, hear candid counsel, face the risks already visible and understand what they are committing themselves to do.

The book of Proverbs speaks often about listening, foresight, knowledge and haste. Those concerns remain relevant wherever people make decisions that affect an organisation, its employees, customers and owners.

Information alone does not produce judgement. Someone still has to determine which facts matter, which assumptions can be trusted and when the organisation is ready to act.

Counsel That Can Still Change the Course

Advice has value while the answer remains open.

A board may commission a report, consult advisers and hear several options while everyone in the room already knows the expected conclusion. The process appears thorough, but the preferred course never faces a serious test.

Rehoboam had access to two groups of advisers when he succeeded Solomon. The elders who had served his father urged restraint. The younger men who had grown up with him encouraged a harsher response.

He heard both groups and chose the counsel that reinforced the posture he already preferred. The kingdom divided.

Rehoboam’s failure was not a lack of advice. He was unwilling to let wise counsel correct his judgement.

The same dynamic appears in modern governing rooms.

A successful founder’s opinion carries the authority of past results. A chief executive can shape a meeting before speaking because directors already know where management stands. A respected chair can influence the outcome through the questions raised, the people invited into the discussion and the amount of time allowed for disagreement.

Authority will always affect the room. A sound decision process makes candid disagreement possible before commitment.

A chair can ask for the strongest case against a proposal. Directors can hear directly from the people responsible for execution. Management can identify the assumptions that would make its recommendation fail. The chief executive can listen before giving a final view.

These practices do not weaken authority. They improve the information and judgement available to those who must decide.

Boards and executives remain accountable for the final choice. They do not have to follow every piece of advice. They do need to preserve a genuine opportunity for counsel to alter the course.

Before a major decision, ask:

Whose counsel could still change our mind?

When the honest answer is nobody’s, consultation has become ceremonial.

Put Known Risk on the Table

Leaders cannot remove all uncertainty before deciding.

A company entering a new market cannot know exactly how competitors will respond. A board appointing a chief executive cannot predict every choice that person will make. An investor cannot guarantee the economic conditions that will prevail after capital has been committed.

Uncertainty is part of every consequential decision.

Known risk is different.

A company may already depend on one customer for most of its revenue. Debt may leave little room for an economic downturn. Every important decision may still require the founder’s approval. A senior executive may produce strong results while damaging capable people around him.

These risks already exist. The decision process should name them plainly.

Success can make this harder. Revenue growth can conceal weak economics. A favourable market can postpone the consequences of poor capital allocation. A highly capable founder can keep an immature organisation functioning longer than its structure deserves.

Once a risk has been named, the board can assign an owner, agree a response and decide whether the remaining exposure is acceptable.

Customer concentration may require a deliberate effort to diversify revenue. High debt may change the scale or timing of an acquisition. Dependence on the founder may require the transfer of specific decisions to other executives. Harmful conduct by a senior leader may require direct correction, regardless of financial performance.

Christian leaders can pray for wisdom while testing assumptions, examining the financial position and planning for an adverse outcome. Trust in God supports honest judgement. It does not require a board to ignore facts already in front of it.

Courage begins with reality.

Preparation Makes Speed Possible

Some decisions need to be made quickly.

A commercial opportunity may close. A crisis may require action before every fact is available. Delay may impose a greater cost than an imperfect choice.

Decisiveness means committing when enough is known and accepting responsibility for the result.

Preparation makes that possible.

Before a proposal reaches the board, the people bringing it should be able to state exactly what decision is required and why it is required now. They should identify the assumptions carrying the recommendation, the principal alternatives considered and the risks that could materially change the outcome.

The board should also know who will be responsible once the decision has been made and what future information would justify reviewing it.

A well-prepared decision paper does not need to contain every available fact. It should help the board see the choice, the reasoning and the consequences.

The same discipline applies when the decision belongs to an executive rather than a board. The executive should know what outcome is being pursued, what limits apply and what will happen after commitment.

Prepared organisations can often decide quickly because the substantive work took place before the formal meeting. Leaders know the numbers, understand the people involved and have heard disagreement while there is still time to respond.

The meeting becomes the place of commitment rather than the beginning of discovery.

Poor preparation creates a different kind of speed. Pressure builds, so the organisation acts before the decision has been framed properly. Questions that should have been answered earlier are treated as resistance to momentum.

A favourable outcome can then hide a weak process. The organisation concludes that preparation was unnecessary and carries the same weakness into the next decision.

Before a major commitment, three questions deserve a direct answer:

Whose counsel could still change our mind?

What danger can we already see?

Have we done enough work to decide?

They will not remove uncertainty. They will help the people responsible decide with their eyes open.