Strategic Decision Framework

DECISION FUNDAMENTALS

Decision Classification System

DECISION CLASSIFICATION

CLASSIFY THE DECISION:

TYPE 1 - IRREVERSIBLE:
☐ Major acquisitions
☐ Market exits
☐ Large capital investments
☐ Key executive hires
Process: Full analysis, broad input, CEO decision

TYPE 2 - REVERSIBLE:
☐ Product features
☐ Marketing campaigns
☐ Process changes
☐ Team structure
Process: Faster decision, bias toward action

DECISION CHARACTERISTICS:

Scope:
☐ Company-wide
☐ Department
☐ Team
☐ Project

Reversibility:
☐ Irreversible (one-way door)
☐ Partially reversible
☐ Fully reversible (two-way door)

Urgency:
☐ Immediate (days)
☐ Near-term (weeks)
☐ Normal (months)
☐ Can defer

Stakes:
☐ Existential
☐ Major
☐ Moderate
☐ Minor

DECISION APPROACH:
If Type 1 + High stakes: Full framework
If Type 2 + Lower stakes: Rapid decision

Decision Rights Matrix

DECISION RIGHTS (RACI)

DECISION TYPE: _______________

| Role | R | A | C | I |
|------|---|---|---|---|
| CEO | | | | |
| CFO | | | | |
| CRO | | | | |
| CPO | | | | |
| CTO | | | | |
| Board | | | | |

R = Responsible (does the work)
A = Accountable (final decision)
C = Consulted (input before)
I = Informed (told after)

STANDARD DECISION RIGHTS:

BOARD APPROVAL:
☐ M&A over $___
☐ Funding rounds
☐ Executive compensation
☐ Strategic pivots

CEO DECIDES:
☐ Annual strategy
☐ Executive hiring
☐ Major partnerships
☐ Budget allocation

EXECUTIVE DECIDES:
☐ Department strategy
☐ Team hiring
☐ Vendor selection
☐ Process changes

---

DECISION PROCESS

Strategic Decision Document

STRATEGIC DECISION DOCUMENT

DECISION: _______________
Document #: _______________
Date: _______________
Decision owner: _______________
Decision maker: _______________
Due date: _______________

STAKEHOLDERS:
Consulted: _______________
Informed: _______________

---

1. CONTEXT

CURRENT SITUATION:
_______________

WHY THIS DECISION IS NEEDED:
_______________

IMPACT IF DEFERRED:
_______________

CONSTRAINTS:
☐ Budget: $_______________
☐ Timeline: _______________
☐ Resources: _______________
☐ Technical: _______________
☐ Legal/regulatory: _______________

---

2. OPTIONS ANALYSIS

OPTION A: _______________
Description: _______________
Pros:
  + _______________
  + _______________
Cons:
  - _______________
  - _______________
Cost: $_______________
Risk level: High / Medium / Low

OPTION B: _______________
Description: _______________
Pros:
  + _______________
  + _______________
Cons:
  - _______________
  - _______________
Cost: $_______________
Risk level: High / Medium / Low

OPTION C: _______________
Description: _______________
Pros:
  + _______________
  + _______________
Cons:
  - _______________
  - _______________
Cost: $_______________
Risk level: High / Medium / Low

OPTION D: DO NOTHING
What happens if we don't decide:
_______________

---

3. EVALUATION

CRITERIA SCORING (1-10 scale):

Decision Evaluation Matrix

Criteria	Weight	Option A	Option B	Option C
Strategic alignment	25%	/10	/10	/10
Financial impact	20%	/10	/10	/10
Execution feasibility	20%	/10	/10	/10
Risk level (inverse)	15%	/10	/10	/10
Speed to value	10%	/10	/10	/10
Team alignment	10%	/10	/10	/10
Weighted Total	100%

---

RISK ANALYSIS

Decision Risk Assessment

RISK ASSESSMENT

OPTION: _______________

RISKS IDENTIFIED:

Risk 1: _______________
Probability: High / Medium / Low
Impact: High / Medium / Low
Mitigation: _______________

Risk 2: _______________
Probability: High / Medium / Low
Impact: High / Medium / Low
Mitigation: _______________

Risk 3: _______________
Probability: High / Medium / Low
Impact: High / Medium / Low
Mitigation: _______________

WORST CASE SCENARIO:
If this fails, what happens: _______________
Can we recover: ☐ Yes ☐ No ☐ Partially
Recovery cost: $_______________

BEST CASE SCENARIO:
If this succeeds wildly: _______________
Upside potential: _______________

Pre-Mortem Analysis

PRE-MORTEM EXERCISE

"It's one year from now. We made this decision
and it failed spectacularly. Why did it fail?"

FAILURE SCENARIO:
_______________

WHAT WENT WRONG:
1. _______________
2. _______________
3. _______________

WARNING SIGNS WE MISSED:
☐ _______________
☐ _______________
☐ _______________

PREVENTIVE ACTIONS:
☐ _______________
☐ _______________
☐ _______________

SUCCESS SCENARIO:
"It's one year from now. We made this decision
and it succeeded beyond expectations. Why?"

WHAT WENT RIGHT:
1. _______________
2. _______________
3. _______________

---

DECISION DOCUMENTATION

Decision Record Template

DECISION RECORD

DECISION: _______________
Date decided: _______________
Decision maker: _______________

SELECTED OPTION:
_______________

RATIONALE:
Why we chose this option:
_______________

Why we rejected alternatives:
Option B rejected because: _______________
Option C rejected because: _______________

KEY ASSUMPTIONS:
1. _______________
2. _______________
3. _______________

SUCCESS METRICS:
How we'll know this worked:
☐ _______________
☐ _______________
☐ _______________

REVIEW DATE:
When we'll assess: _______________
Criteria for re-evaluation: _______________

COMMUNICATION PLAN:
Who: _______________
When: _______________
How: _______________

SIGNATURES:
Decision maker: _______________ Date: _____
Stakeholder: _______________ Date: _____

Decision Log

Date	Decision	Owner	Outcome	Learnings

---