A good decision adds significant value to a business. Making decisions is a crucial part of the manager’s job. Every day, business leaders and managers make hundreds of decisions. A good strategic decision has an impact on the company’s overall success. Strategic steps, intuitive thinking, far-sightedness, and critically assessing the circumstance are all part of good decision-making skills that will lead to the best possible outcome.
A good decision-maker will eventually become a good manager who leads the company strategically. A choice is often made using one or more decision-making procedures. What counts is how well it is communicated.
The top management decides for the future of the organization. A choice can either lead the company to the desired position or exacerbate the situation. The financial results, as well as the company’s general growth, are considerations in decision-making.
The 5 Decision-Making Approaches for Managers are listed below to help you figure out which decision-making techniques are ideal for a given situation. It is not required to employ only one technique at a time. You can use one or more approaches to help you make the best decision possible.
Let’s look at each decision-making technique one by one. By the end of this article, I will also share which decision-making techniques worked for me.
1. Process-oriented approach
This method entails a step-by-step procedure that will assist you in achieving your objectives. Whenever you are in a position to make any decision you must first analyze the situation. To make the best decision, keep the issue as accurate as possible. Form a team to correctly identify a problem and manage the group dynamic while analyzing. You can create a viable solution using this method.
I utilized this technique several times in situations where the problem was minor but troublesome. The results of a process-driven approach are not always instantaneous. It takes time, but it will eventually yield the intended result.
2. Collaborative effort
As a manager, one of the most crucial elements to consider is including your team in the decision. I believe that involving a team produces greater results since everyone on the team has a distinct role to fulfill. They are all acutely aware of the ongoing issue and may likely be aware of a better solution. We can come up with a feasible and successful solution if every team member is involved in the decision-making process.
When I need to make a strategic choice, I consult with my team as much as I engage with senior management since they can better articulate the situation. Teamwork brings together a wealth of expertise and experience.
3. Critical analysis
Every strategic or non-strategic decision requires a significant amount of critical analysis time. If you have the power to make decisions for your company, don’t forget to think critically. It entails acquiring all relevant data, processing it, and carefully formulating a solution. You must carefully create a solution based on the three key elements of critical analysis, which are given below:
Logic– Observe the cause and effect of your decision. It provides clarity for the right predictions of your future decisions.
Truth– Decision-making requires unbiased and rational thinking away from any emotions and influence. The decision made must be on the truth and right facts.
Alternatives– you can refer to the alternatives only if they are viable and rightly fit into a certain situation.
Whenever I have to make a decision, I make every effort to make it as crucial as possible in order to avoid any potential failure. You will have a better understanding of your current situation and be able to predict future plans if you keep these critical aspects in mind. When making a decision, I prefer to use critical thinking. To date, it has helped me in achieving the intended result. While making any decision, I recommend thinking critically based on truth and facts.
4. Encourage creativity
When making a choice, a manager should always provide room for creativity. If the decision is taken explicitly within an organization it has a lot to do with creativity You could, for example, organize some creative initiatives to motivate staff or involve them in a group activity. Aside from that, when making any strategic decision, a creative factor must be considered. I feel that incorporating creative thinking into decision-making produces far superior results.
5. Revise the objective and goals of the decision
A decision is made totally on the basis of its goal. When making a decision, you must keep in mind the goal and the direction you will take as a result of your decision. Your selection will be influenced if the purpose is clear and precise. When there is a change in the general organizational structure or plan, this revision of goals and objectives is required.
To summarise what has been said so far, these management techniques help in the development of a viable strategic decision. I prefer to work as part of a collaborative team and keep key factors in mind. It can, in my opinion, lead you to the desired result.