Preface: The decisions you make to make a decision, are key to your achievements as an entrepreneur. This article is intended to help you think about your decisions, e.g. Why did I read this? What did I learn?
Decisions
As an executive in your business, your most important talent is the ability to formulate good decisions. President Obama is quoted as saying i) “You’ll see I wear only gray or blue suits. I’m trying to pare down my decisions. I don’t want to make decisions about what I’m eating or wearing. Because I have too many other decisions to make”…. [and] ii) “You need to focus your decision-making energy. You need to routinize yourself. You can’t be going through the day distracted by trivia.”
Good decision making is serious business.
When you think about it, the highest paid work on the globe is decision making. The decisions you make today will be key to your businesses success in the future. The tools you develop to help you make key decisions will significantly improve the success and appreciation for the outcomes of your decisions. Often the tools you acquire to make strategic decisions successfully, are obtained with the development of expertise.
These tools can be gained via training and advisors, or real practical experience. The case study method is designed to provide development of appropriate decision making tools. Business roundtables and advisors are too. When you’re faced with a decision, i.e. should we begin to sell product in international markets; you are making a decision that has a range of outcomes. Many companies begin by looking at what they understand about their current market, international product or service applications, and factors they think vital to success.
You don’t know what you don’t know. Always start with that premise. Weather, currency markets, innovation, and social trends can change business conditions. Sometimes quicker than you can get a return on investment.
When making business decisions, first, collaborate with the range of outcomes that could result from your decision, e.g. maybe we won’t sell more than 1000 units; or currency risks could make us uncompetitive, etc.
How can you obtain the information you need to make a good decision? Again, you don’t know what you don’t know. We have preconceived notions when making decision that often hinder successful fair assessments in predicting future business environments and market potential. This is where you need tools. Information markets are prevalent, and developing rapidly. Utilizing trusted advisors, market research firms and talking with industry analysts will help you with making informed management decision. The financial aspect is also pivotal to the success of your decision. If you’re speculating on inventory, can your cash flow survive a downturn without inventory obsolescence? Or if you’re building infrastructure, will your overhead exceed operating cash flow if sales decline for prolonged period. The operations risks of your decisions will also need evaluated, e.g. what key employee risks does the decision have?
Summary: A decision to not make a decision, is a decision. A decision to maintain the status quo is decision. A decision to be innovative is a process of decisions. Assuming risk is a decision. Begin to think about the decisions you make, to make decisions for your business. Ask yourself, why did I make that decision? Why do/did I think it was the right decision? Will this decision lead me to high land or oasis? What did I learn from that decision? What guided that decision?
The most valuable use of your time to achieve more success as an entrepreneur is to hone your “decision-making energy”. And, that ultimately will lead you to achieve and further the vision you have for your business.