The novice in finance and business initially believes that market forces tell the practitioner what to do, and that the tools of business analysis taught in MBA programs will model what the market commands. The experienced practitioner knows that the range of discretion of the decision-maker is considerably broader than this economic view of the world allows. Analysis devoid of values invites disaster. The following five questions can help direct the decision-maker toward results consistent with his or her values. Anyone who makes decisions without regard for the longer-term consequences will eventually ruin his career and the careers of those around him or her.
Moral relativism is a poor foundation for managerial decision-making.
It is nearly impossible to specify in a contract the behavior necessary to produce good results afterward. A great deal in business relies on trust. It makes sense to reflect on whether the partners in a business decision merit your trust. To ask the question seems quaint today, but can save great pain later. In his famous testimony before the U.S. Congress, the financier J.P.Morgan was cross examined on his criteria for lending money.