Dos and Don'ts of Making Better Decisions
Every day brings new decision-making challenges in running a business: who to hire, what vendors to select, the best pricing for your product or service, what kind of marketing message your company should use – just to name a few.
The repercussions of each of these decisions can be significant. That's why the ability to make timely and well-considered decisions is an essential trait of a successful business owner.
Use these tips as you think about the important decisions you need to make for your business:
DO take your time
The fast pace of our world can lead us to believe that successful people can
make reasoned decisions quickly. While quick turn around decisions are sometimes
the only option, the reality is that even decisive, successful people with
stellar judgment usually benefit from taking some time to fully understand
the decision required, review available options and think through outcomes
before arriving at a good decision.
DO use analytics to identify problems
Consider what you need to know to help you make smarter decisions – data and metrics can inform decision making and give you a clearer picture of the landscape in which you are operating. It can also round out your understanding of potential outcomes and possible solutions.
DO identify your best decision-making approach
Some business owners benefit from writing a pro and con list, others like to
think quietly, some like to talk decisions through as a means of clarifying
the core issue and the available options. Once you have identified the style
that leads to your best decision-making, make the time and stick to that style
to enhance the likelihood that your decisions will be sound.
DO focus on goals
Company goals should always be a filter for decisions. Remind yourself, or your
decision-making team, of company goals to be sure that the pressures of the
moment, the analytics and other factors do not take the decision in the wrong
direction.
DON'T let data paralyze your decision making
Using data to drive your decisions doesn't mean you have to forsake intuition. Ideally, you want to use data to develop educated intuition – that is, intuition informed by solid, reliable and timely information. But be careful not to let data paralyze you – try to avoid putting off an important business decision because you don't have all the data you would like to have.
DON'T shoot from the hip
It is likely that you have strong feelings about many aspects of the business
about which you are making decisions. While this passion is a great engine
for driving your energy to learn the details of the issues, the interdependencies
and the options, try not to use it to actually make the decision. Your strong
bias toward or against something can easily sway a decision when your make
it emotionally instead of critically. While prior experience and preferences
can be used to inform future choices, try to avoid letting them cloud your
view of the broader picture.
DON'T make decisions in a vacuum
Though you may be responsible for the outcome of a decision, other people are likely to be affected by the choices you make. Consider who in your organization has a vested interest and discuss you choices with them, both to gather relevant input and to be sure that others are not caught off-guard by the conclusions you reach.
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