Decisions, decisions, decisions
As business owners, we are constantly making decisions. A decision can make or break a business. Complex and unpredictable interpersonal and personal issues are involved in the decision-making process and can result in anxiety. By Gerty Green
A decision is actually a risk-based judgment. The trickiest part is to decide between right and wrong. To make sound and effective, not necessarily clever, decisions we need to know what the decision is all about and what underlying realities are to be satisfied. The impact is more important than the technique.
Decision-making is a logical and ordered process that involves decision-making skills.
These skills show your ability in choosing between alternatives.
Problem-solving skills factor in the different viewpoints to consider the numerous variables required to make a sound decision. Emotions must be separated from the facts. Emotions can easily influence the process.
This is where emotional intelligence comes to play. It makes you critically aware of your emotions and how you are expressing them.
Leadership involves the act of organizing employees and motivating them to work on a common goal. A strong relationship with the employees results in a highly effective team as employees will have the courage to discuss any problems they recognize.
Consider all advantages and disadvantages as well as all available and relevant data points, whilst staying objective and grounded during the process. Keep your reasoning aligned with the people you trust and keep the goals in mind that you are trying to achieve. Reasoning is the main skill needed to make an informed decision. Reasoning does not stand alone it involves teamwork.
You need to decide on and trust your instincts. Your intuition comes from past experiences and your core values and will guide you in making logical and actionable decisions.
A unique solution is generated when your logical and emotional thinking comes together. Employees can be involved in brainstorming sessions to come up with short and long-term ideas to make productive decisions.
Decisions must be made within the time frame available. it is worth mentioning that it is not necessarily the speed that counts but the impact of the decision.
This sequence of steps must be followed to make effective decisions:
| Steps | Questions to ask |
| Classify the problem | Is the issue generic, exceptional, or unique? Generic issues must be addressed by using a rule or principle. Most solutions are based on a rule or principle but not all problems can be solved by applying old rules. |
| Defining the problem | What is the issue here? Is it the real issue or the symptom of something deeper? Test for signs that something out of the ordinary or unusual is happening. The definition must explain the events that occurred. |
| Specify the answer to the problem | What are the expected and minimum goals to be achieved? This is the most difficult step. Any decision you are making must have an objective in mind otherwise it is just a gamble. |
| Decide what is right rather than acceptable | What will meet the specifications before considering compromises? What are the alternatives? Compromises are needed most of the time and resistance to the decision will be encountered. But by starting with the question of what will be acceptable an effective decision is not reached. |
| Building into the decision the action to be taken | What is the action and who must know about it? What is needed to execute the action? Deciding on the actions to be taken is the most time-consuming step. The action must become a work assignment or a responsibility. The capability of the responsible person must also be considered. |
| Test the validity and effectiveness of the decision against the actual event | How is the decision carried out? Are the assumptions on which the decision is based suitable or obsolete? Remember what you cannot measure you cannot manage. |
A business owner using these steps together with the decision-making skills makes decisions that have a significant and lasting impact on the business’s success. Most important to remember is that decisions have no impact unless it has been put into action.