Does Speed Kill? The Choice Between Making Fast Business Decisions versus Deciding More Slowly

The business world often expects us to decide and act fast. Yet, books describing newer research challenge the effectiveness of speedy decisions and actions. So, there seems to be a conflict. Does the newer research actually imply that fast paced executives should slow down and become more deliberate in their thinking?

Executives who decide fast are valued. Their quick decisions reflect a bias for action, which is common in business. For example, Meg Whitman, CEO of Hewlett Packard and former CEO of eBay, describes the importance of bias for action in her book, The Power of Many. Additionally, the best-selling book Blink by Malcom Gladwell makes a case for deciding fast. And, at a conference, Google CEO Larry Page said, “There are only companies that have good fast decisions. There are no companies that have good slow decisions.”

But, more recent information warns us not to decide too fast. For example, the book Thinking Fast and Slow by Daniel Kahneman distinguishes between system one (fast) versus system two (slow, deliberating) thinking, and points out that system one decisions are often wrong. Also relatively recently, the research described in Jim Collins’ newest best-selling book Great by Choice found that deciding and acting fast can kill a business.

On the other hand, not everyone agrees with the newer, go slower research. There are on-line posts that disagree with what Jim Collins’ Great by Choice says about the danger of deciding and acting fast. These posts might, for example, dispute Collins by citing Google CEO Larry Page’s comments about fast decisions, or might describe a poster’s own business experiences.

So…What does it all mean? Should business decisions be fast or slow?

Why Opposing Viewpoints Do Not Necessarily Conflict
To answer the fast versus slow question, we must delve deeper and take a closer look at the reasons behind what each side says. When looked at in context, we see that the two opposing viewpoints do not necessarily conflict since whether to go fast or slow depends upon the situation.

My 25+ years researching business success and failure patterns sheds insights into this. My research finds that businesses succeed when they build upon strengths, knowledge and expertise. Nasty debacles often result from moving at high speed into areas where the business lacks the strengths and know how to succeed. So, if the business does not yet have required know how, deciding and acting fast can be a killer. That’s why businesses that move too fast into new areas (e.g., new markets, new products, new lines of business) or that make major changes fast can be quite vulnerable to the dangers of speed, especially if the stakes are high. In situations like these, where the business may be venturing out of its element without the needed know how, fast decisions can do great damage.

But, much in business is relatively routine and backed by know-how. For these matters, fast decisions typically do not kill the business. In fact, for those routine matters, fast decisions can actually be beneficial since they keep things moving along in a timely manner. To keep things moving, and since too slow can also be a problem (even for some non-routine matters), executives who decide fast are valued and we see on-line posts that dispute the speed kills research finding. Furthermore, Google, and years earlier Wal-Mart, are examples of the specific kinds of situations where moving fast can be highly successful.

The book Thinking Fast and Slow appears to agree with my findings about when to decide fast. The book says fast intuitive decisions are often wrong when made in an irregular (i.e., non-routine) environment or when you have not yet learned the regularities. The book also tells how beneficial fast decisions are for something routine or essentially automatic, like walking or breathing. We wouldn’t want to slowly deliberate about how to take each step when we walk. And, our bodies have the know-how to let that happen fast.

Jim Collins’ Fast Can Kill Finding in Context
Based upon all this, Jim Collins’ fast can kill companies finding needs to be looked at in context. Jim Collins’ Great by Choice research that produced his fast can kill finding compared highly successful companies with their unsuccessful counterparts during uncertain times. In such times, companies may face pressure to make major changes. And, according to my research, serious failures–the kind that can kill the business–often occur when companies make major changes about which they lack know how, and when companies go into new areas they don’t understand. These can easily happen during uncertain times.

So, successful companies take steps to make sure they have the needed know how. This doesn’t mean going excessively slow, nor does it necessarily mean agonizing over every little decision. And, it doesn’t mean fast paced executives whose style is “driver” should start pondering every single decision in an “analytical” style that typifies many research scientists and academics.

But, it does mean that fast paced executives should avoid moving full speed ahead into areas the business does not understand. Doing so can greatly harm a business, according to my research. My research finds that business success generally comes from a gradual, evolutionary approach. So, there is value in testing, experimenting, paying attention to data and patterns, watching what works and what doesn’t, and making small bets. Thus, as I see it, the more crucial lesson from Collins’ findings should be: strive to determine which decisions can be fast versus which ones should be slow.

Google CEO Larry Page’s Fast Decisions Comment in Context
Furthermore, Google CEO Larry Page’s comments about fast decisions must be put in context. His comments were made at a Zeitgeist conference where both Larry Page and Google Chairman Eric Schmidt jointly addressed the audience. During that session, we were told that Google values analytics in its decision making. Since analytics are a tool to help make better decisions, Google’s belief in analytics tells us something. It suggests a willingness to make tradeoffs between speed and getting things right, although Google strives for both.

Thus, since Google emphasizes analytics, despite what Page said about fast decisions, the message emanating from that conference is: decide fast, but not so fast that you proceed blindly. This philosophy can help protect Google from the dangers of deciding too fast–dangers that showed up in Jim Collins’ Great by Choice research, as well as in my research.

In summary, a business must adjust its mix of fast versus slow so its moves are based on its strengths, knowledge, and expertise. This means fast paced executives must slow down and become more deliberate in their decisions when moving into new areas where the company has little know how, or when making major changes. In these situations, speed can kill. Yet, fast can be beneficial in certain cases, particularly for more routine matters. So, pay attention to when to decide fast and when to decide slow. And, you’ll improve the quality of your decisions, so you can make those Winning Moves.

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