Better Business Starts with Better Decisions

How are various levels and types of decisions made in your business? And is the current way the best way?

These are critically important questions to ask and think about. However, most businesses never do.

Making good decisions quickly, at every level of your business, is key to efficiency, effectiveness and success. Yes, there are some key decisions that need to be mulled over and thoughtfully considered, but every day there are countless decisions that need to be made quickly or the business grinds to a halt and top-performers leave in frustration.

Here are 10 typical ‘decision scenarios.’

1. For major decisions, a ‘management committee’ openly and respectfully discusses the options. Decisions are then made by a majority vote or a trusted, competent leader. Next, a detailed implementation plan is created and effectively communicated, listing outcomes, actions, responsibilities and timelines. Specifically, what will be done, by whom, by when, at what cost, with what outcomes, measured how, rewarded how and followed up by whom. This is the process and discipline by which things actually get done.
2. Decisions are made but there is no effective and well-communicated implementation plan. Because of this, nothing actually happens most of the time.
3. All managers or shareholders must agree on any big decision before proceeding. Management is by consensus and it is slowing down or resulting in mediocre, compromise decisions that give no clear competitive or operational advantage.
4. Decisions are made by authoritarian rule. One person makes all decisions and everyone must get in line or else. Respectful debate and courageous conversations are not allowed.
5. Every decision is over-researched to avoid making any decision.
6. The business is a partnership or family business and the chosen leader is trusted to make most decisions. It’s clear what level of decisions must have wider approval.
7. The business is a partnership or family business and decisions are fraught with politics, drama and not-so-hidden agendas. The rest of the management team hides when disputes are underway. This is one of the reasons top-performing managers and supervisors don’t stay very long.
8. All decisions are made at the top, causing a huge bottleneck and frustration. This micro-managing has resulted in many good people leaving the business.
9. Routine decisions are made far down the organization because the team has been coached, trained, empowered and encouraged to get on with it. Team members understand company values, standards and commitments, and successfully make decisions within those agreed boundaries.
10. Many decisions don’t get made or take forever because of any number of reasons.

Which of these scenarios sounds most like your business? And what can be done so better decisions can be made more quickly and more often?

Ask team members in various roles and at various levels of your business for their thoughts. They may see things you’ve missed.

Donald Cooper has been both a world-class manufacturer and an award-winning retailer. Now a Toronto-based business speaker and management coach, he helps business owners and managers rethink, refocus and re-energize their business to create compelling customer value, clarity of purpose and long-term profitability. Donald can be reached at donald@donaldcooper.com.