Everything that happens to a business is a result of the decisions that the senior members of the business took. If you make the right decisions, then you’ll be putting your business in a good position for future success. If you make the wrong decisions, then the future will be uncertain — and it may even result in the eventual failure of the business.
There is, of course, no tried and tested method for ensuring that you always make the right decision. Even the biggest companies in the world get it wrong from time to time. However, there are things you can do that’ll increase your chances of making the right decision. We’ll explore some of the steps you can take in this blog.
What’s Your Goal?
You can’t make a positive decision if you don’t know what it is that you’re trying to achieve. You might end up finding success, but you’ll be more lucky than anything. The key to making the right decision is to have a sense of what your decision will lead to. You need to have a goal, one that’s as specific as possible, and also achievable. It’s best to limit the number of stakeholders, otherwise, things can get pretty complicated, pretty quickly.
Get Various Inputs
There’s the idea that the swashbuckling, magnetic entrepreneur has all the answers. But actually, companies that put all their trust in one leader tend to do worse than other businesses where there are multiple players. While the decision might ultimately be yours, it’s worthwhile getting as many different views as possible. If the views come from people that you trust, then eventually the right path will begin to present itself. The bottom line is that it’s worth rejecting the solitary decision-making process.
Make Data-Driven Decisions
You’ll find it much easier to make the right decision if you have as much information as possible. And in this day and age, that’s easier to obtain than you might think. After all, there’s a lot of data out there — it’s just up to you to identify that data and then incorporate it into your decision-making process. You can get this information with the help of data platforms, which will pull data and extract insights that you can use to make your decisions. With the right information, you’ll be in a stronger position to choose the right path.
You should have confidence in the decision that you take. But it’s generally not wise to be overly committed to it. If it later transpired that it would make sense to take another course, then it’s recommended that you do so. Take a look at some of the world’s leading companies, and you’ll find that many of them have changed course after they determined that their original idea did not work as well as they thought it would. A lot of damage can be caused if you fall for the sunk cost fallacy — instead, just recognize it was the wrong move and take another decision.