Decision Making in Business

Decision Making in Business

The success of a business, regardless of its size, is determined by the decisions made by the leaders. When the professionals in leadership are able to make the right decisions, a company will always find the ideal path. Running businesses is becoming tough every single day. Helen Schifter, a renowned fashion editor and wellness expert has met many people struggling with decision making in their businesses. Most business leaders learn from their mistakes.

It is, however, very possible to have a successful business venture when the individuals in leadership follow these decision making steps by Schifter.

Start by identifying the problem

People make decisions after they have identified the problem in their establishments. A question can only be answered when asked in the first place. Businesses need to clearly define their decision. When the problem to be solved is misidentified, the solution will never be effective. Business leaders who select broad problems also end up with the wrong ideas in their establishments.

Gather the right information

When business leaders identify the issue they want to solve, the next stage is trying to gather relevant information. Businesses need to do an effective international assessment to be sure of the steps to take. Has the business done well or failed in this area in the past? Has the business encountered a similar problem in the past? How was it handled? External sources can be of great help too for the business. Businesses that want to be effective in their decision-making can invest in market research, studies or even pay consultants to get the right evaluation. Too much information, however, can mess the whole decision-making process for some businesses.

Check for alternatives

After lots of research and information is provided, the company can start the process of identifying the possible and most effective solutions to the problem. Always ensure that the business has several option when trying to meet goals. Businesses that want to have more engagement on their social media, for instance, can have options like paid social media ads, changing the organic social media strategy or other available options.

Look at the evidence

After the business leaders have found the available alternatives, they should look at the pros and cons of each. What have other companies done to handle their businesses when using the alternatives in question? Do you have previous wins or losses from the alternatives being used?

Select the best alternative

This is the most important stage in business decision making. This is where the real decision is taken. The stage is only arrived after gathering the right information and selecting what is best for the company.

Take action

When business leaders have arrived at a certain decision, they should confidently act on it. The business should develop an effective plan to ensure the decision is achievable and tangible. The team responsible for the task should understand everything in the plan.

Review the decision
After some time, review the decisions made. Did the decision solve the problem in the company? Sometimes, the decisions made might not bring the results everyone had in mind. Helen Schifter suggests learning from mistakes and starting the decision-making process all over again.

Written by