The Weight of the World: Effective Decision Making

Quick! Coffee or tea?

It’s likely this decision was easy. Based on what you like and the fact that there were only two options, most would react almost automatically. It’s coffee for me, by the way. As we all know, life’s full of complicated decisions. As a leader, making effective decisions on behalf of your company, employees, and customers can be much, much harder than deciding what tie to wear. These decisions can have the power to make or break your business and deeply effect people’s lives – not a responsibility to be taken lightly.

Here’s an Example

Let’s say that your company has a decrease in profits. After reviewing your financials, you make a snap decision to get rid of 50% of your staff to mitigate the loss. But what’s the ripple effect? You could fire employees who would have been the very ones capable of turning a company profit. Will it disrupt your customer experience? And what will the impact be to your company culture?

What Would You Do?

When confronted with this kind of problem whether it’s a decrease in profits, the loss of a key team member, a shift in supply-chain management, or something else – you have a choice – react or react constructively. Effective decision making is a process. Taking time to define the problem, evaluate your options, understand the effect each alternative might have, and determine the best course of action isn’t always black and white.

As a Leader…

You know your company and industry best, but however thoroughly you plan for change, each eventuality deserves thoughtful review. You may know your firm’s inherent risks and where you might make cost-saving measures. You may consider the long and short-term impact on corporate goals, goals of your employees, and the strength of your customer relationships. But don’t be afraid to speak to others. Sometimes the perspective from a trusted perspective can create a clearer view.

It is your responsibility to not only avoid costly mistakes, but also to consider that your decisions will impact more than just the bottom line. Knowing how to effectively make decisions as they come at you in all sizes, can alleviate some of the burden. After all, you have a lot riding on you.

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