Types of Decision Makers
What type of decision-maker relies on intuition and feelings?
Gut-feeling decision-maker
When Airbnb launched, it found an unaddressed market gap. What need did Airbnb identify in the market that was not being fulfilled?
Are there unaddressed PNDs (Pain/Need/Desire) for clearly identified customers?
In 1975, Wozniak and Jobs created their first computer in a garage. What famous tech company did they start based on a feeling that personal computers would change the world?
Apple
When Uber was developing its ride-sharing app, the company needed to ensure that the technology could handle the high volume of users and transactions. What crucial step did Uber take to ensure the app’s feasibility?
"Is the team capable and motivated enough to successfully deliver the Definition of Success?"
When a professional soccer team considers signing a high-profile player, one key factor is whether they can realistically acquire the necessary funds for the transfer fee. What must the team evaluate before making the signing?
Can the necessary resources realistically be obtained?
Which decision-makers prefer to make decisions based on evidence and facts?
Rational decision-maker
Airbnb proposed a unique platform where people could rent their spare rooms. How did Airbnb's solution align with its overall corporate strategy and address market demand?
Is the proposed solution compelling and supporting corporate strategy?
When Jeff Bezos founded Amazon in 1994, he initially focused on selling books. His decision to expand into a wide variety of products was based on extensive data analysis and market trends. What is this type of decision-making called?
Rational decision-making
Uber has faced various regulatory and legal risks as it expanded into new markets. How did Uber approach these risks to ensure it could continue operating effectively?
"Are the risks and other factors manageable?"
When Netflix was launching its streaming service, they had to decide whether it was worth the investment to shift from DVD rentals. What decision did they face regarding the potential risks and rewards of moving into streaming?
Is it worth it and/or will it hurt if this project is not implemented?
What approach do decision-makers who combine intuition and facts use?
Mixed approach
Airbnb offered something different compared to hotels. What was its competitive advantage over traditional lodging options?
Are the competitive advantages strong enough?
Elon Musk often combines intuition and evidence when making decisions for Tesla. For example, he pushed for the development of the electric car market, despite financial risks, because he believed in the future of sustainable energy.
Mixed decision-making
As Uber scaled its operations, it needed to invest in infrastructure and support systems. What did Uber need to determine to ensure it could sustain its growth?
Can the necessary resources realistically be obtained?
When Christopher Nolan directed Inception, the project involved complex visual effects and an intricate storyline. Before moving forward, how did the production team evaluate the feasibility of completing such a challenging movie?
"Is the team capable and motivated enough to successfully deliver the Definition of Success?"
Which type of decision-maker might skip reviewing a business plan?
Gut-feeling decision-maker
Airbnb's success relies heavily on keeping various stakeholders happy, such as hosts, guests, and regulators. Did Airbnb manage to address the concerns of its stakeholders?
Will it make the key stakeholders happy?
In 1994, Howard Schultz, the CEO of Starbucks, made an emotional decision to purchase the company after being inspired by Italian coffee culture, despite skepticism from others. Which type of decision-making did this exemplify?
Gut-feeling decision-making
To maintain its market position, Uber needs to keep drivers, riders, and investors satisfied. How did Uber ensure that its platform met the needs of these diverse stakeholders?
Will it make the key stakeholders happy?
When the Red Cross launches a new disaster relief initiative, they need to assess the level of uncertainty in achieving their mission, especially in unknown conditions. How do they evaluate whether they should move forward despite these uncertainties?
Is the level of uncertainty generated by unknowns acceptable?
What type of decision-maker hates uncertainty the most?
Rational decision-maker
Managing legal and trust issues was critical to Airbnb’s growth. How did Airbnb manage the risks involved in its platform?
Are the risks and other factors manageable?
During the financial crisis of 2008, the U.S. Federal Reserve made several decisions to bail out banks based on detailed financial models and economic projections. This approach to decision-making is best described as?
Rational decision-making
When considering new market expansions or technological innovations, Uber must evaluate whether the investment is worthwhile. What critical question does Uber need to answer before proceeding with such investments?
Is it worth it and/or will it hurt if this project is not implemented?
Before moving forward with a new product launch, a tech startup needs to assess whether the action plan they've developed can realistically deliver the defined success or at least avoid failure. What crucial step must they take before going to market?
"Can the action plan realistically deliver the definition of success or at least the definition of failure?"