Decision Making Process in Business
In business, as to where your company is heading to depend on the decision making skills of the key persons in the business. Before you may able to solve a problem, decision-making must be done first. Take note that decision-making is just part of the problem solving as a whole. There are techniques and sequence of processes that may help to improve decision-making skills and the quality of its product.
The more you develop your skills in decision-making the more competent and effective you will become.
What is a decision making process? Decision making simply put is a mental activity that can be done individually or by a group of people. It produces results which maybe a course of action or ideas.What decision we make or even did not make today will definitely project our future.
It is very important that decisions must be done timely and accurately as possible. To know the key processes in decision-making helps a lot. These processes may serve as framework as you go through with your decision-making.
You can change the word problem into opportunity as it may apply
- Determine the problem or the issue you need to make decision to. The better you can define the problem/opportunity, the higher the possibility to make a quality decision which is considered to be the output. Using the 5Whys (Who, What, Where, When, Why) will help you determine the underlying opportunity. Make it specific as possible.
- Gather Useful Data – To gather data from involved persons will make your decision more comprehensive to the whole team. Gathering diverse ideas from your team members will help you dig deeper to the issue. Brainstorming is one of the best ways to gather useful ideas from your team members. Encourage all the stakeholders to give their opinion, open the table for discussion as this will help you gather the necessary data for the decision-making process.
- Develop Alternatives – try to generate more than one possible solution to the problem. Do not stick to one possible solution only to avoid monopoly decision-making. Accept alternatives given by your co-stakeholders as this will lead you to make the best solution to the issue. Let their ideas be heard. Do brainstorming to get ideas. Using only one alternative will hinder you to choose the best solution as there is no choices to make.
- Know the pros and cons of alternatives – pros (in favor of) and cons (in opposition of). Make a list and table all the alternatives given for easily view of its pros and cons. It will be easy for you to eliminate one by one those alternatives that have more cons than pros leaving only the best alternative among the list.
- Finalize your decision – after doing all the necessary steps of gathering all the data and evaluation of each alternative, then immediately make your decision. Select the best solution with lesser cons.
- Convey your decision then apply it – once you finalized your thought and chosen the best solution, then it’s time to explain your decision with your co-stakeholder and those who are going be affected by this decision. Telling them your decision and explaining to them the advantages and some projected risks will help you make them support your decision.
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