Decision making in a company | All the keys to be effective
In the world of business and business, making decisions quickly and effectively is vital to success. The speed allows to advance the competition, reach market trends and avoid obsolescence in the business model. The problem is that in the decision making process in a company, sometimes many people, departments and processes intervene and this causes them to get stuck or lose rhythm.
Many large companies are overtaken by small startups precisely because they are not fast making decisions and acting. And nowadays if a company is not capable of maintaining a speed of progress equal to or superior to that of the market, it will be doomed to failure. If it is not your company who takes the initiative, your competition will do so.
But despite the fact that the importance of decision making in a company is key in all sectors; in technology, it is even more so. And it is for this same reason that we have seen in these sectors new methodologies and systems of internal organization that favor the agility in the processes. It is easier to create and incorporate these methodologies in a company that is being born and that is still malleable than to do it in a large traditional company where bureaucracy, custom, and a rigid structure make it very complicated.
In this article, we are going to see some of the most important keys so that the decision making in a company is as fast and effective as possible. And although we know that making good decisions is complex when you derive a great response from them, it is transcendental not to get stuck in them. Better a bad decision in time than no decision.
10 Tips for making decisions in a company
The ten general tips that we propose you can apply them jointly or individually. It will not always be necessary to apply them all since one can only trigger the decision. It is important to internalize them so that when you face important decisions, the application of your reasoning arises almost unconsciously.
It is key that we put a deadline and that we do not exceed the marked deadline.
Having clear the deadline we have to make a decision will make us coordinate more effectively our efforts and those of our team to gather the necessary information. Without a set date, it is usual to focus on other tasks that are easier to complete, so we postpone making the decision indefinitely, taking it to a point of no return.
If this is an important decision involving several people on the team, mark this date on the shared calendar and, if necessary, establish periodic meetings in advance.
It is normal to make a decision as accurate as possible we try to collect all the relevant information that can help us. The problem in this sense is that sometimes we put more focus on gathering information than meditating on the decision itself.
An overwhelming amount of information could saturate us and make the decision even harder. It is for this reason that we must be clear about what information and data are really relevant to the case and discard everything else; not only save time but also avoid adding unnecessary complexity.
Sometimes CEOs, managers and other positions with great responsibilities tend to bring together all the decision making in your company, department or team. This is even more common in all those entrepreneurs who launch their business ideas successfully, taking charge of all the decision making in the company. When this grows in employees, they have trouble to get away from that responsibility and go on to become micro-managers.
But decision making in a company cannot fall on just one person or a group of managers. Sometimes, depending on the magnitude of the decision, it is important to delegate other people on the team. First of all, because we can leave them in the hands of someone with more specialized knowledge and with greater criteria, and secondly because if we find ourselves taking multiple decisions at the same time, we will lose our effectiveness.
What would make the CEO of a large company take the most minimal technological decisions if you have a team of engineers with greater knowledge for it? None and for this reason, the delegation of this responsibility is so important.
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Something very common in making decisions in companies is to put on the table more options than necessary. If there is an option A, a B, and a C; sometimes we tend to complicate it with another option D, E, F, and G. It is in these occasions when we must ask ourselves if we really have to take into account so many options when making the decision. It will help to decision making in a company.
Simplifying these options will simplify the difficulty proportionally when deciding.
One of the most effective analysis when it comes to giving clarity in decision making in a company is in risk-benefit analysis. This study basically consists of a comparative axis in which we must face the risk and benefit variables.
The interesting thing about this analysis is that it is relatively simple to perform but at the same time it offers great visibility on the decision we have to make. We can better calibrate the risk-taking and sometimes it will allow us to make more sensible decisions that will assure us small victories without incurring great risks.
6. Ask your subconscious
The subconscious should never be in charge of making decisions but still may have valuable information to give us. What do we really want? What does our intuition tell us?
Sometimes it is difficult to answer these questions because of all the noise that we have in our minds when deciding on one option or another. In any case, there is a little trick that allows us to deceive our brain: surely you have felt on more than one occasion, by throwing a coin to make a decision, that at that moment you knew which side of the coin you wanted to see appear. It is at that moment when the decision seems already made when it is easier for our brain to reveal its true desires.
If in your company or team there is no one with more knowledge or experience than you in the area of the decision you want to make, sometimes it helps to ask for expert advice. That is, ask people who have gone through similar situations or who have very specific knowledge of the subject.
Sometimes an expert vision can resolve any doubts, not only because of the knowledge it can provide on the subject, but also because it is an external vision, it can provide a new perspective that is fresher and less conditioned.
Sometimes it is not necessary to resort to someone with more experience or more knowledge; Sometimes it is the team itself that can give us a good orientation when making a more accurate decision.
Depending on our position, it is easy for us to have a biased view of certain issues within the company. Having feedback from employees can be valuable in clarifying our vision and receiving opinions from different perspectives. In addition, not only is it interesting to ask for feedback for making better decisions. But the team will also feel more valued, listened to and more aligned with these decisions.
9. Collect customer feedback
Another source of valuable information for making certain decisions is feedback from our customers. And we can not forget that in the end. It is they who buy our products or hire our services and can also have an opinion about it.
Even if your perspective is not highly qualified, you can adapt your decision to a clearer market needs. The problem of collecting customer feedback is that it can sometimes be more complicated than it seems; if we want to do it on a small scale it will have to be more qualitative feedback. If we want to do it on a large scale it can be quantitative taking into account the most important metrics.
If you have a Plan B that takes into account the worst of situations with the decision made, you will have more peace of mind when making the decision. And it is that even with the clearest data, the most relevant information. The most structured meditation, it is possible that our premises fail and our decision is not the right one.
If we have a Plan B we can correct or mitigate the effects of a bad decision. Something that is not only good for this reason but also because it will help us to make the decision with greater calmness and less fear.
The big problem of inaction | Better a bad decision than not deciding
When making a decision, the best thing you can do is to make a good decision. The next best thing is to make a bad decision. And the worst thing you can do is to do nothing. – Theodore Roosevelt
As we mentioned at the beginning of the article, immobility is the worst decision a company can make. Not making decisions or taking them too slowly can precipitate a company’s future towards expiration. Competitors will come, with more agile and lighter structures, which will make decisions more quickly. And execute their ideas at a speed that will ensure innovation in the market.
If your company makes a decision and is the right one, congratulations! If a decision is made and the consequences are not as expected, you will learn from it! But if your company does not make any decision, or guess, or learn and only get stuck for long.
We hope that this article has been useful for you. And that you can apply the advice offered for the next decisions that you have to make in your company or even in your personal life. If you have more ideas or techniques for making decisions in a company. Do not hesitate to leave us a comment so that we can read them and incorporate them in future extensions of this article.