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McKinsey Global Survey Results

McKinsey Global Survey Results:

How companies make good decisions

How companies make good decisions
Companies get a lot of advice about how to make good decisions. Which decision-making disciplines really make a difference? Do strong decision-making processes lead to good decisions? This McKinsey survey highlights several process steps that are strongly associated with good financial and operational outcomes. In the survey, we asked executives from around the world about a specific capital or human-resources decision their companies made in the course of normal business. We learned who was involved, what drove the decisions, how deep the analysis was, how unfettered the discussions, and how and where politics were involved. Respondents also described the financial and operational outcomes of the decisions.1 The results highlight the hard business benefits—such as increased profits and rapid implementation—of several decision-making disciplines. These disciplines include ensuring that people with the right skills and experience are included in decision making, making decisions based on transparent criteria and a robust fact base, and ensuring that the person who will be responsible for implementing a decision is involved in making that decision. Finally, although corporate politics sometimes seems to undermine strong decision making, some types of consensus-building and alliances apparently can help create good outcomes.
1 The survey was in the field in November 2008 and received responses from 2,327 executives from the full range of industries,

regions, and functions.

Jean-François Martin

Dec 2008 McKinsey Quarterly survey on corporate decisions

2

McKinsey Global Survey Results

How companies make good decisions

Describing the decisions

The survey covered the gamut of typical corporate decisions,

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