Business owners are forced to make dozens of decisions every day. Some are easy and instinctual while others are inherently difficult. Simply put, effective decision-making is a skill that every small business owner must possess.
There are two basic kinds of decisions: those that are arrived at using a specific process and those that just happen. Although both kinds of decisions contain opportunities and learnings, there are definite advantages to using a specific process to make a decision. The most obvious advantage is the reduced level of stress.
To be an effective leader – which is a must if you own a small business – sound decision-making is critical to your ongoing success since making the right decisions is the most important part of leadership. In turn, leadership is the foundation that every small business must have to succeed.
The bottom line: To be a valuable leader you must know what you believe in order to make good decisions.
Rudy Giuliani in his book Leadership, Mr. Giuliani covers a number of principles essential to solid leadership, with sound decision-making as one of those key tenets. Mayor Giuliani also provides a view of the September 11, 2001 World Trade Center attack, the aftermath, and major portions of his life. The book was started before September 11 but became a journal of how Major Giuliani used his organizational and leadership principles to address a national crisis.
For Mayor Giuliani, decision-making was not as much about what decision to make but rather, when to make it. He notes that he always examines and envisions the alternatives and never makes a decision until he has to. Leaders often have to make decisions between two or more imperfect options. In Giuliani’s view, sometimes decision-making involves knowing when to act when there is little time to reflect. Hear people out, but once you’ve made a decision stick to it.
Practical Strategies for Stellar Decision-Making Evident in Giuliani’s and prominent others’ leadership examples, good decisions are based on the values of the decision-maker and include options along with regular reassessments of the decision and its effects. However, only you can know what process works for you, based on the outcomes of your decisions. Here are some key decision-making tips to get your started:
- Define specifically the decision that must be made. When does the decision need to be made? Why is this decision important to you? Who will be affected by this decision? What values does this decision involve for you?
- Think of possible alternatives and write them down. Allow your mind’s eye to imagine various options without censoring them. If you need more information to help you come up with alternatives, consider talking with family, friends or professional organizations.
- Sort through your options and try to visualize each outcome. In addition, ask yourself if these outcomes are realistic. This tactic will help you effectively evaluate the alternatives that fit into your personal value system.
- Execute your decision, plain and simple. You always have the option to change your mind later.
- Make a plan to review your decision at regular intervals. Assess its effectiveness by asking yourself if the outcomes are what you expected and/or if they are satisfying the original need. If so, great. If not, identify what’s missing – perhaps you need more information – and revisit the process.
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