As an entrepreneur, you face many decisions every day, from choosing your product features to hiring your team members. How can you improve your decision-making skills and avoid costly mistakes? Here are some tips to help you make better choices for your business.
The first step in any decision-making process is to clearly define the problem you are trying to solve. Sometimes, the problem may not be obvious or may have multiple aspects. For example, if your sales are declining, you need to find out why and what factors are affecting your customers' behavior. To identify the problem, you can use tools such as brainstorming, SWOT analysis, or root cause analysis.
When you decide who you want to be, you’ll know what to do. - Act from your future self. - Act from final cause. - Act from “I am” not “I will.” Rescue your dreams from the end of a timeline by acting from the goal of the goal, not endlessly toward it.
I took two very good courses at Arizona State University - both on decision analysis. One of the important points that cause many folks to have trouble making sound decisions (business or otherwise), is the mistake of including too many non-relevant factors or factors with very little importance into the "equation". Once you have determined the most important and relevant factors, another good approach is to determine how much "weight" to assign each factor. The use of a decision tree (MS Excel has an excellent "Add-in" for this), can help organize the "problem"; this is especially helpful when the problem contains many important variables.
To enhance decision-making skills in entrepreneurship: Reflect on past decisions, seek feedback, develop decision-making frameworks, improve problem-solving abilities, practice critical thinking, stay informed, embrace uncertainty, take action, delegate wisely, and remain flexible. In short, decision-making skills are not developed overnight; it require years of experience and hard work to ensure your decisions are effective.
In my entrepreneurial journey, I've learned that the best way to identify a problem is to engage in conversations with people who may be experiencing the issue you're trying to solve. It's as simple as that. By speaking with individuals and grasping the magnitude of the problem and its difficulty for them to resolve, you then have a clear path to begin building solutions. As incredible as it may sound, this approach works remarkably well for nearly anything. Conversing with people provides us with the capacity to comprehend the world from various perspectives. This type of insight enables you building amazing businesses.
To identify problems in decision-making, consider using the Stakeholder Analysis to understand who to involve in the process, the Vroom-Yetton Jago Decision Model to decide on the decision-making approach, and tools like the Fishbone Diagram and 5 Whys Analysis for root cause identification. Mind Maps, Six Thinking Hats, and the Reframing Matrix are effective for exploring alternatives. To evaluate options, PMI Charts, Risk Analysis, and SWOT Analysis can be useful. The Decision Trees and Eisenhower Matrix can help select the best solution .
The next step is to collect and analyze the information that is relevant to your problem. This may include data from your market research, customer feedback, industry trends, competitors, or internal resources. You should also consider the assumptions, biases, and risks that may influence your decision. To gather relevant information, you can use tools such as surveys, interviews, focus groups, or online research.
Collecting and analyzing relevant information is indeed the next crucial step in the decision-making process. Utilizing data from various sources such as market research, customer feedback, industry trends, and competitor analysis provides valuable insights. It's important to also consider assumptions, biases, and potential risks that may impact the decision-making process. Employing tools like surveys, interviews, focus groups, and online research helps gather comprehensive and accurate information to inform your decisions effectively.
Collectez toutes les données et informations qui peuvent vous aider à comprendre le problème et à envisager des solutions possibles. Cela peut inclure des recherches de marché, des conseils d'experts, des études de cas et des feedbacks de clients ou d'employés. L'objectif est d'avoir une vue complète et informée.
Gathering relevant data is crucial for informed decision-making. It provides insights, identifies patterns, and minimizes biases. To ensure relevance: Define clear objectives: Understand what information is needed. Source wisely: Collect data from reliable channels. Filter rigorously: Exclude irrelevant or outdated data. Context matters: Consider the situation and audience. Regular updates: Keep data current for accurate decisions
Determining the root cause... easy! Ummm or so you think. After a thorough analysis of all data and the relevant information you should have a clear path of understanding what you are up against and what will make the most impact quickly is the next step.
I find it immensively helpful to talk to people who are further down the path than I am - how did they make decisions, which factors do they take into account, what is important to them? It is not about me trying to copy-paste them, but rather learn how they make decisions - this helps me to refine my own decision making skills and figure out where I may have blockers I am not fully aware off.
The third step is to generate and evaluate different possible solutions to your problem. You should try to be creative and think of as many options as you can, without judging them too early. Then, you should compare and contrast the pros and cons of each alternative, using criteria such as feasibility, impact, cost, time, or quality. To generate and evaluate alternatives, you can use tools such as brainstorming, mind mapping, or decision matrix.
Generating and evaluating various solutions is indeed the pivotal third step in the decision-making process. Encouraging creativity and considering numerous options without premature judgment is crucial. Once alternatives are identified, it's essential to compare and contrast their pros and cons using criteria such as feasibility, impact, cost, time, and quality. Tools like brainstorming, mind mapping, or decision matrices facilitate the generation and evaluation of alternatives, enabling informed decision-making based on thorough analysis and consideration.
Créez une liste d'options possibles, sans jugement initial sur leur faisabilité. Ensuite, évaluez chaque alternative en fonction de critères prédéfinis, tels que le co?t, le temps nécessaire, l'impact potentiel et la compatibilité avec vos objectifs d'entreprise. Cela vous aidera à rester objectif et à prendre en compte toutes les possibilités.
Generating and evaluating multiple alternatives is crucial for effective decision-making because it promotes creativity, mitigates biases, and enhances problem-solving. Limited options may overlook innovative solutions, while an excess can lead to decision paralysis. A balanced set ensures thorough consideration, better risk assessment, and increased likelihood of identifying optimal solutions tailored to the situation. This process fosters adaptability, critical thinking, and informed choices, ultimately leading to more successful outcomes.
Imagining different outcomes based on alternative decisions can be a powerful exercise. It helps in understanding the potential impact of various choices and prepares you for future scenarios, fostering a mindset that evaluates multiple possibilities before making a decision. Analyzing the conditions under which good decisions were made can help replicate those circumstances in the future. Whether it’s the amount of information available, the people involved in the decision-making process, or the timeframe, understanding these conditions can guide you toward making better decisions.
Open up the table and everyone minds to lend thoughts on how and what the steps will be in the process going forward. This will get everyone onboard and create unified buy-in so that everyone gets on board with the new plan. As they were a part of making it right!
The fourth step is to choose and implement the best solution based on your evaluation. You should also communicate your decision to your stakeholders and explain the rationale behind it. Then, you should take action and execute your plan, while monitoring the results and feedback. To choose and implement the best solution, you can use tools such as voting, consensus, or action plan.
1. Find a mentor that has done it before and talk about the issue 2. Read the right book(s) 3. Find the right video in You Tube 4. Talk to another person with similar job as you to learn
One thing that I found helpful when making important business decisions is to ask myself 2 questions. 1. In 20 years time will I look back on my decision and say it was a good one taking into account all of the environmental issues and 2. Is it the “right” decision to make. That has served me very well.
Once a solution has been discovered be prepared to move quickly and adapt. Also select 2 or 3 key performance numbers that will enable you to measure meaningful results from your decisions and actions. This will avoid a lot of work that produces very little in terms of movement towards to end result. Keep it so simple that you could explain it to a kid. Then drive hard at them in a focused way and don’t be afraid to change them if they turn out to not be the right ones. Success in problem solving is never a straight line so be ready for it
Choosing and implementing the best solution is crucial for achieving optimal outcomes in any endeavor. It ensures efficiency, cost-effectiveness, and ultimately, success. To arrive at the best solution, utilize tools like SWOT analysis to assess strengths, weaknesses, opportunities, and threats. Conduct thorough research, gather data, and seek expert advice. Employ decision-making frameworks like cost-benefit analysis, decision matrix, Pareto Analysis or decision trees. Additionally, utilize collaborative platforms for brainstorming and consensus-building. Regularly evaluate and iterate solutions to adapt to changing circumstances. Remember, the right solution can pave the way for sustainable growth and competitive advantage.
ACTION plan! Layout the plan for the team. Create the action plan with the team and make sure it is clear and concise and that people are aware of what they are and are not accountable for.
The fifth step is to review and learn from the outcome of your decision. You should assess whether your solution achieved the desired goals and solved the problem effectively. You should also identify what worked well and what could be improved in your decision-making process. To review and learn from the outcome, you can use tools such as feedback, evaluation, or reflection.
I've learned that the most valuable lessons in business come from earning revenue. When you create something and people are willing to pay for it, that's the ultimate validation of your efforts :)
Une fois la solution mise en ?uvre, analysez son efficacité en comparant les résultats obtenus avec les objectifs fixés. Cela peut impliquer de recueillir des feedbacks, de mesurer les performances et d'identifier toute conséquence inattendue. Utilisez ces informations pour ajuster votre approche si nécessaire.
Reflecting on outcomes is essential for growth and improvement. Here’s why: Learn from Success: Identify strategies that worked well. Analyze Failures: Understand what went wrong and why. Continuous Improvement: Apply lessons to enhance future decisions. Adaptability: Flexibility ensures better results. Remember, wisdom comes from evaluating experience!
I would add “Tiny victories”always good and proven strategy in many aspects . Simplified and and breaking down complex problems or process would make more effective evaluation and improving decision making process
Ich lasse die Ergebnisse durch mein Team mit der Methode DURALOGIE bewerten und dabei weitere Optimierungsvarianten erarbeiten.
The final step is to improve your decision-making skills by applying the lessons learned from your previous decisions. You should also seek feedback from others, such as mentors, peers, or customers, who can offer you different perspectives and insights. You should also keep learning and updating your knowledge and skills in your field and industry. To improve your decision-making skills, you can use tools such as coaching, training, or self-development.
Sometimes the best decision is the one you don't make today. Embrace the power of the pause. Don't rush into every choice, no matter how urgent it feels. Schedule "decision deadlines" for yourself. Give yourself time to gather information, sleep on it (literally!), and revisit the options with fresh eyes. Tools like online decision matrices can help you weigh pros and cons objectively. This pause allows for calmer, more calculated decision-making. Imagine facing a difficult marketing campaign decision. By giving yourself a dedicated timeframe to analyze data, consider alternatives, and potentially even seek external input, you're far less likely to make a rash choice you might regret later.
Decisions, many of us do in parts- I typically qualify them on indulgence criticality i.e. - is it a decision that needs our thought( these are the ones you are better not taking or outright delegating) , if it qualifies as ‘ my decision bucket’ then filter them on time criticality ( how quickly to decide) , business criticality ( how big is the impact), are their any prereq safeguards needed etc. Unless you’re stopping a fire- never hurry a decision. Give yourself a bit time, at times you would wake up wiser on same topic Also speak to well wishers who know the subject. Do not forget to bounce-off baiters too, to cover all aspects. And once decided , don’t back out. Best bet for a successful decision is when you commit all guns!
In my experience, the best way to improve the skill of making decisions is to start with being action oriented, results driven and being vulnerable and open to being wrong. If you have built a strong sphere of influence around you, you have the ability to converse with others, discuss the decisions you have made, listen to advice and thoughts about what worked, what didn’t and learn to adapt. If you get caught up in the paralysis by analysis situation, you are not learning anything you. Once we accept that we can improve each time we make decisions, we will make them and we will get better each time.
In my experience, enhancing decision-making requires a strategic slowing down. Don't allow anyone to rush you if the decision can wait. In that time reflecting on past decisions is key, history is such a rich source of learning, don't waste it. The internet is full of decision making models with options such as SWOT, decision trees, or simple pros and cons lists. Find the one that suits each decision. Most importantly, after making a decision, take a moment to be quiet & still, and feel the decision's impact. So many of us reflect on bad decisions of the past and realise that it felt wrong from the start. We should never overlook the 'gut feel'; it's what distinguishes great business leaders from average entrepreneurs.
Not every decision leads to positive outcomes, and recognizing the need for improvement is the first step toward becoming a more effective decision-maker. Begin by reflecting on past decisions, particularly those that did not yield the expected results. Understanding the context and consequences of these decisions is crucial. This evaluation will provide a clear starting point for improvement. Once the evaluation is complete, identify the gaps in your decision-making process. This could involve recognizing emotional biases, a lack of information, or flawed reasoning that led to suboptimal decisions.
Decision making for me a combination of few aspects: - 60% Data driven - 20% reflection and thinking - 10% rethinking and sleeping over the decision to be taken - 10% Gut feel
Entrepreneurship can be lonely. There are so many decisions to be made. Surrounding yourself with a group of like-minded peers from different industries and experiences will enhance your decision making skills. Instead of just limiting yourself to your own perspectives, seek out the wisdom of others on a regular basis. Peer advisors will augment your knowledge and enhance your understanding.
One valuable insight to add is the importance of embracing failure as a learning opportunity. In the journey of decision-making and problem-solving, setbacks and mistakes are inevitable. However, viewing these moments as opportunities for growth and improvement can lead to innovation and resilience. By fostering a culture that encourages experimentation and learning from failures, individuals and organizations can adapt more effectively to challenges and ultimately achieve greater success.
How I make decisions: 1. I remind myself to apply the visionary mindset to my decision making. I visualize my outcomes and the impact on my business, this helps me align my true north. 2. I align my vision with my values. This not only helps me make good decisions but right decisions. This alignment brings me closer to achieving both my personal fulfillment and business aspirations. 3. I take to heart the “learn, launch, and live” framework from my book Woman Act Now. I learn by gathering all the necessary ??, leaning into the wisdom of my mentors. I launch & take decisive action. I live by the outcomes of my decisions. If I fail, it’s simply feedback to learn, launch ?? and repeat until I succeed.
As an entrepreneur, I need to take responsibility for my decisions, as these will have a direct bearing on my business. My ability to look beyond the obvious, keep focus on the objectives and give little room for chance can certainly go a long way in improving my decision making as an entrepreneur.