Stay SaaSy: You Know What To Do

In startups and large companies alike, smart people with context usually know the right course of action in tough situations. Despite obsession with strategy and data, operational decisions often feel obvious to those close to the problem.

People tend to avoid difficult decisions, creating painful coping mechanisms that increase overall harm. Facing reality early, like firing an underperforming exec or cutting a failing product, prevents prolonged issues and wasted resources.

Key business dilemmas often have clear answers: 1) Firing an exec? If you’re unsure, the answer is usually no. 2) Layoffs? Your gut often knows if it’s necessary. 3) Cutting products? Mediocre products rarely survive in competitive markets.

4. Selling the business? If growth stalls or decline is evident, selling is often the right move. Exceptional acquisition offers stand out clearly, like multiples far above market norms. 5) Shutting down? The emotional cues from leaders often reveal the right decision.

When torn between options, the choice that causes discomfort is usually correct. Humans avoid hard decisions, so hesitation signals the right path. Watch for excuses using 'just'—these often mask avoidance rather than justification.

Teams must welcome tough feedback, especially from those with direct expertise rather than relying on hierarchy. Popular but ineffective executives can persist if senior staff avoid uncomfortable conversations, harming the organization.

The data-driven mindset, while valuable, can mislead by overemphasizing nuance and certainty. Most business problems are straightforward: failing lines show no signs of life, and poor executives fail across multiple areas simultaneously.

Speed matters more than endless data analysis. If you have enough information to be confident, act swiftly. Experienced leaders should resist the temptation to delay decisions seeking more data when the answer is clear.

External advisors can validate what teams already sense and help assess the severity of issues. A simple method is 'rubber ducking'—explaining a tough decision to a trusted friend who asks clarifying questions until the right choice emerges.

Leaders owe their teams decisive action. Fear of blame causes paralysis, but teams respect leaders who make tough calls based on sound judgment. Successful companies operate as benevolent dictatorships, valuing clear decisions over endless debate.