Executive Decision-Making

Question 1

What are the three major impacts to consider when making an executive decision?

1. people, process, and products
2. risks, opportunities, and weaknesses
3. short, medium, and long term
4. strategic, financial, and operational

Answer 1

4. strategic, financial, and operational
   Correct

These considerations balance long and short term, assess operational impacts, and contemplate financial results.

Question 2

During your risk assessment you need to consider competitive impacts and responses.

TRUE

FALSE

Answer 2

TRUE
Correct

Question 3

Your business is going to change. Either you can change it or _____ will change it for you.

1. your board of directors
2. the COO
3. the finance department
4. the market

Answer 3

4. the market
   Correct

The market is a major force that will shape your business every day.

Question 4

When making a decision, you need to make trade offs between risk, reward, and _____.

1. speed
2. regulations
3. incentives
4. strategy

Answer 4

1. speed
   Correct

Judgment is getting the right balance between accuracy and speed. It’s a major consideration in executive decision making.

Question 5

Why must you actively manage change after you make a decision?

1. so people support and execute the decision
2. people can’t manage themselves
3. it’s not necessary to manage change
4. to improve morale

Answer 5

1. so people support and execute the decision
   Correct

Just because a decision is made doesn’t mean it’s executed. You have to help people work through the change.

Question 6

Where should you get data to support your decision?

1. from internal sources only
2. from both internal and external sources
3. from customers only
4. from external sources only

Answer 6

2. from both internal and external sources
   Correct

Consider a broad set of data sources when making your executive decisions.

Question 7

Which of these is NOT a common analytical tool used in executive decision making?

1. game theory models
2. forecasting models
3. statistical analysis
4. role play analysis

Answer 7

4. role play analysis
   Correct

Role playing is a common training and development approach, not an analytical tool.

Question 8

Why should you disseminate your decision making rationale broadly?

1. so people don’t play “telephone” and get incorrect information
2. to cover yourself in case the decision goes poorly
3. to send a strong message to your competitors
4. so other people perceive how effective you are at decision making

Answer 8

1. so people don’t play “telephone” and get incorrect information
   Correct

When information gets passed along verbally, people can change or leave out important facts.

Question 9

When selecting metrics to track your decision, how many metrics should you measure?

1. as many as possible
2. 5
3. as few as you can get away with
4. a manageable set of ones that can change the answer

Answer 9

4. a manageable set of ones that can change the answer
   Correct

Only measure key metrics that will let you know if you need to adjust your decision.

Question 10

When dealing with different cultures, what style of decision making should you choose?

1. one that is appropriate for that culture
2. the style that gets to the fastest decision
3. the style you’re most comfortable with
4. the dominant style for the corporate culture

Answer 10

1. one that is appropriate for that culture
   Correct

Consider different cultures and their decision making styles. Choose one that will be acceptable for that culture.

Question 11

As long as you complete the acquisition, it can be considered to be a successful decision to buy that company.

TRUE

FALSE

Answer 11

FALSE
Correct

Question 12

What do you have to accept when making executive decisions?

1. that you won’t always make the right call
2. that you really don’t have true decision making rights
3. that your boss will frequently disagree with your decision
4. that you will often get negative reviews due to your decisions

Answer 12

1. that you won’t always make the right call
   Correct

There will be decisions you make that turn out to be incorrect. That’s due to the complexity of these decisions.

Question 13

Why should you declare success publicly when you’ve made a good decision?

Select an answer:
1. to show everyone that you were right all along
2. so you get credit for your hard work
3. to build support for future decisions
4. to silence your critics

Answer 13

3. to build support for future decisions

Question 14

What is a major reason you may be using incorrect data?

Select an answer:
1. underlying biases in how the data was collected
2. your team isn’t very analytical
3. you don’t fully understand the problem you’re solving
4. good data is expensive

Answer 14

1. underlying biases in how the data was collected

Question 15

When should you communicate the rationale behind your decision?

Select an answer:
1. never
2. when it’s clear it was a good decision
3. when someone asks why you made the decision
4. as soon as you make the decision

Answer 15

4. as soon as you make the decision

Question 16

If someone makes a bad decision, what should you do?

Select an answer:
1. hold them accountable and have it impact their incentives
2. point out the good parts of the decision to make them look good
3. don’t say anything because they might quit
4. invest more in fixing the decision after the fact

Answer 16

1. hold them accountable and have it impact their incentives

Question 17

What’s a good way to build trust?

Select an answer:
1. Hide bad decisions so people think you only make good calls.
2. Point out that you’re their boss so they have to trust you.
3. Tell people stories describing how trustworthy you are.
4. Be transparent about your decision making.

Answer 17

4. Be transparent about your decision making.

Question 18

Which of these choices is a decision-making style?

Select an answer:
1. hypothetical
2. game theory
3. rapid
4. participatory

Answer 18

4. participatory

Question 19

What is a major factor that determines the decision you make?

Select an answer:
1. the risk and reward profile of the decision
2. how big your bonus will be if you make a good decision
3. whether or not people will like you after the decision
4. how many people on your team will need to be laid off

Answer 19

1. the risk and reward profile of the decision

Question 20

Executive decision making is complex because of the scope, duration, and _____ involved in such decisions.

Select an answer:
1. money
2. speed
3. reputation
4. risk

Answer 20

4. risk

Question 21

When performing scenario planning, what kind of event should you consider?

Select an answer:
1. market changes
2. regulatory changes
3. competitor reactions
4. all of these answers

Answer 21

4. all of these answers