Decision making in business is all about being logical and factual as well as systematic in formulating decisions. There are several factors affecting business decisions such as the political and economic climate, the current state of the company, and many other things. Nonetheless, the key to effective decision making in business involves a rather simple but very logical series of steps of carrying out the task. At The Startup Expert ® we recommend these tips:
Know the Criteria for Making a Particular Decision
You cannot come to decision unless you know what it is for. Before you can ever delve into the suggestions for the decision, know first your purpose in making this particular decision. Are you aiming for a quarterly increase in sales? Is it to minimize operating expenses? Is it to increase customer loyalty or to enhance employee commitment? If you fail to make the criteria clear before you make a decision, chances are you would not be able to determine whether the outcome of your decision would be a success or a failure.
Rely on Facts
Effective business decision making involves the use of facts. The goal is actually not to have all the facts but rather to gather all the necessary facts in order to fully understand the current situation. This will be essential for developing alternatives and for making good choices later on. If you do not know how to gather facts or if you do not even know that you need them, chances are you will only depend on your hunches.
Effective business decisions depend on the presence of alternative choices. Most decisions are unidirectional, that is it involves changing one method or thing to another and usually better option. However, if you want to improve the quality of your decision, then you have to consider multiple alternatives as long as they fit the criteria you have set for the decision.
Commit to the Decision
The importance of decision making especially if the decision seems big and challenging lies in how you divide it into smaller tasks. Unless you specify a time frame and formulate milestones for the decision, then chances are nothing will happen. People tend to forget things if they are not a matter of personal priority. Furthermore, it is necessary that you establish a feedback system or a session for evaluation after every milestone is reached. Also, if you do not try to communicate the decision or enforce it, then it will never be properly implemented. If you are the leader, you should establish responsibility for it by encouraging your subordinates or fellow board members to follow it through.
At The Startup Expert ® we believe that if you want to want to know how to make effective decisions, it is all about doing it with a purpose, using facts, having multiple alternatives, and carrying it out effectively as a part of group effort. The future of your company relies on how a leader or subordinate cooperate with each other and think logically about a certain problem. If you need any help with your business decisions, you may contact us.