Use These 3 Tips To Make Your Next Critical Decision

I am a Libra; my astrological sign is the balancing scales. I don’t, however, believe in astrology.Weighing all the factors when making critical decisions

On the other hand, I do tend to see both sides of an argument.

Which can make decision-making interesting for me. So, I read articles about it.

I saw one the other day which featured Ram Charan¹  who co-wrote “Execution”, one of my favourite books on strategy.

He’s been working with accomplished business leaders for almost 30 years, watching them making some really difficult decisions.

Charan says they do 3 things when faced with a critical decision.

  1. First they focus on the end goal. They are very clear and specific about what has to be achieved. There is no ambiguity in their thinking.
  2. They consider all of the options or alternatives. They do not hesitate to think “outside the box” using their imagination and creativity, but temper the results with pragmatism.
  3. Then they go and get different points of view. Why, because critical decisions often deal with complex issues and the business world can move very quickly now. Getting diverse input helps them see as many aspects of a situation as possible.

Having done that, they use their judgment to focus on the 2 or 3 most important factors affecting the decision. Finally they think through the consequences of their decision. And come up with contingency plans to deal with them.

Of course they do these things simultaneously and complete the process relatively quickly.

The important point is that none of these steps are beyond the ability of the average business owner. A trait that entrepreneurs have to guard against, however, is the temptation to skip the third step – even when they’ve grown their companies to a point where they’ve hired a management team.

And, by the way, when I think I’ve looked at both sides of an argument for long enough, I recall advice I was given many, many years ago. A good decision is commendable; a bad decision is regrettable; but no decision at all is unforgivable.

Then I just do it.

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¹ “What the Best Decision Makers Do”, HBR Blog Network, 24 Oct 13
http://blogs.hbr.org/2013/10/what-the-best-decision-makers-do/

 

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Jim Stewart is the founding Partner at ProfitPATH. He has been working with business owners for over 16 years to increase profits and improve the value of their companies. LinkedIn

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Tags: alternatives, business owners, decision-making, decisions, execution, focus, goals, input, Jim Stewart, judgement, Leadership, Planning, Process, ProfitPATH, results, strategy

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