How to make Good Decisions

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DECISION MAKING


Be it entrepreneurs, professionals, managers or even in personal lives we all take decisions, many a times unknowingly and at times using all our diligence. Sounds simple, isn’t it?  But .at crucial junctures in life it takes heart to take a decision. All instincts, knowledge and reasoning aside, a single decision can prove to be a remarkable milestone in life or even a sheer ruin!

But what is important? To obsess and wait with no action for a fear of a fatal mistake or to go forward and take a decision?  I think to take a decision. Even every moment we waste has an opportunity cost and we tend to lose the benefits we can reap out of a favorable choice.

Criticism at bay, prompt decisiveness is an integral part of a successful personality. Big accomplishments in life are never made procrastinating but, by a careful selection of available alternatives. Of course, we are what we chose to be. What matters here is our attitude AND COMMITMENT. Let us learn some basic facts of decision making to make better decisions personally and professionally.





DECISION MAKING PROCESS

DECISION MAKING MEANING AND PROCESS

The process of selection of an alternative from available alternatives is called Decision making. It is a crucial process as success of a choice shall decide the success we achieve in our business, profession or personal life as per the place where decision is made.

The process of decision making is simple if applied scientifically and fetches best results. It involves Identifying that a decision needs to be made. After that collection of information all required as a base for decision. Now, you need to chalk out the alternatives that can work out. Weigh each alternative as per its opportunity cost as well the impact it can make to your competitors. Identify your strengths, weakness. opportunities and possible threats. Now, select the best alternative. Apply and review the results for possible improvements.

These steps form the basis of all best decision-making processes. However, scientifically, decision making Matrix, game theory and more methods are available for a business decision.

HOW TO MAKE GOOD DECISIONS

how to make decisions

Decision making is as simple as taking to decide eat tomatoes or onions in salad to most complex like the decision of take overs and mergers in business. In any case the success lies in the choice you made. Is there any set of guidelines that can help us take better decisions? Not exactly. A preplanned framework for making decisions is not available. However, some suggestions are USEFUL: -

 

·        LET YOUR MIND BE CLEAR AND CALM

Before any decision is taken it is important to have a cool environment and control over one’s emotions and wandering mind. An overwhelmed, agitated mind, high in stress is unsuitable to make good decisions.

 

·        DO PROPER RESEARCH OF FACTS

Whatever be the scenario personal or professional a thorough research of related facts and figures is a must. Business decisions are always based on statistical facts. Collect relevant information from all possible sources. Trust on quantitative as well as qualitative facts.

 

·        DEFINE ALTERNATIVES CAREFULLY

Even if you carry first hand information about the figures chalk out the alternatives carefully. Be sure of what can be the extremes. Take time and use foresightedness while defining alternativeness.

 

·        SEARCH FOR MORE PROSPECTS

      Even after defining alternatives, with an eagle eye see if any more prospects are available. Incorrectly defined alternative course of actions are definitely more deleterious.

·        EVALUATE EACH ALTERNATIVE ON THE BASIS OF OPPORTUNITY COST THOROUGHLY

Each alternative has its own opportunity costs. Here we need to calculate which alternative is useful to fetch us the best returns in future. Make a spreadsheet to write the probable losses and gains. Weigh each alternative conscientiously. Your diligence is tested here for fruitful comparisons.

 

·        SEE HOW OTHERS (COMPETITORS IN CASE OF BUSINESS) ARE AFFECTED

Our decisions definitely affect others in our vicinity or line of operations. See that you profit high and competitors lose most. Of course, the family and friends should be least affected, in case they are.

 

·        CALCULATE LONG TERM GAINS

All decisions we make have a long-term effect on our lives, at times, irreparable. Therefore, a rigorous analysis of long-term effects is a must. Careful calculations, genuine forecasts and maturity in vision is a must here.

 

DECISION MAKING·        BE AWARE OF THREATS

Identify your fears or threats if any. In the course of business competitor’s strategy is the biggest fear one can face. In personal life also we face identified and unidentified fears. Analyze them well as it can have severe repercussions if not considered timely.

  TAKE HELP OF MENTORS OR FRIENDS

       Friends and Mentors are a great rescue when in trouble. Whenever required mentors and well-wishers should be consulted. Their rich experience can prove beneficial in decision making process.                   

·        REVIEW THE SUCCESS OF DECISIONS MADE

The success of the decision further depends on its review. Implement the decision and continuously review its progress. Compare it with the standards already set. This will help to analye deviations if any and make changes if required.

  USE 6 TH SENSE

Instincts tell everything. A calculated alternative having every reason in favor can work out to be wrong but gut feeling never lies! So, at times we need to trust our 6 sense to take decisions which are crucial

WHY TAKING GOOD DECISIONS IS IMPORTANT

1.      Increases our sense of Enthusiasm

2.      Increases our employee & client satisfaction

3.      Makes us Achievers

4.      Gives a right direction to our lives

5.      Helps us to utilize resources efficiently

6.      Makes us more committed

7.       Increases clarity of mind

8.      Helps us to develop better relationships

9.      Helps us to set our priorities

10.   Increases accuracy of work


Decisions are an integral part of life. Every time we make a choice we are taking a decision. This choice will govern whether or not we are smart professionals, sensible personalities, great achievers or poor losers. So, let us be alert in our selection and committed to what we choose.

 READ ALSO :

14 Strategies to Effective Leadership

Enthusiasm makes the difference

How to develop Emotional Intelligence


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