When you own or run a business, no matter the size, you are required and trusted to make the best decisions for your team. Review the most common decision-making techniques to help you run your business smoother.
Business owners and managers must understand the impact and importance of each decision they make. The results of the wrong or right choices can affect the entire business. It is vital that business owners continue to improve and update their decision-making skill set. Most of the time, the basics of decision making are the same. However, new techniques are evolving every day, having an impact on making significant decisions for your company. Below we have outlined the most common decision-making techniques that professionals use in businesses just like yours!
Also known as group decision making, collaborative decision making is a decision-making technique that works precisely the way it sounds. Decisions are discussed and weighed by a group of people. These people, most often your employees, are chosen either at random or are compiled based on their experiences and knowledge in the company. This decision-making method is one of the most impactful ways to decide, but it is also the most time-consuming.
When something is decided through the collaborative technique, it can happen through reaching a consensus or a non-collaborative decision. The consensus is achieved when all of the parties making a choice come to a common agreement regarding the decision. The above examples have a good outcome if they are reached through unison amongst the parties.
The advantage of such decision-making is that it’s a win-win for all involved. It’s not about having a win here and be on the losing side elsewhere. The decision has the agreement of all parties because they accept the choice of the group due to it bringing them the value that is in line with their interest. Nevertheless, not all collaborative decisions will be consensus-based. Some may be ‘dictated’ from upper management levels, and they need to agree, rather than want to fully agree with the decision.
The command technique is very rare nowadays. You may come across it in the army, or not even there. This decision-making technique is connected to the autocratic leadership style. Through the command technique, leaders make decisions without talking with higher managers or their teams when deciding. This style is standard and often speeds up the decision-making process. Often, this technique works best when you must make a quick, time-sensitive decision.
This type of decision-making is used, for example, at the time of a merger or acquisition decision when leaders of an organization may not consult with you when making their choice.
Some decisions are made out of convenience. The decision-maker may choose to go with the flow or pick the option with less resistance, even opting for the alternative with the least pain. This technique comes in handy, too when the decision-maker wants to gloss over something that they may consider a weakness.
The convenience technique is a ‘hands-off‘ approach to decision making. This technique can be one of the toughest for business owners and managers. Delegating and trusting another person to make the best decision for your company may be daunting and stressful. However, this decision-making technique also opens up perspectives you had not looked at before. Handing over a decision to someone else on operational matters can empower your team while clearing up time on your schedule. The convenience technique is one of the most difficult methods, yet it is an impactful and rewarding way to make a decision. It has downsides, too, unfortunately. Placing decisions in the hands of an employee may leave you open to not knowing what is happening in your business. This notion could leave you facing trouble when they step out of the company.
Read the following article on How Do Women Do Business?