Assume responsibility and make effective decisions in eight essential practices

Peter Drucker explains in the Harvard Business Review how the best decision-makers take full responsibility and translate plans into action.

During his 65-year consulting career, he realized that the best leaders of business enterprises or nonprofit organizations were by no means stereotypes, but personalities that were very diverse in their attitudes, values, strengths and weaknesses.

What made them effective was that they all followed the following eight practices:

1. ask: "what needs to be met?";
2. ask: "what is good for the business?";
3. develop action plans;
4. take responsibility for decisions;
5. take responsibility for communication;
6. focus on opportunities rather than problems;
7. conduct productive meetings;
8. think and say "we" rather than "I".

The first two practices gave them the knowledge they needed. The next four helped them convert their knowledge into action. The last two ensured that the entire organization took responsibility.

Acting

When translating projects into action, decision makers need to pay special attention to decision making, communication, opportunities (as opposed to problems), and working meetings.

Taking responsibility for decisions. A decision is only made when people know:

• the name of the person in charge of carrying it out;
• the project deadline;
• the names of the people who will be affected by that decision and therefore need to be informed, understand, and approve -- or at least not strongly oppose it;
• the names of the people who need to be informed of that decision, even if they are not directly affected by it.

In discussions and decision-making, it is most often assumed that only senior leaders make decisions and that only the decisions of senior leaders matter. This is a serious mistake. Decisions are made at all levels of the organization, starting with professional consultants and field supervisors.

These seemingly low levels of decisions are extremely important in a knowledge-based organization. Each employee knows more about his or her specialty -- tax accounting, for example -- than anyone else, so his or her decisions are likely to have an impact throughout the organization. Making good decisions is a critical skill at all levels. It must be explicitly taught to everyone in the organization.

For the full article: "What Makes an Effective Executive," Harvard Business Review , Vol. 82, No. 6, June 2004.