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Business world dynamics can be quite harsh. We usually need to make snap decisions within a very short period of time. And we all know that making decisions is not always simple, right?
This makes the process more difficult and stressful, especially when the decision involves other people and can have large-scale repercussions.
Making decisions requires a lot of planning and confidence, because choices ought to have a positive impact, whether in life or business.
With this in mind, we’ve provided you with a few tips to help you out in the decision-making process, making it clearer and simpler. Check them out!
Why making decisions can be so hard
Making decisions is a conflict that we all undergo throughout our lives —, many of us, on a daily basis, especially at work.
Choosing between different paths that could be followed involves a conflicting process, in which it is necessary to balance the positive and negative impacts. Many times, it means having to choose either a more rational or more emotional way to go.
We make several decisions on daily, from the outfit we’re going to wear to more significant decisions, such which college to go to, what product to buy, how to handle a project at work, among a plethora of others.
Naturally, decisions that are more complex tend to create more stress, because they make a greater impact.
Most people find that making decisions is hard because we usually need to choose between one option in detriment of the other. And it is this sense of loss, when we need to privilege only one side, which makes it more complex.
In truth, all of these problems stem from the fact that we don’t apply a method to help us out in the decision-making process.
What really happens is, without being able to rationally and correctly weigh out our options, we tend to freeze up and can’t make up our minds.
How do I make good decisions?
The decision-making process must be rationally thought-out, taking advantage of comparative and analytical steps that help when making a choice. With this in mind, we’ve picked 11 tips that can help you make better decisions.
1. Identify the problem
The first step in the decision-making process is to identify the problem. We usually have to choose between available options when there’s a problem to be solved, especially in the business world.
Therefore, knowing exactly what you’re dealing with is key.
2. Understand your options
By identifying the problem, it becomes easier to analyze the options that can be followed.
Try to verify, unemotionally, which paths are available. Take into account the values advocated by your business and the effect of each possibility.
3. Gather information
The expression “a shot in the dark” truly represents making decisions without any foundation.
It’s when we choose a path without knowing for certain what can happen. However uncertain the future is, we can always provide ourselves with as much information as possible and make the choice with much more conviction and confidence.
4. Recognize the possibilities
You already understand the problem, have pondered the options available and have the information. Now it’s time to analyze the possibilities by considering each option.
It’s at this moment that we verify the ramifications of our choices, contemplating the obstacles and possible problems.
When all of the options are laid out in front of us, we plan with greater precision and we can even create alternatives if the paths we see aren’t the most favorable.
5. Know your capabilities
In both the personal sphere, as well as in the business world, honesty is crucial when we analyze our capabilities.
The choice for a certain path also depends on the skills we have to deal with the decision’s repercussions.
For companies, this can be translated as the availability of resources, production capacity, and customer service, among others.
A company that makes uniforms for soccer clubs needs to decide, for example, whether or not it will partner up with a major entity in this segment.
Thus, it is necessary to balance its capacity to provide service and produce these uniforms, with the risk of not being able to meet the demand and consequently, fail in this endeavor.
6. Don’t be impulsive
Impulsivity is one of the greatest enemies of a good decision-making process. As you’ve probably noticed, the process needs to be done calmly and carefully, gathering all the information available and carefully analyzing the circumstances.
By being impulsive, we prioritize our emotional side. Therefore, you must be careful because although it might result in a good choice in certain cases, it presents a lower possibility of working out, since it wasn’t a choice based on techniques.
7. Establish deadlines
Depending on the choice to be made, you may end up postponing this decision repeatedly.
This causes us to give in to the desire of choosing impulsively when it is no longer possible to procrastinate. Therefore, always set a deadline for your decisions, respecting it and planning accordingly.
8. Use your experience
Experience is an aspect that must be taken into account when making decisions. We can use experiences from our past as an example of what to do in the present.
Although the decisions aren’t always the same, with experience you can foresee a certain aspect of what will happen based on our prior choices.
Whenever possible, make sure you test the ramifications of your choices.
Performing small-scale tests is a great way to understand how a decision can interfere in your business or in your life in the future.
10. Limit your options
When we think about the options we have when making a decision, we can find a vast selection of choices, which may hinder the process more than help it.
Therefore, carefully analyze the feasible paths and limit your choices as much as possible, eliminating those that are unlikely to have positive results.
11. Align your decision with your values
Finally, a very important point is to make decisions that are always aligned with the values practiced by your company or by you personally.
This means that certain options often times won’t even be considered, especially when they go against your principles.
How to act rationally
The decision-making process is complex and involves many aspects. Knowing how to analyze the possibilities and plan calmly with attention to detail is essential.
After all, decisions can affect the lives of others too, which makes the responsibility involved in this process much greater.
One of the ways of making better decisions for a business is by using integrated systems for process management. Learn about the ERP System and how it can go a long way in helping your company.