Decision-making in business vs. politics: How it’s different
The recent presidential election was seemingly decided on the premise that a business career is the ideal preparation for decision-making in politics, but the types of acumen needed to exist in the political and corporate worlds are actually quite different. Fast Company recently broke down the ways in which the public and private sectors are unique. (Jan. 13, Weissman)
It’s the difficulty of analysis that makes politics a different game from business. Carnegie Mellon Institute for Politics and Strategy Professor Baruch Fischhoff explained that the many ways to measure probable outcomes in business, such as projected financial outcomes or partnerships, don’t have easy analogs in the realm of diplomacy.
Despite the fact that businesses today have operations around the world and work with huge networks of other organizations, the web of interconnected consequences of their decisions is far more immediate than the equivalent in politics.
Decision-makers within companies today likely experience a small echo of the shift from business to politics every time they are promoted up a level in their organizations, Fischoff explained. As they change roles and grow in their responsibilities, they will find themselves having greater effects and needing to monitor more inputs. The jump from head of a company into the political realm is the last and largest gulf to cross.
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