There are many different processes and theories managers use when approaching decisions. However, these processes don’t always provide a clear answer when there is a degree of uncertainty, especially in a crisis situation.
Johnson & Johnson is known for being great at crisis management. Attached is an article outlining how J&J handled a crisis situation in 2009, which was full of uncertainty. https://www.wsj.com/articles/SB124709897531615407
The following list outlines the different approaches you can take while making decisions under uncertain circumstances.
- Maxmin – Choose the alternative that is the “best of the worst”
- Maximax – Choose the alternative that is the “best of the best”
- Laplace – Choose the alternative with the best weighted payoff
- Minimax Regret – Choose the alternative with the best “worst regret”
How do you think managers and company’s should respond to uncertainty and crisis management. How do you think J&J handled this crisis? What would you have done differently as a manager?