7 Steps of the Decision-Making Process
Decision-makers must understand each part of the step-by-step process that goes into making informed decisions.
Here are seven steps to help you make informed decisions:
1. Identify the problem
The first step of effective decision-making is to correctly identify the problem that must be solved.
This might sound simple but it’s impossible to begin working on a plan of action when you don’t fully comprehend the question you are trying to answer.
Bad decisions are often made when the root of the problem is incorrectly identified, so make sure to specifically and accurately spot the decision that must be made.
2. Collect data and information
After you’ve accurately identified the decision that must be made, it’s time to enter the information-gathering phase.
Good decision-making requires you to be as informed as possible and tackle the problem from all available angles.?
Outside sources like market research and studies may serve as relevant information during this phase of the decision process as well.
Gathering enough information will help you analyze all possible outcomes and make the best decision.
3. Brainstorm all possible alternatives?
Use the information you gathered in the previous step to generate as many solutions as you can, helping to identify the best alternatives.
Don’t worry if any of these will ultimately lead to the right decision quite yet.
Important decisions often require outside-the-box thinking.
So feel free to be as creative as possible during this part of the process.
4. Weigh the alternatives
When you make tough decisions there are different approaches to examine your options.
Get out a piece of paper and make a list of pros and cons for each one.
Make a decision tree or flowchart, looking for any red flags that may arise along the way.
Compare each of your potential alternatives against the status quo to make sure there’s real potential to improve the future of your business or company.
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Beware of analysis paralysis—spending so much time overthinking that you ignore your gut instincts and never take action.
5. Take your pick
Once you’ve collected all relevant information and analyzed the alternatives, it’s time to make a hard decision.
If you’ve followed a thorough decision-making model, hopefully, this final decision isn’t actually too difficult.
However, it can sometimes be difficult to pull the trigger, even when a rational decision is staring you in the face.
If you find yourself plagued with indecision or dwelling on the worst-case scenario, you may just have to trust your gut.
6. Enact a plan
After completing your individual decision-making process, you’ll need to develop a plan to put that decision into action.
Now you get to play the role of the motivator, encouraging your team to implement your plan.
7. Review the decision
When examining your own decisions remain objective and not fall prey to confirmation bias.
Did your decision achieve the desired results?
If you made the wrong decision, review each step of your decision-making process to see what went wrong.
Did you gather enough information?
Are there ongoing processes that need to be changed in order to improve the results?
Poor decisions are not the end of the world, and it’s important that you learn from your mistakes so that you’re ready to tackle the big decisions that come in the future.
That's a wrap.
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