Better Decision-Making

Better Decision-Making

All of us face decisions on a daily basis. Some are easy some more difficult. Most leaders are bombarded with problems and situations that require quick decisions.

Someone once said that a high school freshman could make 95% of the decisions business leaders face. The last 5% are why the leaders get paid the big bucks. Those hard decisions are what drive an organization toward its mission. 

T. Boone Pickens said, "Be willing to make decisions. That's the most important quality in a good leader. Don't fall victim to what I call the ready-aim-aim-aim syndrome. You must be willing to fire."

Decision-making is a process. If decisions are based solely on circumstances, decisions will change when circumstances change. If decisions are based solely on logical reasoning, decisions will change when new information is presented. If decisions are based solely on feelings, decisions will vary with emotions. Effective decision making must be rooted in steadfast foundations. Although "old fashioned" there are still absolutes. The questions then is, does the decision align with our core values.

To make good decisions there are five steps to follow.

First gather information. Good decisions are based on good information. We gather information by listening to those around us, by reading and studying. Many times the answers are right in front of you if you would only listen. A good decision-maker collects information, a valuable commodity for decision making.

Secondly, you need to keep a clear perspective. We all interpret the data we collect in different ways so it is important to keep our personal feelings, personal interests and personal popularity out of the process. The golden rule applies here, "Do unto others as you would have them do unto you".

The third step is to make your decision based on what is right. Rightness is weighed by its wisdom and morality rather than by the results. Here again your core values come into the process. Making the morally right decision does not guarantee that it will be effective, but your conscience will be clear.

The fourth step is to follow through. Before you make a decision you need to determine the costs involved. How much time will be required? What resources will be required? How much of my personal involvement is needed? Once you make the decision however you must follow through to completion.

The last step is to be ready for criticism. If you have made your decision on good information, kept your emotions out of it, made the morally right choice and followed through it will be easy to stand up to criticism. Charles Hole said, "Deliberate with caution, but act with decision, and yield with graciousness or oppose with firmness."

To help in this process there are some basic questions to ask yourself when facing those tough 5% decisions. First at its essence, what is the decision I am really facing? What is the bottom, bottom line? This will help you get to the root of the issue before you. Next ask yourself am I thinking about this situation with a clear head, or am I fatigued to the point that I should not be making a major decision? Many times if we get some rest or sleep on it, the problem doesn't seem nearly as difficult. Then ask yourself what would I expect each of my most respected advisors to favor in this situation? Sometimes this can change your perspective on the problem or situation. Thinking about the issue from another person's perspective can make your situation much more clear.

A very important question to consider would be, is this decision consistent with our values in the past, or does it mark a change in direction or standards? This gets back to our core values for the organization or yourself. Having these in writing will make many decisions easier for you and your team. These values should be well known by everyone in your organization. They should be reviewed often and become part of the culture. Personal values should also be written down in either a personal mission statement or values statement. These are things you build your life on and won't compromise.

Without core values your decision-making will be inconsistent and much more difficult. Something else to ask yourself is, will this decision help to maximize my (and our) key strengths? Is this building on a strength or gambling on a weakness? Many organizations don't know their strengths and weaknesses and therefore continue to fail in many areas. Sit down with your team or yourself and identify your strengths, weaknesses, threats and opportunities. This should be done annually or more often in rapidly growing or changing organizations.

Is this the best timing for carrying out this decision? If not, why? And when? Timing is extremely important in the decision making process. John Maxwell talks about timing in his book THE 21 IRREFUTABLE LAWS OF LEADERSHIP. He says, "the wrong action at the wrong time leads to disaster, the right action at the wrong time brings resistance, the wrong action at the right time is a mistake and the right action at the right time results in success."

Another question to ponder when facing a difficult decision would be is this the decision I would make if our budget was twice as large, half as large, five times as large or one-tenth as large? Is it the same decision I would make if we had twice as many staff members or half as many staff members? Sometimes if we take away these barriers the decision becomes much clearer.

And finally how does my family feel about this decision? How will it affect them? The people closest to you will usually be affected in some way when facing a difficult decision. Will this mean more time away from my family? Could this cause friction within my family?

These questions should help in the decision making process, however they are not the only questions to consider. Dr. Joyce Brother said that "Speed in making up one's mind is not an important element in successful choices. In fact, the snap decision is often not a decision at all, but a technique of avoidance. Though it created an illusion of command, a lightening choice may mean only that someone has snatched at the handiest alternative rather than come to grips with the real issues involved." Decision-making is a process, follow the process and good decisions will usually follow.