7 Tips for Making Quality Business Decisions
It can be hard to make difficult business decisions. It is impossible to predict whether the decision you make will lead to amazing results or cause damage.
McKinsey & Company’s survey found that only 20% said their organizations excel in decision-making. Although this is a shocking statistic, entrepreneurs can make their decision-making more efficient.
1. Take stock of your mental state
Today’s world is full of pressure to act quickly. Decision-making is no exception. It is important to remember that decisions are not always easy or intuitive. If you are feeling agitated, scared, or angry? You could make a poor decision that can have long-lasting negative consequences.
Take a moment to calm down if you feel your emotions are off. Deep breathing meditation and exercise are excellent ways to improve your mental health. This will best prepare you to make decisions.
2. Take the time to evaluate the data and situation.
Sometimes the information we have doesn’t tell all. You could make a mistake if you base your decisions on insufficient information. It is important to take the time to fully evaluate the situation. Ask lots of questions and be curious to get all the facts you need to make an informed decision.
Data can be both your friend and enemy when it comes to making decisions. Avoid information overload. A survey revealed that 44% found it difficult to make decisions due to the overwhelming amount of data. You don’t want to base your decision solely on quantitative data. Other factors, such as human emotion, are more difficult to convert into data.
3. Review your desired outcomes
Stephen Covey, the author of The 7 Habits for Highly Effective People, urges his readers “to start with the end in view.”It is much easier to make decisions when you know that your choices will lead you one step closer to achieving your strategic goals.
Before you make any decision Take a moment to reflect on your company’s mission and personal goals. If your goals are reinforced by the decision, it is a good indicator of the path to follow.
4. Identify your blind spots
Blind spots are areas in which you do not have the necessary skills, knowledge, or experience to make a decision that will negatively impact your decision-making. A merger with another company could prove disastrous if you don’t have a good understanding of contract law. Ask a friend to help you find your blind spots or weaknesses. You can even join a peer group with other owners of non-competing businesses. This will allow you to be more careful the next time you are faced with a decision that is involving one of your blind spots.
5. Involve others in decision-making
Although entrepreneurs and business owners can be solely responsible for the success of their businesses, they do not have to take all the decisions. You can often rely on the assistance of professionals such as lawyers, CPAs, senior managers, and human resources. You might be surprised at the new perspectives that can be gained by having other people involved in the decision-making process.
Also read: Top 10 Collaboration Apps for Your Business
6. Make a decision
It is important to carefully consider all options before you make a decision. However, it is better to be inactive than taking the wrong decision. It is up to you to decide.
It is a good idea to think about the worst possible outcome. You can accept the worst-case scenario and you will feel more comfortable knowing that you have the ability to rectify the situation in the event it does not work out as you had hoped.
7. Communicate your decisions
Once you have made a decision, It is important to inform all those affected by your decision about the direction you are heading. How you communicate your decision can impact how they are received. Some delivery methods work better than others. Simple decisions can be made with an email or memo. However, it may be easier to make difficult decisions and give detailed explanations in a face-to-face meeting.