“…the most common source of mistakes in management decisions is the emphasis on finding the right answer rather than the right question.”
Drucker’s business and management publications contain timeless truths. His writings are based on what philosopher Peter Kreeft called “three ways of knowing–experience, reason, and authority…” and thus often contrary to common thought. For example, Drucker believed that a big problem cannot be solved by problem-solving. Instead, a big problem requires a strategic decision and strategic decisions require something akin to a scientific method.
His method for strategic decision-making goes like this. First, the problem should be defined. This requires identifying the cause of the problem or the critical issue that is causing it. Second, the cause of the problem needs to be analyzed. Managers need to make sure they have the right information for the analysis. Third, managers need people and tools to come up with solutions. Drucker warned against either-or dichotomies. Several potential solutions should be sought to encourage careful thinking. Fourth, the manager must pick the best solution. Drucker provides four criteria for this decision. Finally, the decision is carried out and accomplished.
This chapter is worth reading more than once. The information is applicable to business and life decisions.
(The Practice of Management, chapter 28)