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Interview Patty

How to Make Effective Business Decisions

Houston Financial Strategies for Small Business

One of the greatest skills a leader can have is the ability to make effective business decisions. Business leaders make dozens of decisions every day that influence the success of the company while also having an impact on employees, customers or the marketplace. Developing such a skill requires a combination of education, experience and intuition. 

There are many things that influence how an individual makes decisions. They include emotions, perceived personal and professional risks and rewards, preparation through experience or education, deadlines, stress and a host of others. It is important to mitigate the irrational and embrace the rational.

What goes into a business decision?

Whether decision-makers realize it or not, myriad factors must be taken into consideration before coming to a conclusion. Whether the decision-making skill is an innate gut feeling or one learned over the years, the bottom line is that being an effective decision-maker requires practice. Gayle Abbott, the president of Strategic Alignment Partners human resources consulting firm, recommends a four-point strategy to deploy whenever you must act:

  • Identify the problem.
  • Analyze the possible solutions.
  • Evaluate the possibilities that are likely to bring you closer to your goal.
  • Make the decision.

Making the decision

As President Theodore Roosevelt said, "In any moment of decision, the best you can do is the right thing, the next best thing is the wrong thing, and the worst thing you can do is nothing." When it comes down to it, the answer may not always be clear, even when using a rational decision-making process. But the only way forward is take a deep breath, gather courage and make the decision.

Review the decision

An effective decision is different than a "good" or "bad" decision. There is a middle ground that allows for the choice to have impact, although it may not have as much an impact as anticipated. Leaders need to recognize the difference and not categorize every decision in two simple categories.

Sometimes it is very easy to recognize a good decision, such as when sales numbers increase or a new employee rises to the top. Other decisions may require more reflection to determine if it was the right decision or if another option was better. Did the decision solve the problem or move your business forward?

This evaluation process is critical to gaining experience in making decisions and to improve a leader’s ability to make effective decisions. By applying lessons learned, a leader can recognize similar situations and feel more confident with other choices made and courses of action pursued. The key is to be effective, not necessarily just right or wrong. 

Source: BusinessNewsDaily

 

Patty Block, President and Founder of The Block Group, established her company to advocate for women-owned businesses, helping them position their companies for strategic growth. Charting the course for impactful, sustainable, profitable businesses, the beacon is control: of your strategic direction, your money, your time, your staffing, and your ability to bring in business. The Block Group brings together the people, resources and ideas that build results.

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