• Good Decision Making in Business

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    "The ability to make a decision, act on that decision and keep to it is fundamental for a business person to be successful."

    This was said by Andrew Carnegie, the great U.S. steel tycoon. In fact, he went further and said that any person that couldn't make a decision in a timely manner when all the facts were evident was someone not to be trusted, since they wouldn't have the strength of character to see through the commitments required by any decision.

    Yet we come across people avoiding making decisions frequently. Is it because the word derived from Latin literally means to cut away from and literally break completely from one state to another?

    Procrastination over decisions is fatal for a business owner as decisions come before actions and the right actions lead to the desired outcomes. Sometimes, though, the right decision isn't all that obvious and how to get to that decision isn't all that easy for some people. So it’s worth exploring a number of ways to help and below are a number of ways to approach decision making.

    1. Basic Pros and Cons: This is the simplest method. Draw a line down the middle of a piece of paper and on the right write down the reasons for doing something and on the left the reasons against. Sometimes just doing this adds clarity, especially if done with another person to brainstorm all the factors.

    2. List outcomes from decision and rank importance: Draw a basic grid and down the left and write down the desired outcomes you're looking to achieve from making a decision. Then rank them 1-5 on how much of an impact the decision is likely to have. This helps you see how much the decision will assist with your goals.

    3. Comparison Matrix: Draw a grid. Across the top, write down the different decisions to make i.e. which product to make or which supplier to choose. On the left, list the different outcomes desired. Then against each write a score 1-5 against each column. Again this adds clarity to making choices between alternative decisions and it's especially useful when there are trade-offs to be made. The use of this matrix method is very effective in marketing when looking at different products or markets to go to versus the companies list of core competencies.

    The key is that decisions have to be made on a constant basis and quickly if the entrepreneur is to make progress in achieving goals.

    It goes back to time being a limited resource so wasting time postponing decisions has a very detrimental effect on the company and the person. In a worst case scenario, failure to make a decision can mean a competitor gets ahead, a customer goes elsewhere, staff get demoralised or the world moves on. So, make a decision to advance yourself and your business in good order and if the above tools help then great. 

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    Action Coach --> https://jeremybarbee.actioncoach.com
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