“Options have the power to remove fear.”ĭetermine the worst-case scenario. “Quality decisions come from having the most options-find them,” he says. “Procrastination can be avoided by setting a self-imposed deadline,” Ramsey says.
Incorporating a process or checklist can help strengthen the decision-making skills of C-suite executives.įinancial guru Dave Ramsey, author of EntreLeadership (Howard Books, 2011) who trains leaders on better decision-making, says the key steps include:
The downside: If a consensus can’t be reached, the leader must choose a different approach. The leader collaborates with others on options and is highly influenced by their feelings and opinions. The leader relies on direct observation, facts and data.īehavioral. This style is suited for long-term projects and planning.Īnalytical. The leader seeks ideas from team members, which encourages creativity and innovation. The advantage is that decisions can be reached quickly the disadvantage is that the leader might not consider the long-term ramifications.Ĭonceptual. The leader uses his or her knowledge and past experience to reach a decision without seeking information from others. “Leaders who remain transparent in the manner in which they make decisions and why they choose different styles, dependent on the type of decision, are able to build trust and respect.”įour commonly recognized decision-making styles are:ĭirective. “Determining which style to use and when requires an understanding of your authority and role as leader, the expectations of your team, and the types of decisions to be made,” Hansen says. “Having a narrow-minded approach to decision-making can limit your growth as a leader, and you may be missing out on a decision that could actually benefit you and the company.”īecause each decision is different, leaders would be wise to choose the appropriate decision-making style for the situation at hand, says Marie Hansen, SHRM-SCP, dean of the College of Business at Husson University in Maine. “A good leader is open-minded and takes into consideration other ideas and points of view,” says Jennifer Lee Magas, vice president of Magas Media Consultants in Monroe, Conn., who has a background in HR and employment law. In today’s fast-paced and complex business world, leaders must continuously refine their decision-making processes and practices to ensure they stay on the right path. In fact, there’s a 95 percent correlation between companies that excel at effective decision-making and those with strong financial performance, according to research by Bain & Co., a global management consultancy in Boston.
A glance at recent news articles will show plenty of examples of poor decisions that sent companies into a downward spiral. However, decisions made by business leaders can determine whether an organization ultimately succeeds or fails. The average person makes thousands of decisions each day, and most of them have little lasting impact.
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