An average adult human makes 35,000 decisions per day. Many people believe that every decision can be made differently and that the solution to a problem will vary. This is false. It is not true. Decision making is a complex process that requires logic and a step by step approach.
The business decision-making process can be a very effective way to make informed and well-thought-out decisions that will help you achieve your business goals. Without realising it, you may use any or all of the steps in the decision making process every day. The process can greatly improve your decision-making abilities and effectiveness.
Here are seven steps to help you make a decision.
Step 1: Identify the decision that needs to be made
Identifying the problem is the first step in finding a solution. This is the most important step of the process. Consider this: Your marketing strategy has been updated several times, but sales remain low. While it is easy to conclude that low sales are the problem you need to dig deeper. It is important to understand why sales are low.
There are many sources of problems, but you can narrow them down to these:
You have new opportunities that will require you to improve your offerings in order to stay ahead
New competition and new offerings from existing rivals could pose a threat
Digressions from the existing plan
Unpredictable events can have an impact on your business
Problems are situations or circumstances that are not like yours. They must be dealt with quickly to preserve your competitive edge. It is easy to achieve your goals if you can clearly define the nature of the decision and the problem. Once you have identified the decision to make, you will be ready to take the next step.
Step 2: Gather pertinent information
You need to ask the right questions to find the right answers. Your sales team might believe that you are losing sales due to inexperience, but your competitor could have launched a better product.
To diagnose a problem and reach the right conclusion, it is important to gather as much information possible. You must consider all decisions made within and outside the company, as well as those that were not made. You can ask these questions:
Is there evidence of a problem?
Where and when does the problem appear?
What factors, processes and people are most closely associated with the problem?
How important and relevant is the issue to your short-term goals and long-term objectives?
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The most important thing to do in this step is