Making good decisions is essential to success in any industry. Poor decisions can come at a high cost to both your business and your clients, says Rosemary Smyth, founder of Rosemary Smyth and Associates in Victoria.
Most of us tend to procrastinate when it comes to making important decisions, Smyth says, which often results in poor choices in the long run. By taking a proactive approach to decision-making, you can increase your chances of a positive outcome and develop trust among those around you.
The following strategies can help you make the right choices at the right time:
> Ask the “five whys”
The first step is to make sure you fully understand the issue before making a commitment, Smyth says.
She recommends a strategy called the “five whys” — a popular question-asking technique that can be used to identify the root cause of a particular problem. Ask a “why” question about your impending decision. Then, ask “why” of the answer again and again until you have asked “why” five times. (Five appears to be the magic number for pinpointing the real issue.)
> Map out the consequences
One way to predict the consequences of a decision is to create a “futures wheel” — a brainstorming method intended to map out the potential impacts of a decision, Smyth says.
For example, if you are thinking of hiring a new assistant, write that decision in the middle of a page, with a circle around it. Next, connect that circle to a surrounding wheel of circles, each listing a primary consequence of that decision. So, in this case, you would connect hiring an assistant to the primary consequence of delegating more important tasks.
Your next step is to create a second ring to the wheel while connecting secondary consequences to those primary consequences. For example, you may be able to take more vacations, which connects to one of your primary consequences of delegating more important tasks.
> Check your track record
When determining how you should respond to current problems, evaluate the results of past decisions. This task is fairly simple because you will probably know with certainty whether an outcome was good or bad.
But, Smyth adds, don’t dwell on past mistakes. For example, if you missed out on a lucrative IPO a decade ago, don’t kick yourself over it every time you hear of a new issue. Regret will only inhibit your confidence in making decisions in the future.
> Sleep on it
Making important decisions when you’re feeling overwhelmed is difficult. If you’re tired and stressed, you probably will lack the energy and alertness to explore all of your options before deciding on a solution.
The traditional advice, to “sleep on it,” applies here. You will have a new perspective when you are rested, Smyth says.
> Communicate your decisions
Saying “trust me” to others won’t suffice. Always communicate how and why you reached your decision, Smyth says. For example, when presenting a decision to clients, explain that you’ve read the research, reflected on past experiences or created a chart to weigh the options.
This is the first part in a two-part series on an effective decision-making process.