Tips for Business Leaders to Boost Their Decision Making

Executive leadership’s primary responsibility is to make strategic decisions. Yet, research shows that many executives continue to use their extraordinary strategic thinking abilities to make ‘managerial’ choices that preserve the present rather than forge the future.

Globally, we must make important decisions about energy resources, and we can observe instances of both future-focused and “business as usual” decisions at the governmental level.

Making wise decisions does not always result from sound strategic thinking. Therefore, how can we maximise wise decisions in a time of uncertainty? Read on to find excellent future-focused business strategies that can help improve your decision-making.

Understand What Goes into Effective Decision-Making

Although your company may utilise particular decision-making models, a rational decision-making process will often involve the following:

  • Identifying and outlining the issue or opportunity
  • Finding information: What do we already know?
  • Creating a purpose or objective: what do you hope to accomplish?
  • Generating suggestions or ideas
  • Weighing the benefits and drawbacks of different options
  • Making the greatest choice
  • Monitoring and implementing the solution

Market forces, financial markets, public sentiment, politics, and governmental laws are a few examples of environmental influences. Unconscious bias, risk profile, and other psychological factors are personal factors.

Learn More about Yourself and Your Team

Do you understand how you make decisions? The Decision Style Inventory identifies four decision styles. These include analytical, directive, behavioural, and conceptual. Van der Laan (2008) contends that conceptual backed by analytical, with its predisposition toward creative tolerance for ambiguity and complexity, as well as problem-solving, supported by critical thinking, is the most strategic decision style.

You can look at thinking patterns, risk profiles, and psychological profiles using a variety of inventories. While you should not read too much into them, they do aid in determining whether the people in the room are convergent thinkers, risk-averse individuals, or ditherers.

Challenge Your Thoughts

This is a wise thing to do anytime, especially when making strategic judgements. Challenge the use of fallacious reasoning, such as the assertion that the housing market is in a bubble; hence it must explode soon. It is unlikely that the housing market is in a bubble.

Challenge the overuse of “rule of thumb” thinking or heuristics. Confront bias, whether it is conscious or not. Are specific cultural or gendered groups’ interests being disregarded?

Frequently Asked Questions

Still looking for more info? We’ve compiled a list of FAQs – Check them out.

1. What Are The Steps For Decision-Making?

Ideally, you should start your business decision-making process with a detailed investigation of the situation. Then, it is best to create a constructive atmosphere for generating excellent alternatives. You should explore the available options before settling on a final solution. Then, move on to evaluating your plan, communicating your decision to your team, and putting the plan/ decision into action.

2. How Can Executive Leaders Improve Their Decision-Making Abilities?

Some simple and effective ways of improving your executive decision-making abilities include collecting data to validate accuracy, combining intuition with experience, assessing proposals and ideas, and making prompt decisions.