What do you do if you're unsure about the potential risks and rewards of strategic decisions?

1 Assess the situation

Before you jump into any decision, you need to understand the context and the goals of the situation. What is the problem or opportunity that you are facing? What are the desired outcomes and the criteria for success? What are the constraints and the assumptions that you have to work with? By asking these questions, you can clarify the scope and the purpose of your decision, and avoid getting sidetracked by irrelevant or misleading information.

2 Gather and analyze data

Once you have defined the situation, you need to collect and evaluate the relevant data that can inform your decision. This may include quantitative data, such as metrics, trends, or forecasts, or qualitative data, such as feedback, opinions, or experiences. You also need to consider the sources, reliability, and validity of the data, and avoid any biases or errors that may skew your interpretation. By gathering and analyzing data, you can identify the key factors and patterns that can affect your decision, and support your reasoning with evidence.

3 Generate and compare alternatives

After you have gathered and analyzed the data, you need to generate and compare different alternatives that can address the situation. You can use various techniques, such as brainstorming, mind mapping, or SWOT analysis, to come up with creative and feasible options. You also need to weigh the pros and cons of each alternative, and estimate their potential risks and rewards. You can use tools, such as decision matrices, scoring models, or scenario analysis, to rank and evaluate the options based on your criteria and goals.

4 Choose and communicate your decision

Once you have generated and compared the alternatives, you need to choose and communicate your decision. You should select the option that best meets your criteria and goals, and that has the highest expected value and the lowest acceptable risk. You should also explain the rationale and the evidence behind your decision, and how it aligns with the vision and the values of your team or organization. By choosing and communicating your decision, you can gain the trust and support of your stakeholders, and ensure a smooth implementation.

5 Monitor and review your decision

After you have chosen and communicated your decision, you need to monitor and review your decision. You should track the progress and the results of your decision, and compare them with your expectations and benchmarks. You should also solicit and incorporate feedback from your team, customers, or partners, and identify any issues or opportunities for improvement. By monitoring and reviewing your decision, you can assess its effectiveness and impact, and learn from its outcomes and consequences.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?