What It Takes to Make a Good Decision

Are you good at making decisions? Given how many we make throughout the day, I bet most of us believe that we are. But our process for those "important" decisions could likely be more efficient. We often tackle big, important decisions by bringing together a group of people, exploring different approaches and outcomes, and debating their merits...
Dan Berger

Are you good at making decisions? Given how many we make throughout the day, I bet most of us believe that we are. But our process for those "important" decisions could likely be more efficient.

We often tackle big, important decisions by bringing together a group of people, exploring different approaches and outcomes, and debating their merits before actually moving forward with a plan of action. And that's not even taking into account second-guesses or backtracking that is common when making a business decision.

Don't get me wrong – discussing an issue and developing a response is not a bad way to approach decision-making. But a survey from management consulting firm McKinsey & Company revealed that almost half of C-suite executives believe more than half the time they spend making decisions is ineffective. In response, the company provided three strategies to help leaders make better decisions – and do it faster:

  1. Make decisions at the right level. It can be hard to delegate, but a president or CEO of a company can't make every decision – that is a huge misuse of time. Ensuring managers and employees are empowered to make decisions within their purview will result in a more efficient and effective process.
  2. Focus relentlessly on enterprise-level value. Each of our organizations has a vision and mission. What we do each day should tier up to that ultimate goal. As a result, we should consider how big of an impact a decision will have on our overall strategy and allocate resources accordingly.
  3. Get commitment from relevant stakeholders. This doesn't mean we should always engage in consensus decision making. Instead, it's more focused on putting the plan into action after a decision is made. I have a few tips to communicate change effectively here.

Decisions should be thoughtful, but time is often a luxury – especially in a crisis or fast-response situation. By having a clear process in place, involving the right people and driving change effectively, your decision-making skills could be what takes your company from good to great.

Follow me on Twitter (@BDanBerger).

Dan Berger

B. Dan Berger first joined NAFCU in 2006 and has helped expand the association’s reputation into becoming a premier advocate for the credit union industry.

Read full bio

Source: www.nafcu.org