Make business decisions: key methods for choosing well.

Do you think being in charge is easy? Not always — power comes with its challenges, and decision-making in a company is one of the most critical moments that leaders must handle successfully for everyone’s benefit. Of course, there is always a certain risk. That’s why experts in business management and specialists across all areas have developed different methods to solve situations of any kind.

Whether you’ve already reached your ideal position or you want to keep climbing the corporate ladder to test your full potential, you should read this post, where we’ll talk about the process of decision-making in business.

Neither fear is a weakness nor failure the end when it comes to decision-making in business

It seems that, to run a company or department, one shouldn’t fear failure or criticism. But as you know, that’s not true — we all deal with both obstacles throughout our careers. Many work hard day after day to reach a high position, but once they get there, they feel overwhelmed by the responsibilities, the hardest of which lies in making decisions.

Fear will always be there, and failure will always be a possibility, but we must not let it paralyze us. In fact, if we channel them correctly, these warning signals that our brain sends can be wonderful triggers to activate divergent thinking. When we sense a threat, in order to avoid it and come out successfully, we can detect more creative solutions that perhaps we wouldn’t have thought of if we had chosen the easy path. This idea is perfectly summed up by Chinese business philosophy: where there is crisis, there is also opportunity.

So then, how can you handle pressure without losing your mental health along the way? It’s not easy, but it can be done with a lot of emotional intelligence and other skills that come with experience.

Why is decision-making important in a company and what types exist?

This question may sound obvious, but did you know that even the most powerful companies have stopped being competitive for not making decisions in time? Depending on an organization’s purpose, it’s essential not only to make choices but also to ask the right questions to stay aligned with the main goal.

Moreover, not all decisions have the same nature or weight:

• Directive: made at executive and management levels, they affect the entire organization.
• Operational: essential for day-to-day operations, these must be made quickly so that productivity isn’t hindered.
• Strategic: focused on short- and long-term goals and requiring analysis and planning.
• Tactical: require immediate attention and are made when unexpected problems arise.

Create a decision matrix to guide the process

A decision matrix is a tool used to evaluate different options and variables. It helps visualize the overall situation and how it might change. Here are the steps to design your company’s decision matrix:

1. Analyze the current situation, context, threats, and initial opportunities.
2. Identify the most important factors to consider.
3. Transfer the information into a grid that also includes: financial terms, needs, available resources, resources needed, obstacles, and possible solutions.

7 Examples of decision-making methods in business to help you in any crossroads

Ideally, before you commit to a final decision, you should take a step back and look at the context from a distance. That’s why the following business decision-making methods share one thing in common: they lay all the cards out on the table. Let’s look at some of them:

Cost-Benefit Analysis: this is the most traditional approach and the basis of most business solutions. It involves evaluating and comparing the costs and benefits associated with different options before making a decision. The goal is to identify the choice that maximizes benefits and minimizes costs for the company.

Data-Driven Decision-Making: this method involves collecting and analyzing relevant data to support decision-making. Quantitative and qualitative data are used to assess different options and choose the most suitable one.

Delphi Method: this method gathers opinions and insights from experts on a specific topic anonymously. The responses are then synthesized to reach a consensus or make a decision based on expert input.

Brainstorming Method: you’ve probably heard of this one. A group of people come together to generate ideas and alternatives in a creative session. Creativity is encouraged, and multiple viewpoints are collected before making a final decision.

Consensus Decision-Making: this involves reaching unanimous agreement among team members or stakeholders involved in the decision. The goal is to avoid conflict and ensure that all parties agree with the final decision.

SWOT Analysis (Strengths, Weaknesses, Opportunities, Threats): with this technique, you evaluate a company’s strengths, weaknesses, opportunities, and threats before making a strategic decision. The goal is to leverage strengths and opportunities while mitigating weaknesses and threats.

Risk Assessment Method: this method analyzes and evaluates potential risks associated with each option before making a decision. The aim is to minimize risks and consider mitigation strategies before choosing the most appropriate alternative.

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