Making Decisions the Right Way

In the business world, making decisions is an art as much as it is a science. Often, decision-making can seem daunting, leading many to postpone crucial choices. This paralysis can stem from a fear of making the wrong choice, an overload of information, or even the lack of it.

To unblock this paralysis, it’s essential to recognize that not making a decision is, in itself, a decision. Breaking down the process into smaller steps, seeking advice, and setting deadlines can help move things forward.

In many cases where paralysis has set in, the solution is as simple as ‘Do Something’.

Do Something

Doing something means that we are getting data about a decision. What would happen if rather than one big decision was made, a series of smaller choices were taken frequently and often?

You would be able to review your choices frequently after gathering information about your chosen direction, rather than second-guess what an outcome may be trying to limit risk.

If the wrong choice has been made you would be able to change direction relatively cheaply and in a short time frame. In reality, most of the time, the changes will be small in direction, rather than complete turnarounds.

Breaking down big decisions into series of small ones, also reduces the risks ‘no-decision inertia’ creates and the risk of not being able to course-correct after making one big decision.

Modes of Decision?Making

It is also important to understand the two main modes of decision making:

• Rational decision making
• Intuitive decision making

Rational decision making relies on analysis of data, facts and options. Whereas intuitive decision making relies on a gut feel and experience. Both modes have their places.

Problems with a higher level of uncertainty and novelty tend to need an intuitive approach. Trying to find all the relevant data will take you forever and not really help. You probably need some data an analysis but must realise that you will quickly reach the point where you know enough to make a rational decision (just look harder at what’s in front of you) or accepting you need to make an instinctive or intuitive decision.

It is a good idea to help those making decision to understand a range of cognitive biases (e.g. the Recency Bias) that can negatively impact decision making?—?and intuitive decision making in particular.

Sources of Indecision

There are several factors within an organisation that can lead to greater paralysis.

1. Lack of Clear Vision or Goals: Without a clear direction or set objectives, it can be challenging to make decisions that align with the company’s long-term strategy.
2. Information Overload: Too much information can be just as problematic as too little. Companies might struggle to sift through data and identify what’s truly relevant.
3. Fear of Risk: Decision-makers might be afraid of making the wrong choice, leading to indecision or overly cautious decisions.
4. Internal Politics: Conflicts and power struggles within the organization can hinder decision-making processes.
5. Lack of Expertise: Sometimes, companies don’t have the necessary expertise or knowledge to make informed decisions and are afraid to bring in the right expertise.
6. Poor Communication: If there’s a breakdown in communication within the company, it can lead to misunderstandings and delays in decision-making.
7. Resistance to Change: Companies that are resistant to change may struggle to make decisions that involve new strategies or innovations.

Unlocking Decisions

There are several ways you can improve the speed and effectiveness of decision-making:

1. Establish Clear Goals and Priorities: Ensure that everyone understands the company’s vision and objectives. This alignment helps in making decisions that are consistent with the overall strategy.
2. Empower Employees: Delegate decision-making authority to employees at various levels. This not only speeds up the process but also encourages a sense of ownership and accountability.
3. Improve Communication: Foster open and transparent communication channels. Regular meetings, updates, and feedback loops can help keep everyone informed and aligned.
4. Leverage Data and Analytics: Use data-driven insights to inform decisions. Implementing tools and systems that provide real-time data can help in making more informed and timely decisions.
5. Simplify Processes: Streamline decision-making processes by reducing unnecessary steps and bureaucracy. Clear guidelines and frameworks can help in making quicker decisions.
6. Encourage a Culture of Innovation: Promote a culture where new ideas and approaches are welcomed. This can lead to more creative and effective solutions.
7. Provide Training and Development: Invest in training programs that enhance decision-making skills. This can include critical thinking, problem-solving, and leadership training.
8. Set Deadlines: Establish clear timelines for decision-making to avoid procrastination and ensure that decisions are made in a timely manner.
9. Use Technology: Implement decision-support tools and technologies that can help in analyzing options and predicting outcomes.
10. Foster Collaboration: Encourage teamwork and collaboration across departments. Diverse perspectives can lead to more comprehensive and effective decisions.

Do not underestimate how hard this can be if the inability to make a decision has become embedded in your organisation. However, if you want to make this change don’t be deterred and use the tips above to start building a decision-making culture that will become a powerful tool for personal, professional and organisational growth.