Whether you operate a small business or a large one, decision-making is a significant part of your job. As a leader of a department or company, many vital decisions will fall on your shoulders. As a result, the choices you make can have long-lasting impacts on your venture.
You want, therefore, to find ways to improve your processes, so you’re more likely to make smart, strategic decisions that help move your organization forward. There is no single right way to go about this and no guarantee that even good decisions will have favorable outcomes. However, there are things you can do to boost your likely results in 2021 and beyond.
Identify the Decisions You Must Make
The first step is to identify the decisions you must make. Effective decision-making comes down to knowing how to decide which factors to put first. Write a list of the top ten or so decisions needed to be made in the short term and rank them in order of importance. Prioritize what you focus on so the decisions that can have the most impact for your business do not get left until the last minute and receive too little attention.
Know Your Goals
Equally vital is knowing the company goals that are top of mind right now, whether they’re financially specific ones or to do with your team, wares, operational processes, long-term direction, marketing strategy, etc. If there are many stakeholders in your organization, you might discover some misalignment in goals.
Talk to your partners and other key contacts to determine the truly critical outcomes you are trying to achieve. Stay anchored to these things as you make decisions. That way, you will assess ideas and solutions with more of a keen, targeted eye.
Look at Problems from All Angles
Keep in mind that making good decisions requires you to step back and think about problems in the fullest context possible. Often, to move forward, we need to take a few steps backward to see a bigger, clearer picture. Reframe decisions by understanding as many perspectives as possible and looking at likely outcomes in the near future and longer-term. This kind of mental work is valuable because it reduces the risk that you will emphasize one top-of-mind aspect when making decisions while neglecting other, just as vital, factors.
Gather Necessary Information
Before you make decisions, gather all the necessary information required to choose a course of action. You do not want to rely solely on gut instinct or emotions. Due diligence by way of gathering facts leads to evidence-based management that is less likely to be swayed by your personal experiences and biases.
While listening to your instincts is helpful, you also need to remember that the knowledge and skills you have used in other circumstances, and outcomes you’ve achieved in the past, may not apply to the current situation. As such, gather current, complete performance data that relates to the topic at hand.
It helps to use tech tools to obtain real-time details and predictions. Software programs can manage and analyze information and run reports for you, saving you time and helping you to be more accurate in your decision-making. No matter your business type, there should be data to examine for insights. For example, if you are a retailer, use inventory management software and comprehensive strategic sourcing tech to obtain supplier insights and potential scenario analysis. Once you have a clear picture in your mind of all the relevant data, you should find it easier to see a way forward.
Get Input from Others
Another tip is not to try to make decisions all by yourself. While you ultimately need to make the final choice, it is wise to get outside perspectives, too. Be open-minded and see if other people, such as employees, advisors, mentors, and partners, can provide you with a wider range of views. These may alert you to factors you would not consider alone. Try to ask at least two to four people for their input but select those with more experience or subject-matter expertise than you when possible.
Once you have done the above steps, evaluate your options and face realities. There may not be any perfect choices, therefore finding ways to mitigate risks is a must. Also, consider common fallacies you could be making, such as confirmation bias. This term refers to seeking out or interpreting evidence as confirmation of your already-established beliefs or theories.
Finally, when the dust has settled, analyze the outcomes of all your key decisions so you can learn from them. This reflection will aid you in making better selections next time. The more you follow these steps over and over again, the easier they will become.
