How to make business decisions with the highest probability of success

Do you think being in charge is easy? Not always, power has its difficulties and decision-making in the company is one of the most critical moments that managers must successfully assume for the good of all. Of course, there is always a risk, which is why experts in business management, and specialists in all its areas, have been developing different types of methods to resolve any kind of situation.

Whether you have already reached your ideal position, or if you want to continue climbing the business hierarchy to test your full potential, you should read this post in which we will talk about the decision-making process in the company.

Neither fear is a weakness nor is failure the end when we talk about decision-making in the company

It seems that, in order to run a company or department, you shouldn’t be afraid of failure, or what people will say, but, as you know, that’s not true, we all deal with both obstacles throughout our professional careers. Many work hard day after day to occupy a high position, but when they reach it, they find themselves overwhelmed with responsibilities, the greatest difficulty of which lies in decision-making.

Fear will always be there, and failure will always be a possibility, but we must not let it paralyze us. In fact, if we orient them correctly, these alarm messages that our brain sends us can be wonderful for activating divergent thinking . When we feel a threat, in order to avoid it and succeed, we are capable of detecting other more creative solutions that, perhaps, we would have thought of by choosing the easy path. This is summed up very well by the Chinese business philosophy: where there is a crisis, there is also an opportunity.

So how do you handle the pressure without losing your sanity along the way? It is not easy, but it can be done with a lot of emotional intelligence and other skills that will be acquired with experience.

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

This question seems a bit obvious, but did you know that very powerful companies have stopped being competitive for not making decisions on time? Depending on the purpose to which an organization is directed, it will be essential not only to choose but to ask the right questions so as not to deviate from the central axis.

Furthermore, not all decisions have the same nature and are equal:

• Directives: they are taken at the executive and management levels, so they affect the entire entity.
• Operations: they are very necessary for day-to-day operations, they must be executed relatively quickly so that productivity is not hindered.
• Strategic: they are those that visualize a short-long term objective and that require analysis and strategy.
• Tactics: they are those that require immediate attention, they are taken when an unexpected problem arises.

Make a decision matrix to guide the process

A decision matrix is ​​a tool that evaluates the different options and variables. It serves to visualize the whole of the situation and how it can fluctuate. These are the steps to follow to design your decision matrix in the company:

1. Analyze the current situation, context threats and first opportunities.
2. Identify the most important factors to consider.
3. Pass the information to a grid which, in addition, include: economic terms, needs, available resources, resources that will be needed, obstacles and different solutions.

7 Examples of methods for making decisions in the company that will help you at any crossroads

The best thing is that before opting for a final decision, you can abstract yourself and visualize the context from afar, for this reason, the following methods for decision-making in organizations have in common that they put all the cards on the table and face up. Let’s see some of them:

Cost-Benefit Analysis: this is the most traditional and, in the end, on which the vast majority of business solutions are based. It refers to evaluating and comparing the costs and benefits associated with different options before making a decision. The objective is to identify the option that maximizes the benefits and minimizes the costs for the company.

Data-Driven Decision-Making: Relevant information is collected and analyzed to support decision-making. Quantitative and qualitative data are used to evaluate different options and select the most appropriate one.

Delphi Method: This method involves collecting opinions and perspectives from experts on a specific topic anonymously. Then, the responses are synthesized and an attempt is made to reach a consensus or make a decision based on the information provided by the experts.

Brainstorming method: surely you have already heard of it. A group of people meets to generate ideas and alternatives in a brainstorming environment. Creativity is encouraged and different points of view are collected before making a final decision.

Decision Making by Consensus: consists of reaching a unanimous agreement between the team members or the stakeholders involved in the decision. The idea is to avoid conflicts and ensure that all parties agree with the decision made.

SWOT Analysis (Weaknesses, Threats, Strengths, Opportunities): using this technique, we assess the company’s weaknesses, threats, strengths and opportunities before making a strategic decision. It seeks to take advantage of strengths and opportunities and mitigate weaknesses and threats.

Risk Assessment Method: the possible risks associated with each option are analyzed and evaluated before making a decision. It is intended to minimize risks and consider mitigation strategies before selecting the most appropriate option.

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