EFFECTIVE DECISION MAKING IN STARTING A BUSINESS

09 Jul 2019

EFFECTIVE DECISION MAKING IN STARTING A BUSINESS

Effective decision making in starting a business is as important as the growth of the business. Decision making is the key skill in the workplace and very important for your business to be effective and creative. It is also important every day in your personal life. This is a critical skill for effective management and leadership though some people are just not suitable for leadership roles because of their lack of ability to make decisions.

What is an Effective Decision?

Like a popular saying, “Action speaks louder than voice” this means when you put your decision to work your business becomes effective. An effective and good decision in business is one that is based on a process being informed, with all the rich implications of the available conditions or terms and make a decision that benefits all parties involves.

Effective decisions result from a systematic process, with clearly defined elements, that is handled in a distinct sequence of steps’ growing number of areas, in your business. How do you make the best decision in Business?  Follow me on this.

A Systematic Approach for Making Effective Decisions to start a Business would include:

  • Creating a constructive environment for sane thoughts.
  • Investigate the situation in detail, to conquer.
  • Generate alternatives.
  • Explore your options carefully.
  • Select the best solution.
  • Evaluate your plan.
  • Communicate your decision, and take action.

What is decision making and how it is useful in business?

A decision can be defined as a course of action purposely chosen from a set of alternatives to achieve organizational or managerial objectives or goals. Decision making process is a continuous and indispensable component of managing any organization or business activities.

How can you improve decision making?

Using Rational Thinking

  • Gather information about the situation. Understand the factors involved in the problem or situation.
  • Avoid making impulsive or emotionally-charged decisions.
  • Give yourself time to thoughtfully make a decision.
  • Look at the situation in both the short-term and long-term.

Following these rules are step-by-step decision-making process that can help you make more deliberate, thoughtful decisions by organizing relevant information and dining alternatives, this approach increases the chances that you will choose the most satisfying alternative possible.

THERE ARE SEVEN (7) POINT FOCUS THAT GUIDES EFFECTIVE DECISION MAKING

  1. Identify the decision to be made.
  2. Gather relevant information.
  3. Identify alternatives.
  4. Weigh evidence.
  5. Choosing among alternatives
  6. Take action
  7. Review decision and consequences

You must realize that you need to make a decision, so try to clearly define the nature of the decision you must make. This first step is very important.

  1. GATHER RELEVANT INFORMATION: Collect some pertinent information before you make your decision. Get information that is needed in what you aspire for, look out for the best source of information, and how to get it. This is the step that involves both internal and external work which I s through online research and books.

  2. IDENTIFY THE ALTERNATIVES: As you collect information, you will probably identify several possible paths of action, or alternatives. You can also use your imaginative thought and additional information to construct new alternatives. At this point, you will list all possible and desirable alternatives you have hoped for.

  3. WEIGH THE EVIDENCE: Map out all your information and emotions to imagine what it would be like if you carried out each of the alternatives to the end. Evaluate to check if the need identified in Step 1 would be met or resolved through the use of each alternative. As you go through this difficult internal process, you’ll begin to identify certain alternatives that are favorable to see those that seem to have a higher potential for reaching your goal. Finally, place the alternatives in a priority order, based upon your own value system.

  4. CHOOSE AMONG ALTERNATIVES: Once you have weighed all the evidence, you are ready to select the alternative that seems to be the best one for you. You may even choose a combination of alternatives. Your choice in Step 5 may very likely be the same or similar to the alternative you placed at the top of your list at the end of Step 4.

  5. TAKE ACTION: You know you are ready to take some positive action, when all your alternative plays out provide positive results.

  6. REVIEW YOUR DECISION & ITS CONSEQUENCES: In this final step, consider the results of your decision and evaluate whether or not it has resolved the need you identified in Step 1. If the decision has not met the identified need, you may want to repeat certain steps of the process to make a new decision. For example, you might want to gather more details or somewhat different information or explore additional alternatives.
  7. With the right decision in place your business will flourish so you need to focus on the right decisions so as not to make the wrong impression when approaching the most crucial part which is running the business.

    Jephthah Rio Izegaegbe

    Digital Skills Trainer

    Facebook: @INVIEWMIND

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