Decision-making is a moment that requires the utmost care by managers in any industry or situation within a company.
Misguided or even hasty choices can determine the success or failure of some sale or even the business as a whole.
On the other hand, if the internal process is straightened out, if the steps for decision-making are fulfilled, there is a huge chance of better results from this choice.
Whatever the issue or situation, making decisions requires and always will require great calm and care. Also because, invariably, this decision-making will involve financial costs and people – or both.
Reason and emotion. Choose from so many alternatives. Define the future of one or many people, of a large, medium or small company. Making decisions is not an easy task and you need to be calm and surrounded by all the information to do so.
In this article, we’ll talk about the importance of fulfilling this mission as carefully as possible. We list some factors that cannot be neglected so that this task takes place in the best possible way and that everyone can have the best experience.
The intention here is to facilitate a little the decision-making process that, however much we postpone, will become inevitable at various times in our lives. Be it professional, be it personal.
Stay with us.
Serenity amidst chaos: decision-making within companies
Ok, we know that the word “time” is not always present in moments when it is necessary to act quickly and decide. There are situations that require quick thinking and we cannot neglect that.
However, for this to happen in the best way, be always aware of what involves you.
If you need to quickly decide where to invest your sector’s funds, be aware of how much is available and what the number 1 need exists.
People and numbers. When we talk about a sales leader, for example, it is essential that he has these two factors in mind. Decision-making involves people. For this reason, the responsibility of those who do it is very big.
The ability to decide safely in the midst of “chaos” is a virtue. Serenity and assertiveness are very strong signs of a great manager.
And if it manages to engage everyone around the decision taken, without a doubt we are talking about the most positive scenario of all.
However, many leaders are not born. When we talk about a sales manager, coaching can be the way out so that the best in each one can be stimulated and expressed.
More than that. Developing new skills, dealing with frustrations and gaining more confidence are gains that this training can bring.
After all, the more secure the manager, the easier the decision-making will be. It can take place in a serene way, in the midst of any difficulty that presents itself.
Within these scenarios, it is possible to follow two paths, in general.
It is the decision that exposes the values of the decision-maker much more than the logician. After all, it’s a deduction process. It involves emotions and, in theory, occurs in smaller situations, without as much risk involved.
Instinct and experience, on these occasions, are essential. They weigh decisively for the decision to be made.
It’s time to be objective. Managers who see their business in a rational and systemic way tend to make decisions this way, whatever they are.
The possible developments are calmly analyzed. Several factors are taken into account to decide what can be done.
The different types of decision-making that exist
Before we understand factors that contribute to more assertive decisions, we need to understand their different types.
Also because not always (or almost never) we will have the perfect scenario to decide the future of something or someone.
Herbert Simon was a researcher in the fields of informatics, public administration, economic sociology, cognitive psychology and philosophy.
Born in Milwaukee/USA, he was responsible for creating the so-called Decision Theory that involves mathematics, philosophy and statistics.
Thus, according to her, decision-making is divided into:
According to Simon, programmed decisions are all those that are repeated on a daily basis. When these moments arise, as they are routine, they facilitate decision-making. It often follows the same process and end result.
Thus, it is easy to repeat actions previously taken and that already shows how the splits will be. It’s repetitive and at the same time safe.
Examples? Equipment maintenance, purchases with suppliers, granting discounts to customers, among others.
These are decisions that, although predictable and routine, rely on one or another factor that escapes routine. In other words, only part of the issue already has actions taken. The other needs a new decision making.
It then requires the manager to use his skills, his empirical knowledge to decide.
Examples? Buy from a supplier who has increased the price over the last purchase. Is it worth keeping or looking for a new one?
Or, the customer did not pay the ticket within the established deadline and asked for a little more time. You grant or refuse. If you concede, it can become a habit. Is it healthy for this to happen?
Simon explains unscheduled decisions as all experiences, new situations, which never happened to the person or the company.
Therefore, there are no actions or practices already done and known results. It’s time to decide based on what you know and believe.
Intuition or reason will depend on the degree of complexity that the mission involves.
Examples? The supplier simply does not deliver what was contracted and this delays all its production and sales.
What to do if this has never happened before? Asking for more time for customers, hiring another supplier as an emergency? But do you know where to find it? Is there funding for this?
These are issues that need to be resolved and time is not always something you have.
5 factors for assertive decision making in your business
Scheduled, semi-programmed or unscheduled, it doesn’t matter. To make decisions correctly, you need to take into account a few factors.
Whether in personal or professional life, it is not possible to impulsively carry out important things. Deciding will always involve financial and/or emotional risks for whoever is involved.
Therefore, we have separated 5 points that you should pay attention to when making a decision.
1 – Be informed of everything at all times
Your company’s future is very important and you know it better than anyone else. Therefore, making decisions cannot be something you do on the basis of intuition alone.
Although it is important at times, it cannot be law.
Search. Study. Chat. Share knowledge. Listen.
For example, let’s say your idea is to expand your business. Do market research, understand, discover the ideal customer profile, map their needs and segment opportunities.
Arm yourself. Don’t skip this step in the decision-making process. The first step is the most important on the journey. And starting wrong can be a point of no return.
2 – List the options and their consequences
Pros and cons are listed on a paper or aboard, in a visual way. Doing so can help you make a more assertive decision.
The idea here is not to let anything slip away. List all possible deployments. Project what the immediate future of your business will look like if you take path A, path B, etc.
Use all the data you have to your advantage.
Let’s say you have to decide something about your sales team, for example. Take advantage of the information you have in your sales system, such as a sales CRM, to be fair when deciding.
Thus, you will contribute to a much healthier sales routine in your company. Your business is grateful!
3 – Look from the outside
When we are “immersed in our heads” in something, we often miss important issues. After all, we ended up getting too involved. We lived it intensely and focused on fewer things than we should.
Do a brief distancing exercise. Look outside. Take a more panoramic view of the scenery. Yes, you don’t always have time for that, but whenever you can, but this habit into practice.
This will help you gain valuable insights. Thinking calmly, analyzing, noticing the behavior of people or the segment itself will give you more peace of mind when deciding.
4 – Get advice from someone who knows more than you
Recognizing that you don’t know everything is crucial to assertive decision-making. There’s nothing wrong with being humble and seeking help from someone who knows more than you, whether management or technical.
You need to do what’s best for the company, and you want to do it in the best way possible for everyone.
Look for influencers within the company to resolve internal issues. But also look outside to make your business grow and have better results.
Identify in your network of contacts who can be positive for the company. Don’t be afraid to go after people you think can help. The “no” you already have, right?
Chat, seek opinions, discover best practices, share your pains with professionals you understand are a reference.
Everything is valid to equip you to make decisions. Whenever possible, as best as possible, evaluate everything that is involved.
5 – Don’t waste the time you don’t have
Discussions and more discussions. Meetings and more meetings. It’s okay that you don’t want to make mistakes in the choice you make, but there are totally unproductive practices. They hinder much more than they help.
Avoid long debates and boring meetings. This will only lengthen the decision-making process. This wears out everyone involved who will no longer have the patience to take the necessary care. They can opt for the quickest solution to get rid of the problem quickly.
And that just can’t happen.
Set a time to discuss the problem. An hour might be enough. Set a time for each person to speak and record everything so that what has already been said is not repeated. Apply agile methods and seek a quick and assertive solution to things.
In this way, security will be much greater. You will be ready to make decisions that positively affect everyone within your company.
So, how can we help you?
If you have a problem with decision-making within your company or have doubts about the text: TALK TO A CONSULTANT.
Enjoy and read two articles that may be useful for you.
The first talks about the 5S methodology, which can help your company to know which direction to take.
The second deals with what SWOT analysis or SWOT matrix is. It contributes to strategic planning and helps managers decide on business directions.