One morning I woke up early and found L.W. intently studying his iPad. When I asked what he was up to, he explained that he was reading about various fences, fencing materials, and different kinds of trees—how durable or hardy some are, how nicely some of the fencing materials age in the weather, how quickly some kinds of trees grow, what they cost, and the maintenance comparisons. Let’s just say it was much more than I wanted to know so early in the morning.
L.W. had visions of our property being a nature preserve for wild animals, such as deer and turkey. He wanted them to be able to roam freely and did not like the fence that surrounded our property, so he was trying to decide whether to put up a new a fence or to line our driveway with maturing trees.
Normally, I’m the one who wants to know all the details about a decision before I make it. But where the fence was concerned, I thought the best course of action was simply to talk to the people at a local farm store, make a decision, and order what they recommended. We both care about our home and property, but I wasn’t ready to do such extensive research. On the other hand, L.W. wanted to be armed with knowledge before he arrived at the store.
“We know we don’t like the fence we currently have,” I told him. “So let’s just do something by getting rid of that one. Then we can think about what to do next.”
To me, the first decision was clear. Before we could do anything else, we needed to tear down the old fence. In L.W.’s mind, however, the better course of action was to leave up the old fence until we had a solid plan for what to do next—what the new fence would look like and be made of and how we would incorporate trees. He thought that we should at least have some type of fence until the new one was ready to be installed. At the end of the conversation we realized that it was just a fence. We would make the best decision we could, and if we didn’t like it, we could change it.
Within a few months, the old fence came down, and we decided not to replace it. Instead, we planted trees in certain carefully planned places. We love how they look, and we’ve seen an increase in deer going through that area of our pasture. Without a fence, the house and yard look much more open and expansive, which we also love. L.W. did his due diligence on this project, and we couldn’t be happier with the results.
Our lives are filled with the need to make decisions. And unlike our situation with the fence, many of those decisions directly impact other people’s lives and livelihoods.
Good decision-making is one of the strengths I’ve had to work hard to develop. For some decisions I know I need to take my time and do the research. But others need to be made quickly, which is vitally important in a fast-paced business such as racing. And I’m not intimidated by the fact that I might not always get it right. There comes a point in every situation, as with the fence for our house, where it’s best to choose something because it’s the only way to move forward.
I asked Joe Mattes what he thinks about how I have changed as a decision-maker over the years. He said:
When I think about your early years versus now, I would say that in the early years you mainly wanted to get across the finish line. You wanted to fix the problems or answer the questions—whatever the problems and questions were. You were eager to put a matter behind you and move forward. What you learned in those early years was how to assess information quickly, how to get your hands on important facts, and who to seek answers from when you had questions. Now, you’re not as emotional as you once were. You gather facts better. You take time to sleep on a situation. Your ability to live with your decisions and deal with their consequences has changed over time. But one thing has always been true: you’re not afraid to make one!1
I agree with his assessment. I could have thought about things more, asked more questions, or taken more time with certain decisions. Even though I’m wired to move on as soon as possible after making a choice, I’ve learned to be willing to review anything I might see as a bad decision if I think it will move my life or my company forward. Anyone who works with me would say that if I feel a decision has not served JRM well, I’m quick to gather the people who helped make it and the ones most affected by it so we can discuss and learn from it. For me, that’s part of being a responsive leader.
PRINCIPLES OF GREAT DECISION-MAKING
Every decision has a reason behind it, both in business and in life. However, I want to focus in this chapter specifically on decision-making in business. Sometimes the reason for a business decision is purely practical: You want to beat the competition. You want to stay on budget and on schedule. You want to hire the best talent in your industry. You want to invest in the future strength of your company. You want everyone on the team to be more efficient.
While there are all kinds of practical reasons for the choices you make, you can also rely on certain principles to guide you. These principles do not relate to the logistics or particulars of your circumstances; they are ideals that apply to every situation.
Principle #1: Do the Right Thing—Always
My number one consideration when making a decision is a principle my dad taught me: do the right thing. He believed in doing the right thing always, in every situation. Because of that, doing the right thing has been forged into my character for as long as I can remember. I think about it every day, in every decision I make.
The obvious and easy way to determine whether a decision is the right thing is to ask the following questions: Is it legal? Is it ethical? Is it honest? Does it have integrity? If the answer to any of those questions is no, then it’s not the right thing to do. But beyond those basic qualifications for doing right, there are other considerations specific to your personal situation.
For me, doing the right thing when making decisions includes aiming to benefit the greatest number of people in the most significant ways. It also means—even in the cutthroat world of competitive sports—being kindhearted, not mean-spirited. It means making decisions that are not only good for our company but also benefit our sport as a whole. I appreciate the way Joe Mattes describes this:
In the early days of JRM, we gave up real dollars at times in order to do the right thing. When you’re 40 percent of the market, as we are, you have weight and influence in your industry. We do not use that for ourselves; we ask what is best for the industry globally. We have lost money at times because we think that way, but it’s the right thing to do. Kelley and Dale Jr. have such a deep and genuine respect for the heritage of the sport, which came from their dad, that making decisions in the best interest of NASCAR is second nature for them. It’s in their DNA. The decision-making process that Kelley leads at JRM always asks, “What’s the right thing to do for the sport?” She and Dale are number one in that category. Undisputed.2
Honoring my dad’s example of doing the right thing is one of the ways I keep his legacy alive. It has cost us money at times, but I would rather lose a few dollars than compromise our integrity.
A person can always defend doing the right thing. An interviewer once asked me if I run my company according to my own personal values and principles. Of course, I said yes. I can’t imagine doing it any differently. I would think most people run their companies according to their own values; it’s just that some people’s values start and end with deceit and dishonesty. That’s not how I think. I’m committed to honesty and integrity from start to finish, in every aspect of our organization and in everything I do.
To do the right thing means removing one’s own motives and viewing options holistically. I once had a manager who considered only how decisions would affect her personally; whether she supported a decision depended on what it meant for her instead of how it could benefit all employees, the company’s bottom line, and the services we were attempting to provide. Another employee used and abused every privilege available regarding paid time off and other perks. This employee continually manipulated situations and gave excuses for working the system. Both of these people were blinded by selfish motives, so they were unable to see the way their decisions affected others. I do my best to do the right thing, and I expect employees to do the same.
Principle #2: Timing Is Everything
There have been times when I’ve had the feeling of being blocked or hindered in my decision-making. I’ve learned to respect that feeling because, more often than not, I’ve realized later that I felt restrained for a good reason. I couldn’t explain it at the time; it was just an instinct. Eventually I came to trust that this instinct is a valid cause for not moving forward.
If something will not let you move forward, stay still. You may not know why you do not feel free to act, but don’t struggle to figure it out. Trust your gut. Chances are, you will realize later why you didn’t feel free to make the decision or you’ll see the wisdom of not pushing ahead when you did not feel peaceful about it.
It’s important to consider when to act. Taking your time is fine as long as you’re working through the four steps of decision-making outlined later in this chapter. Taking your time doesn’t mean you’re procrastinating or being indecisive; it means that you want to be deliberate and give yourself the opportunity to thoughtfully consider all the relevant factors, especially since due diligence is necessary in most major decisions.
A few years ago, L.W. and I began looking for a house. At times I became impatient and wanted to make a decision quickly. Maybe a given property didn’t check all the boxes, but it checked nine out of ten. But L.W. wanted to wait, and waiting proved to be the right decision. We eventually found exactly what we were looking for, and we were ready to pounce on it when we did. The house has been just right for us, and two years later, I still say to L.W., “This is the most perfect place for our family.” I’m so glad we waited. We had the time, so we made sure to check all ten boxes and eventually found the place we now call home.
Principle #3: Keep First Things First
It’s important to determine the urgency and importance of your decisions. Some become priorities because of time or schedule, while others are priorities because of their value to you or your organization. Time-driven decisions often need to be made quickly in order to keep productivity or momentum from grinding to a halt or to avoid missing out on a particular opportunity. In contrast, values-driven decisions are rarely urgent. Be honest with yourself; if you’re not ready to make that kind of decision, you will not fail to gain because you waited. It’s okay to say, “This is important, so I’m not going to make a decision about it until I truly believe I’m ready.”
FOUR STEPS TO QUALITY DECISIONS
Once you understand the principles of good decision-making, you’ll be ready to put them into practice. I’ve distilled what I’ve learned about how to do this into four steps. These are as applicable to your personal life as they are to your life on the job.
Step #1: Begin at the End
One of the first things I consider when trying to make a quality decision is not the decision itself but my ultimate goal. I look at the big picture and ask myself, What is the end result I want to see here? Then, I make decisions that will move me toward that desired end.
We should always be thinking ahead. If we can view the decisions before us—both the big ones and the small ones—in the context of our long-term strategies instead of seeing them simply as independent choices, we can use them as stepping-stones to reach our goals.
Step #2: Get the Facts
When making a decision, I seek out all the data I can get, along with the pros and cons of every possible option. I want to understand why we might want to go in a certain direction—and why not. In addition, I find out who will be involved, how it will affect them, how we will execute the decision, and other facts relevant to the situation. Essentially, I want to know everything about my various options. I want to understand what is likely to happen if I choose one path over another and what the alternatives may be. When I get as many facts and as much solid information as possible, I feel empowered to make a quality decision.
Step #3: Access the Experts
No one can better assist you in the decision-making process than an expert, someone who has deep experience and years of knowledge in the area pertaining to your decision. Your social circles, professional associations, and networks within your industry may include the experts you need. If not, those groups are certainly good places to ask for recommendations.
One caveat: I have learned that it’s smart to gather multiple thoughts and opinions from experts and then sift through them. Unfortunately, some people may not share the whole truth, particularly if they are competitors in your industry or otherwise don’t have your best interests at heart. Hopefully, you know people well enough to determine if they are honest, but thinking carefully and critically about the information you receive still makes sense.
I mentioned in an earlier chapter that when Dale and I started JRM, I spoke with the most knowledgeable people I knew. Some of those people were other race team owners, so we were all aware that we would compete against each other eventually. Because of my history in the sport, and because of things I’d heard my dad say, I had a good sense of whom I could trust. The experts I confided in were people who respected my dad and who respected Dale and me. Thankfully, they gave us good advice, even though we still wanted to beat each other on the track. But I like to think that they understood, as I do, that we can all help each other in appropriate ways, and that doing so raises the quality of competition, which ultimately benefits everyone involved.
When you are gathering information, it’s important to recognize that everyone’s opinion about a situation is related to their perception of the ultimate goal. Each person’s experience will be different, particularly if the goal is different. Understanding your end goal, thinking through it, and communicating it clearly can make all the difference in terms of the advice you receive and the way you evaluate it.
For example, someone who is known as a “foodie” could tell you that XYZ restaurant is the best in town. But if XYZ is a seafood restaurant and you don’t like fish, it will not be the best restaurant for you. Remember this analogy when accessing experts, and make sure you provide all the information they need to give you insight and information tailored to your specific needs and objectives.
In addition, the Internet makes looking up experts easy. Personally, I trust recommendations from people I know much more than the unknowns of the Internet, but there might be a time when your need for an expert is so specialized that the Internet is a good place to start. To be smart about finding experts online, be sure to look for a good number of verified reviews, not just three or four. The best thing about the Internet is it can help you formulate questions you can then take to experts you know to sift through whether the information online is accurate or not.
Step #4: Talk to the People the Decision Affects
The impact of a decision is rarely limited to the decision-maker; it often has a domino effect. In a professional setting, the decision might affect a department or even an entire organization. Personal decisions can affect friends, spouses, even entire families. Because the consequences of our decisions extend beyond ourselves, discussing them with the people they will affect is both wise and respectful.
You’ll have greater support for the decisions you make if you take time to explain them to those who will be affected by their impact. The better they understand the issues and the more you can walk through any concerns or questions, the more accepting everyone will be.
I think we do this well at JRM. We hold weekly status meetings with multiple departments, which allow people from each area of the company to see the impact of what others are doing. It also gives them a chance to think about how something happening in another department might inspire them to engage their own team. We also have weekly managers’ meetings during which we discuss potential decisions and what they would mean. This enables us to arrive at a perspective based on a team of eight or nine people, not one or two. During these discussions, someone often raises a point that the person who first brought up the issue has not thought about; this helps us work toward a decision. While we move quickly in many ways, I also want to make sure we don’t rush into decisions until we have gained the clarity that can only come from thinking situations through, talking them out, and hearing various perspectives on them.
For example, let’s say we need to make a decision about our company health insurance. This is the kind of issue we would discuss in a managers’ meeting. We may start by stating that we need to trim the bottom line by moving to a different set of parameters for insurance. Then we begin talking about various considerations that should factor into our decision. We would ask, “How do our insurance premiums and the coverage we provide our employees compare to what our competitors offer?” This is an important question to ask from a recruiting and retention standpoint. We would continue asking questions until we arrived at what we considered the best decision.
When I see something that I feel might need to change, I gather the people involved and affected by it to talk it out. Once we understand the ramifications of various options, we move forward. This way of approaching decisions is more time-consuming than simply having me, or a few executives around me, make decisions on our own, but it serves our company well.
DECISIONS, DECISIONS
I have to make some type of significant decision at work every day. I also have decisions to make at home—what to cook for dinner, whether to let my children attend a social event, or when to plan a visit with my college-age daughter who lives out of town. The principles and steps for good decision-making I’ve discussed in this chapter are applicable both in the office and outside it.
Every day, from the time we get up until we go to bed, we make multiple decisions. Some are second nature, and we instinctively know what to do; others require considerable thought and time. In any case, the ability to make smart decisions has a huge impact on being able to achieve our goals, whether we’re seeking professional success or personal achievement.