Executive Summary

We often hear people say "We have to take a decision" or "We are unable to take a decision". What is a "Decision"? Why decision is to be taken? What are the consequences of not taking a decision in time? How a decision is taken? What are the inputs for taking a decision? These questions do beg for an answer.

The word "Decision" is defined in many ways. One of such definitions is "the act or need for making up of one's mind". It is a mental process leading to some conclusion. This conclusion then leads to action or a set of actions. Decision making is an important requirement in any aspect of life. We are making several decisions everyday in our personal lives. Some are of not much impact on the future happenings. Some others may change the course of lives and communities. It is so even in organizations. There are defined processes in today's institutions and business enterprises for arriving at decisions. It is even said that "Not taking a decision is also a decision"!

Let us examine an example to understand the process of decision making. A loan application is received in a bank branch. This is the first set of papers that starts a file. As the application is processed at different levels in the bank, papers pile on the application. The size of the file grows. There is bio-data or information about the promoters. There can be information about the allied firms or group companies. There can be a bulky DPR (detailed project report) prepared by an expert. There would be an analysis of the DPR by another independent expert. A techno-economic feasibility study report would join these later on. Then there would be financial statements and their analysis reports. The file would arrive at the next level with a full-fledged proposal for sanction of credit facilities with the recommendations of the branch manager. Experienced experts would further add value to the file by adding some more papers. Clarifications may be called for and in reply some more papers would be added to the file. The proposal finally arrives at Head Office. Here we have some more super experts who dissect the entire file and come up with their own report and recommendations. The collective wisdom or foolishness of all these experts, super experts and ultra-experts has produced a big file with voluminous data and multiple analysis. The file is now sitting on the table of the big boss, who is the sanctioning authority. 

In respect of high value proposals, the file has one more hurdle before reaching the big boss. There would be a committee of experts to discuss and deliberate on the proposal. It has names such as "Executive Committee" or "Credit Committee" or "Committee of Experts" or some other similar fancy name. This committee vets the entire file (or it is so believed) and the big boss has one more set of papers for his perusal. Now a decision has to be taken unless the promoters have found someone else who has already sanctioned the loan or have abandoned the project by now. The ultimate result may be a simple two line letter stating that the proposal stands rejected (the second line may have been added as one line alone may appear to be curt or unprofessional) or it may be a sanction followed by a long list of terms and conditions. Of course, there would be another set of experts who analyze these terms and conditions in greater detail and come up with fully acceptable arguments as to why these conditions should not have been there in the first place. That is for another future day.

The bog boss has a tough task on his hands now. He has a voluminous file (or it could be a set of files) before him to take a decision. The issue is not different even in a computerized atmosphere. There are many files in soft form here even though the task itself is indeed hard. There are many similar sets of files before him and they all call for a decision expeditiously. How can he read and understand all this information and decide in a short time? There is no hard rule that a decision is to be taken after understanding the issues. But still the belief is that the issues are read and understood. Therefore there is a need for a tool to place on record that the sanctioning authority has indeed applied his mind on the issues involved. There is great deal of comfort in such understanding for all concerned, except those who are disappointed with the final decision. 

Hierarchies have invented a wonderful tool to answer this challenging issue. It is called an "Executive Summary".  An "Executive Summary" or "Management Summary" is a short document that summarizes a long report or proposal or file or set of files in such a way that the reader can understand the whole issue rapidly and become an expert instantly. This enables the user of the executive summary to grasp the entire gamut of underlying issues and come up with a quick decision. The executive summary has rendered decision making fast, easy and painless process, though preparing an executive summary itself may be a very painful process for those preparing it.

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A senior bank executive was fed up with his high voltage banking activities day after day and desired a change from the monotonous routine. He decided to take up study of literature as a diversion measure and recoup his energies before resuming the banking activities once again. He took a month's leave and went to a library to start his literary pursuits. (He was surprised to find that a month long leave was sanctioned to him and wondered how the organization would work without him for that long. But others in the bank knew that his presence or absence did not really matter). He was astounded at the volumes of books everywhere and did not know where to start his mission. It also dawned on him that there was no way he could finish even a small part of his new found hobby in the one month period. He checked on the authors of the books on "GOOGLE" and found that sage "Veda Vyasa" was one of the oldest and biggest authors of all times. He sought an appointment with Veda Vyasa which was duly granted. He met the great sage on the appointed day at the Badarinath abode of the sage in Upper Himalayas. The conversation went on something like this:

"OH mighty sage! Thank you for granting me this appointment and more than that sticking to it without excuses to avoid it. I want to study literature but do not know where to start. As you are considered first among the authors, I thought I should consult you to find a solution to my problem" (The executive should have used the word "see" instead of "Consult". Fortunately, no consultancy charges were levied as the sage did not find any use for money and did not even have a Jan Dhan Zero Balance Account as no banker went to that cold place to open his account. The sage would have found it impossible to produce the required photo identity and address proof. He has no AADHAAR as well).

"Young executive, How can I help you?" (Though the executive was old and on the verge of retirement, he was young for the old sage whose real age is not known to us....)

"I am used to reading "Executive Summary" on files and understand the contents"

"I know that. What can I do for you?"

"Can you prepare and give me an executive summary of all your literary works? That helps me to save time and understand your literary productions"

"Dear young man, you indeed appear to be hard-pressed for time. What should be the size of the summary you desire?"

"Can it be in six or eight pages? If you can make it in four, it is even better"

"Do you want an executive summary only for my works or for the entire literature in the universe produced from eternity till now?"

"That is a perfect solution to my problem, but make it as brief as possible"

Sage Veda Vyasa smiled. "I do not need even four pages and I do not need time to prepare it. I will give you an executive summary of all the literature in this world in half a verse (Half stanza). In fact I have given it long long ago. For your benefit, I will repeat it now. Listen carefully"

श्लोकार्धेन प्रवक्ष्यामि यदुक्तं ग्रन्थ कोटिभिः |

परोपकारं पुण्याय पापाय परपीडनम् ||

Slokardhena pravakshyami yaduktam granthakotibihi

paropakaaram punyaya papaya parapeedanam

I am summarizing all that is said (written) in the millions of books in half a line. Whatever is done for the benefit of others is Punya (Good deed). Whatever done that harms others is Paapa (Sin).

*****

Executive Summary is not a product of modren management schools. We can find its origin as well in Sage Veda Vyasa!