Develop “reference classes” to help you think through important decisions

The McKinsey Quarterly, 2005, No. 4 at 36 urges decision-makers to build and use “reference classes.” For important law department decisions, likes whether to staff lawyers overseas, create compensation broadbands, decentralize reporting of lawyers, or bid work out on a fixed fee, identify a group of similar decisions at other companies. Isolate the elements of success in those, and compare your situation to theirs.

The use of reference classes is like benchmarking against the gestalt of others’ comparable circumstances.