Economists refer to a time frame during which some matters can be changed but others cannot as the short run. Short-run decisions usually affect the current situation or the immediate future, in terms of governance this is management of short lifetime content objects. These can be considered disposable. The long run is a period longs enough so that any and everything can be changed. Long-run decisions usually have their impacts only after the passage of some time, and do not affect current operations in any significant sense. Most short-run governance decisions within the business enterprise are to increase or decrease something already being done and thus require marginal comparisons of benefits and costs. Long-run governance decisions usually affect the scale of the enterprise’s operations, and often involve starting something new or stopping some operation currently under way. Given the sharpest possible contrast, short-run governance decisions are “more-or-less,” whereas long-run governance decisions are “go-no go” decisions.
We may distinguish between managerial and entrepreneurial decisions. The SharePoint administrative context involves making relatively low-risk, routine decisions in regard to processes that change in smooth, continuous fashion, about which much can be known or discovered, and to which marginal analysis is applicable. In contrast, the entrepreneurial governance decision is risk-laden because it involves innovative discontinuities in operations, about which little can be known in advance, and to which marginal analysis is less likely to be applicable. As a general rule, short-run decisions are often managerial in nature, whereas long-run decisions tend to be entrepreneurial. Managerial governance decisions are matters of doing more or less of something already in process, whereas entrepreneurial governance decisions involve starting or stopping activities or significantly altering the structure, scope, or pace of extant processes.
This brief survey of the range of settings for managerial decision making and the dimensions of the SharePoint decision problem should convey something of the magnitude of the task before us in identifying the criteria for rational decision making in a variety of contexts. The study of governance economics is, in effect, applied microeconomic analysis. But it is much more than an application of general economic principles. Governance economics brings together economic theory, the methodology of modeling relationships, the statistical process of function specification, and the application of algebra, geometry, and calculus to the decision process.
This series is a lot of parts that I am quasi-using pieces of for a academic research paper stance so bear with me if it gets too esoteric. Or read the other governance articles available within the SharePoint Security category within the main site (available through the parent menu).