We judge leaders by how well they make big, strategic decisions. But corporate success also depends on how well rank-and-file employees make thousands of small decisions. Do I give this client a special price? How do I handle this customer’s complaint? Should I offer a seat upgrade to this passenger? By themselves, such daily calls—increasingly made with the help of enterprise decision-management technology—have little impact on business performance. Taken together, they influence everything from profitability to reputation.

A version of this article appeared in the June 2005 issue of Harvard Business Review.