27 May 2020
Entrepreneurial decisions represent a considerable challenge for decision-makers, especially in times of crisis, due to the exponential increase in the uncertainty of forecasts and time pressure.
We have developed a 3-step model to help you navigate your way through these uncertain times:
The safety threshold for any decision should be what is permissible within the legal framework. Although not equally correct in law, it is a mandatory basic requirement for a decision that is safe from liability. An avoidable violation of mandatory law is the shortest route to personal liability.
It is precisely in times of crisis that the general duties of care of decision-makers are particularly strict. It is only when the formal, competence-related and organisational basic requirements are fulfilled that increased uncertainties open up a wider scope of discretion in favour of the decision-makers.
What we can do for you:
Catalyst for decision-making:
Starting point: As the current example of the corona crisis shows, a general crisis situation forces almost all companies to renegotiate existing contracts.
Challenges: As current examples show, it is not enough to review business decisions to determine whether they are legally permissible. Obligatory decisions must always be made on the basis of adequate information. Regardless of whether this is to unilaterally defer rent payments to contractual partners, to apply for short-time work or to take advantage of government aid, the effects of the decision on other stakeholders - in particular customers, employees, business partners, the public, - must always be considered and included in the decision-making process.
Approach –360°- decision analysis: Analysis of the basis for decision-making that goes beyond purely formal legal considerations and includes other stakeholders and their interests by:
Finally, in the sense of a comprehensive monitoring of the decision-making process, the correct communication of the decision is of central importance. Even a legally and economically impeccable decision can destroy long-standing business relationships, frustrate employees and cause lasting damage to the public reputation of a company if communication fails.
The core element of communication is to take a holistic view of corporate culture, business partner relationships and public perception. Such a consistent appearance creates trust in reliability and values, makes decisions comprehensible and gives them substance.
How we can support you with this:
by multiple authors