[This post was originally published September 11, 2017, on LinkedIn by Jeff Holman.]
Different people and situations call for different decisions. And every decision opportunity is characterized by its context–trivial or critical, simple or complex, personal or group consensus. However, every team needs a guiding decision framework as a starting point.
The illustrated framework outlines four ‘lenses’ to consider for each decision.
- At the level of business finances and modeling, a strategic lens considers value to the business. This is usually where the conversation begins, because someone in a business is motivated to take an action that they believe adds value to the organization.
- A legal lens considers whether a decision complies with applicable laws and regulations. Typically, rudimentary and common actions only require competent legal acumen, whereas more creative or complex actions benefit from commensurate legal review.
- An ethical lens relates decisions to the appropriate community rules, which might exceed, or sometimes even conflict with, applicable legal constraints. Also, consider that some of your business partners or advisors, like lawyers and doctors, are subject to their own rules of ethics.
- Finally, a moral lens, or personal values and principles, might come into play for certain decisions. This is often the distinguishing feature of organizations we often refer to as “socially responsible” or “sustainable” businesses, but not all business decisions require significant moral consideration.
When you find yourself deciding to move forward without using one of these lenses, try to make sure you understand the types of risk you might be exposed to. Under certain circumstances, some of those risks will be acceptable and others will not. This is where business judgment and accountability dominate.
What framework do you use in your business decisions?
Jeff Holman draws from a broad background that spans law, engineering, and business. He is driven to deploy strategic business initiatives that create enterprise value and establish operational efficiencies. Mr. Holman earned his Bachelor of Science in Electrical Engineering and Juris Doctor (JD) from the University of Utah and a Master in Business Administration (MBA) from Brigham Young University. He has practiced patent and intellectual property law in Silicon Valley, built and managed a law firm focused on IP transactions, helped “Shark Tank” inventors with legal and business strategy, and served as general counsel for the leading innovator for consumer electronics waterproofing technology–where he managed engagements with two Fortune 10 customers, provided key legal oversight related to $170 million in equity and debt funding, and oversees global IP strategy. Additionally, Mr. Holman is working with a development team at Intellectual Strategies to launch the first SAAS platform dedicated to IP strategy.