HBR On Leadership

The Secret to Making Difficult Decisions

24 snips
Oct 4, 2023
Joseph Badaracco, a Harvard Business School professor and author, discusses the complexities of decision-making in uncertain situations. He introduces his framework for navigating 'gray area problems' and emphasizes the importance of asking the right questions. Using real-world examples, he highlights the balance between analytical approaches and human judgment. Badaracco also discusses the necessity of aligning decisions with core values, engaging in open dialogue within teams, and learning from both successes and failures to navigate ethical challenges.
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ADVICE

Manager vs. Human

  • Approach gray area problems as a manager, gathering information and analyzing options.
  • Resolve them as a human being, making judgment calls based on who you are.
ADVICE

Net-Net Consequences

  • Consider the net-net consequences of your decisions by creating a decision tree.
  • Analyze different scenarios, their likelihood, and how your plan performs against them.
ANECDOTE

Malden Mills Fire

  • Malden Mills, a textile manufacturer, faced a devastating fire.
  • The owner, Aaron Feuerstein, prioritized his workers and rebuilt, but this led to bankruptcy.
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