'Well, we identified a whole range of options...'
'Was one of them to do nothing?'
'That wasn't an option.'
'Why?'
'Because the business would go belly up....run out of money.'
'So you decided based on some financial criteria?'
'Sort of. We decided which option would make the most money quickest.'
'Make the most money for whom?'
Leaders are increasingly being asked to defend their business decisions by a whole range of interested parties. The media are delighted to cover the post rationalisation of decisions often taken by dominant individuals or groups, based largely on personal preference. The criteria most quoted are financial and often these are presented as the only basis of choice. The commercially expedient option is the obvious winner.
Remember the recent tone of wounded indignation when the 2010 FIFA bid process awarded the World Cup for 2018 and 2022 based on a non-transparent decision making process which appeared to ignore the published criteria.
This week the OPLC will decide on the use of the London 2012 Olympic stadium after the games. Alternative bids have been provided by West Ham United FC and Tottenham Hotpur FC and the media positioning battle has raged over the weekend. Karen Brady, Vice Chairman of the Hammers and Daniel Levy, Chairman of Spurs, have both made strong cases based on different interpretations of the decision criteria. OPLC have published five criteria, some essential and some desirable. Lord Coe has reminded everyone of the promises made by the 2012 Olympic Bid Team and highlighted both the commerical and moral filters which should be applied to the OPLC decision. And the media watches and waits for the decision - due on Friday.
In an increasingly regulated business environment, the process of strategic decision making is under close scrutiny. Transparency, objectivity and fairness must be proved as business leaders grapple with determining which option takes them in the strategic direction they have determined in the way they wish to travel. Long term stability and a moral compass balance short term commercial pressures in the search for effective corporate governance and stewardship.
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