5 Important Steps To Better Decision-Making

Inspired to create change? Ikabo Incubator provides you with the support you need to make faster, smarter decisions.

As business leaders face an era of unprecedented change, the decision-making process can seem daunting. But good leaders are skilled problem-solvers, and developing strategies to ensure effective decision-making can maximise organisational success.

So where to begin? These simple steps are a great place to start…

1. Develop clear goals and prioritise them

If there are too many objectives related to a specific decision, weighing them all up can hinder the process. Choose two or three of your goals that will achieve the most impact, and think about which stakeholders you need to please most, keeping these top-of-mind for the final outcome.

2. Crowdsource with employees to model and stretch ideas

Giving employees a voice can lead to more effective business decisions while also enhancing their experience and happiness at work. Talent can lie hidden in your organisation, and by creating a platform for employees to give input you will tap into diverse expertise and talent, and also strengthen the bond with your team. One way to do this is through crowdsourcing innovation tools.

3. Make efforts to reduce bias in the process

Although decision-makers often look to reduce bias in other employees, they don’t always think to reduce bias in themselves. In fact, a McKinsey study found that management often overlooked their bias, and companies that actively reduced it had a seven percent increase in return on investment. Economics Nobel Prize winner Daniel Kahneman has also done extensive research in bias, finding that teams that have ‘fallen in love’ with a plan can often unconsciously reject contradictory evidence.

4. Inform yourself of the risks involved

Research shows that for the best results, risks should be examined not just in relation to the decision at hand, but other decisions that are occurring at the same time in the business. Looking at similar past situations can be beneficial, as well as looking at the current data you have. Think of the absolute worst-case scenario for each particular option, and how you would deal with the consequences. By crowdsourcing ideas within your organisation, you automatically reduce risk.

5. Make the decision quickly and confidently

Speedy decision-making can certainly be an advantage for any business in a competitive market, but you should always look before you leap. Some low-risk decisions can be solved in a meeting, whereas higher risk decisions may require more deliberation. The key is to define your ultimate objective, and find the best possible solution to that goal, even if it isn’t perfect – because timeliness is often more important.

Inspired to create change? Ikabo Incubator provides you with the support you need to make faster, smarter decisions.