Important Decision Making Process
As quoted by Robert Frost in his “The Road Not Taken”; “Two roads diverged in a wood, and I took the one less travelled by, and that has made all the difference”, that difference is open to the reader. Just like that every decision may not be as simple as we think, it is not as easy as “Let’s just take this path and see where it goes”. This is more applicable on decisions regarding your business.
Taking right decision at the right time is the success behind every big and small enterprise. The position you hold is not a matter, it may be the manager of a small team or may be the head of a large corporation, decision making is what matter in business. Along with that you have to learn from the wrong decisions you have taken.
We will provide you with some important steps of decision making process- follow these steps to make more educated and profitable decisions and to get rid of hasty decisions.
Business Decision Making
Business decision making is a long process which includes various steps which allow the professionals to find solution for every problems by assessing evidence, analyzing proper alternatives, and finding an apt path from there. As a final step it helps to evaluate whether the decision was the appropriate one.
Decision Making Process: 7 Important Steps
Internet, business textbooks and several leadership presentations follow their own decision making process which are slightly different from the other. Though there are several steps, following are the most commonly accepted seven steps.
Problem identification is the first process as it is the basic to understand and study the problem for which you need a solution. If you fail to understand the depth and impact of the problem, the decision making will become useless as a line drawn in the water. If you have the intention to achieve any specific goal from your decision, you have to make it convenient and measurable.
Collect relevant information:
Collection of relevant information regarding the identified problem is the second step. As a part of information collection you have to start from the internal assessment of your company or organization. You have to evaluate the decision making history of your organization, whether it has succeeded or failed in decision making section. Collecting information from relevant external sources like studies and researches is a better option as it can provide you with updated information. In some cases information from paid consultants too has important role to play. It is in this stage that there is a chance to become bogged down into unnecessary information, you have to handle things in an appropriate way otherwise it will complicate the whole process.
Find out the alternative:
Finding out the apt solution or a better alternative is the most difficult part of decision making process as it has lot many options to consider. For example, if you plan to get more attention on social media, your alternative options include paid advertisements on social media, alteration in organic social media strategies, or an association of the two.
Next step is weighing evidences for or against the selected alternatives. It is in this stage that you need a deep understanding about the history of your organization. Here you have to study what companies have done to succeed in the previous conditions and identify the possible pitfalls for your respective alternatives and consider those against the most possible rewards.
Choosing the apt alternative:
Choosing the best alternative is the most crucial part among the all steps of decision making process. Now you are ready with relevant information and the possible paths to take, and it is time to choose the perfect alternative.
As you are ready with the decision now it is time to implement it. Your planning is the most important part because it is your plan which makes the decision more productive and tangible. If you can develop a proper project plan regarding your decision, you can appoint the team on their tasks.
Now you are at the final step and most crucial one. It is on this stage that you have to find answer for some important questions. Did you find solution for your problem? , Did you get the answer for your questions? , Did you meet with the goals you aimed? . I f your answer is ‘yes’ for all these questions , then note the plan for future reference and if it ‘no’ , learn from the mistakes and make it better for the next time.
Decision Making Devices
Decision making process has a plenty of devices which make the process easier and smoother one. Decision tree is one among them.
Sometimes you have to weigh the evidence depending on the decisions you have taken.Decision matrix is another one which helps you to evaluate your alternatives and to choose a most appropriate decision. Classic pros and cons list helps you to note down whether your alternatives meet all the criteria or whether they are at risk or danger. Above given are the most accepted and used steps for a decision making process which help you to make the accurate and accountable decisions in a faster manner.