What is the first step in deciding what action to take as an organization?

Strategic decision making is a critical skill for effective leadership. The outcome of a leader‘s choices significantly impacts employees, customers, the market, and ultimately the success of the company. Developing such a skill requires a combination of knowledge, experience and intuition. It also requires a process to help define the problem and select the right course of action. Here is a method to help you successfully navigate the decision making process.

Making Strategic Decisions — 5 Steps for Success

• What is the problem? Can it be solved? Is this the real problem or a symptom of a larger one?
• Does it need immediate attention or can it wait? Is it likely to go away by itself? Can I risk ignoring it?
• What is my objective? What‘s to be accomplished by the decision?

2. Gather Information — Seek information on how and why the problem occurred:

• Stakeholders: Talk to individuals or groups affected by the problem
• Facts and data: research, benchmarking studies, interviews with credible sources, observed events
• Constraints: Lack of funding, resources, cultural barriers
• Ask: What am I not seeing? What have I missed?

3. Develop and Evaluate Options — Generate a wide range of options:

• Choose options that show promise, need more information, can be combined or eliminated, or will be challenged.
• Weigh advantages/disadvantages of each. Consider cost to the business, potential loss of morale/teamwork, time to implement the change, whether it meets standards, and how practical the solution is.
• Predict the consequences of each option. (“If/Then” or “What if?”)
• Ask: What is the worst solution?

4. Choose the Best Action — Select the option that best meets the decision objective:

• Consider factual data, your intuition, and your emotional intelligence when deciding a course of action.
• Accept that the solution may be less than perfect.
• Consider the middle ground. Compromising on competing solutions may yield the best decision.

5. Implement and Monitor the Decision — Develop a plan to implement and monitor progress on the decision:

• Step-by-step process or actions for solving the problem
• Communications strategy for notifying stakeholders
• Resource identification/allocation
• Timeline for implementation
• Measurements/benchmarks to gauge progress

In business (and in life), decisions can fail because the issue has not been clearly defined and alternatives have not been carefully considered. Rather than delay the decision or make one based on faulty information, this model ensures that the right problem gets solved at the right time and in the right way.

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From the moment we wake up, we make a variety of decisions. These tiny, big decisions are changing our lives for good or worse. They have the power to affect our lives, both personally and professionally. Sometimes the decisions we take are logical or irrational, and they depend on both internal and external considerations. So, the decision we take must be contemplated seriously. But decision making isn't as straightforward as it sounds.

What to wear, which restaurant to go to, or even finding the right music to jam with our friends, stimulates our decision-making thread. But unlike these little daily decisions, there are some serious choices that we have to make.
For example, which career path to choose, make a healthy lifestyle change, or make a final call for our client presentation. Every decision leads to a result, followed by some consequences.

Therefore, the choices we make must be considered carefully by taking the right steps before making the final decision. But how to do that?. Let us first understand what decision-making is before we dwell on the stages of the decision-making process.

What is Decision-making?

According to the Oxford Advanced Learner's Dictionary, the term decision-making means deciding about something important, especially in a group of people or organizations.

Decision-making requires choosing a course of action from two or three potential options to find a solution to a given problem.

For management, decision-making is an integral part. Making sound decisions is essential, so leaders or managers give special attention while making any business decision.

The decision-making mechanism can be seen as a power and balance system that keeps the business expanding upward and linear. This means that the decision-making process seeks a target. The goals are pre-set corporate objectives, the company's mission, and its vision.

To achieve these objectives, businesses can face various barriers in administrative, organizational, marketing, and operational fields. A systematic decision-making mechanism resolves these topics.

5 Steps To Effective Decision-making

1. Identification

The first step is to identify the purpose and goal of your decision. Why do you want to take that decision in the first place? What problem does it solve, and why it needs to be solved? Identifying the goals gives a clear picture and helps you make a decision objectively.

This enables you to analyze the situation and help you figure out the dos and don'ts. Identification of our goals before making a decision also gives us diverse perspectives and rational thinking. Therefore, the first step in decision making is identifying your goals and answer all the "Why's."

Also Read: Goal Setting For Employees: 5 Useful Tips

2. Gather All The Information

Gather all the relevant information that you need. Do the internal self-assessment first, then look for external sources. Today it is much easier to get any information, read the books you need to, or get online help to accumulate it. Also, be mindful of the alternative options, if any.

Gathering all the information is critical to solving your problem. If you need to go out and take expert advice, do it. Once you find the data and the relevant answers, absorb them to make the next calculated step.

Also Read: Problem Solving Skills That Managers Need To Have

3. Consider The Pros And Cons

Every decision that we make has some consequences. Make a list of all the possible pros and cons of the decision and how it can impact you in the future. This will help you decide better and make you more aware of the situation.

Considering the consequences has many benefits. It gives you many perspectives to choose from. The actual results might also vary from the ones you have anticipated. However, it will still give you a clear picture to weigh and evaluate from the results.

4. Decide

Think a thousand times before taking a decision. But after taking the decision, never turn back even if you get a thousand difficulties. ~Adolf Hitler

Once you are done identifying your problem, collecting relevant information, weighing the pros and cons, you are ready to make the final decision. This is the time when your instinct works for you.

Be aware of the intuition that you get while making the final decision. Ask yourself how you feel while making the last call. If you have doubts, try to evaluate your decision once again if you need to. An impulsive decision can always put us in trouble. Therefore, re-evaluate and ask yourself if the decision has short-term benefits or long.

5. Review your Decision

After you make the decision, please don't leave it alone. A decision that is taken can teach us a lot. The positive outcomes give you confidence. At the same time, the not very positive ones will help you understand the problems better.

They say failure is not the end; it is always a learning experience and helps us grow. So keep the right attitude even if you fail to hit the target, making a better decision-maker over time.

Final Note!

Considering the above steps before making a decision is a decision itself. Isn't it? I hope the blog could help you make a better decision-maker. Do share your thoughts on decision-making in the comment section below or if you have any insights/questions regarding decision-making.

Also Read: Decision Fatigue- Have You Fallen Prey To It?

This article is written by Braja Deepon Roy. He works as a Content Creator and Digital Marketer at Vantage Circle. He actively participates in the growth of corporate culture and keeps himself updated in this space. For any related queries, contact [email protected]

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