If there is one sin about decision making that I see committed over and over again by business leaders, it comes in the form of “omission” – you just put off the decision. Most of the time, this is because leaders are waiting to make the “perfect” decision. Well … like in the game of horseshoes, close is good enough for most decisions – if you are wrong, you fail faster and adjust! Keep making decisions and you’ll throw more ringers.
Okay, so how can you make faster decisions? When you look at the chart to the right, you see that as a decision gets more complex and/or more imporant, you move from using instinct (simple decisions), to judgement (experiences, deeper knowledge), to perspective (input from others). So, not every decision is the same. Understanding this clearly will help you immediately use the right tool(s) to make decisions more quickly and with greater confidence.
Think about buying a house… Your instinct kicks in with basic curb appeal – you know you like it or don’t. Then you start using your judgement – is this within my (our) budget, what about the schools?, how good/bad is the commute to work?, etc. If you get serious you want perspective – you start examining the comparable in the market, asking your banker or financial advisor about the best mortgage and even hire a contractor/inspector to provider an inspection for due diligence.
How about business decisions you may face? Some example might be:
- Hiring the right person – using your own instinct and judgement will narrow the field – perspective of others will increase your ability to hire well.
- Firing an employee that you instinctually know is not a cultural fit or negatively impacting your organization – go with your isntinct and act quickly to spare your orgnization.
- Adding/budgeting for staff as you grow – you instinct will start nagging you when you and others feel strained to manage growth. Use your judgement to evaluate where a new position can have the most impact in keeping pace with growth. Make the decision quickly to avoid burnout or loss in quality and productivity
- Decision on how to grow revenues – instinct may be a liability if left unchecked with actual perspective from customer perspective, lost prospect perspective, judgements based on competitive data, sales data, opportunity for those involved to provide perspective, and even outside perspective from neutral, but knowledgable advisors.
There is no perfect decision. You cannot treat every decision as one where you need to wait until you “know” the perfect answer. What you can do is evaluate which of these tools you should apply to the decision – your gut instincts, your judgement, or perspective from others on the team or from the outside – and then make a decision! Make decisions and you will move your business forward. Delay decisions and you will cost your company time and money.
