Decision Making Analysis by Jim Collins

Jim Collins is the author of two best-selling business books. Good to Great-Why Some Companies Make the Leap and Others Don't and Built to Last-Successful Habits of Visionary Companies . Both of these books examine the inner workings of successful companies, attempting to understand and codify what allows a company to separate itself from the rest.

Recently, Jim Collins was interviewed for Fortune magazine. The key points and reference are cited in the right column.

Decisions are often a "who" question rather than a "what"

The best way to prepare for uncertainty is to have the right people with you. Collins points out that the future is uncertain and it is impossible to always make the right decisions about which direction to take your company. Given this uncertainty, it is more important to surround yourself with great people, who are able to adapt to whatever situation arises.

Great decisions begin with really great people and a simple statement: I don't know

Great leaders produce a series of great decisions by being comfortable with stating, "I don't know." Leaders often make the mistake of defining leadership as making a decision and getting the rest of the organization to participate, applauding the leader's decision. This is not decision making nor is it leadership. It is egotism.

No major decision was ever taken at a point of unanimous agreement

A significant debate is a necessary and vital component before any major decision. Collins utilizes a ratio he terms the questions-to-statements ratio. Any discussion should attempt to increase this ratio, leading to conflict and debate. For his teams, he looks for people with an irreverent streak and independent thought. The end result is a culture built on disagreements. This way, the strong personality of any one member or CEO will not overwhelm the decision making ability of the team. The job of the CEO is to moderate the debate and then make the executive decision.

No decision, no matter how big, is any more than a small fraction of the total outcome

Collins emphasizes that decisions that seem to be big are just a small part of the entire outcome. It is a cumulative result. As he states, "...there are pivotal decisions, but it's really the stream of decisions over time, brilliantly executed, that accounts for great outcomes."

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Within the turmoil of the current practice of medicine and pathology, Jim Collins offers some sage advice on how to make a tough call. His books are a fascinating read.

Paul K. Shitabata, M.D.

Last Updated July 12, 2005