Business decision making

The ability to make better decisions is a vital part to operating a business

Here’s a six-step guide.

Number one

Identify what the decision is.

Being clear about the issue is critical. 

  • I need to be able to _________
  • I want to achieve __________
  • By doing _________ I can do _________

Number two

Gathering as much information as possible. 

Having the data to review will help compare against alternatives. 

  • Financial info. 
  • Operational info.
  • Market info
  • Economic info. 
  • People involved 
  • Communication 

Number three 

Identify alternatives. 

Is there an alternative option? Can the outcome be achieved doing something differently? 

Ask yourself

  • What happens is we do nothing? 
  • What is the worst-case scenario? 
  • How would the right decision feel?
  • If we make the correct decision, how will the result look?  
  • What are the Pros & Cons of each? 
  • Have me the resources to pursue more than one decision? 

Number four 

Review the information. 

Look for information that goes against your decision rather than looking to info which is confirming. 

It is essential to look at the decision from different points of view, rather than discarding information which does not fit in. 

Use a team (family/friends/colleagues) to give feedback. 

Try and remove your emotion. Making decisions when you’re emotionally involved can impede your judgement. 

Number five 

Take Action

Charles Darwin. “It is not the strongest or the most intelligent who will survive but those who can best manage change.”

Take action and own the decision. You can always change it. 

Number six 

Review. 

Making better decision making will come from reviewing past decisions looking to see what went well, but more importantly, what didn’t. 

Plug this gap through additional information or add people with different points of view which will lead to better decisions in the future.

Book a call so I can understand what decisions you are considering, I can give you a clear plan on how to address them.

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