Peter F Drucker

The Effective Decision written by Peter F Drucker states that the executives job is to be effective, and that effectiveness can be learned. There are often many managers in an organization but not many make decisions that seriously affect the ability of an organization to perform. Drucker states that there are six sequential steps in the decision making process. These steps compare with the traditional eight step process in many ways.

The first step according to Drucker is to classify the problem. This would be known as identifying the problem according to the eight step process. An effective decision maker must decide if the problem is just a fluke or something that needs to be examined intensely. He states that generic problems can be handled pragmatically that require a rule or policy. The unique problems must be analyzed and handled in a different matter. The key aspect that the decision maker must make is determining what kind of problem it is, which is the most important step because this will make or break an executives decision.

The second step is the definition of the problem. In other words, what kind of problem is being delt with? This would be classified as indentifying the decision criteria in according to the eight step process. This is very important because classifying a problem incorrectly will destroy the executives' decision. An executive must understand where the problem lies and how to directly fix it without interfering with other aspects of the situation. An executive may be able to define a problem but without looking at underlying information it is useless. For example, drinking and driving is a problem. Strictly enforcing laws is great, but not the complete solution. People are still going to drink and drive knowing that they could go to jail. The solution to the problem is not enforcing stricter laws because obviously people still drink and drive, but to enforce a way to allow an automobile to recognize when someone is to drunk to drive. This would completely eliminate the problem.

The third step is clearly defining specifications as to what the decision has to accomplish. A decision must be made by looking at the objective the decision has to reach. If an executive makes a decision without making the boundary conditions clear then he may not be able to notice that things have changed at all. A boundary condition is determining what the conditions the decision must satisfy in order for the decision to be effective. According to Drucker, "a decision that does not satisfy the boundary conditions is worse that one which wrongly defines the problem."

The fourth step is determining what is "right", rather that what is acceptable, in order to meet the boundary conditions. This would be classified as selecting an alternative according to the eight step process. An executive must make a compromise with what is wrong and "right." A decision maker must know that what is accepted may not always solve the problem. If a decision maker worries about what