Published by Allen Brown
Making the correct decision for your business is never easy, especially when there is a great deal of money on the line. The good news is that you can use the techniques below to make better, sounder, and more robust decisions that will lead to increased profits for your company. Read on to find out what they are.
Use a data-driven approach
We live in an unprecedented time when it comes to data, and because so much of what we do online and within our business systems is able to be tracked it provides a wealth of invaluable data that can be used to help make better informed decisions.
Indeed, opting for a data-driven approach rather than relying on the instincts of a single person or the board is a much more powerful way of making the right decisions for your business. This is because data doesn’t lie, or have biases which means you have a much better opportunity to make decisions on a solid foundation that you know will give your company the best chance of success. This can be particularly important in today’s competitive business world, where even a small change can help you succeed over others in your market.
Utilise a project steering committee
Sometimes the best decisions are ones made by those that are somewhat removed or have a more objective standpoint. That is where a project steering committee comes in. If you haven’t come across the term before you can find a detailed project steering committee definition here. But basically, it’s a group of people that can help you get your decisions right.
Indeed, utilising a project steering committee means benefitting from the knowledge of a group of experienced individuals whose aim is to ensure your business stays on track with its goals. Such help can be particularly effective when not all senior managers agree on the best way to make a decision and move forward.
Consider more than one perspective
Whether you are gathering a quote for a service or supplies, or you have an important decision to make concerning the next person you will employ, getting opinions and perspectives from multiple people can be very helpful.
Indeed, the trick here is knowing just who to ask depending on the decision being made. For example, when taking on a new employee it’s crucial that they have the ability to do the job so you’ll need the input of HR. They will also need to fit in well with their proposed team, which means asking their team or at least the team leader what they think of them. Then you’ll want the input of the department head to see if they have a good attitude, as well as the owner of the business in many situations as well.
Listen to your customers
Too many businesses ignore what their customers have to say about decisions they are going to make as if they will be just expected to accept them. This is ironic as customers are the key people that most companies need to please and impress and if they don’t like a decision they will make it known by no longer buying the product or doing business with your brand.
To that end, it’s crucial to consult with customers before any major decisions are made, especially when they occur in a customer-facing element of a business such as a product, service, or brand element.
Often the best way to consult with customers before a major decision is to ask them to send in their feedback either via social media or by providing contact details on your packaging. Focus groups are also a helpful way of ascertaining what specific demographics think about any decisions you plan to make before you make them.
Listen to your employees
Traditionally in the workplace employees have been told what to do and so need to listen to the company that employs them. However, when it comes communication and to making decisions, it’s crucial that your business first consults with and listens to the answers that your employees give.
This is for two critical reasons. The first is that employees are at the cutting edge of your operations and so they tend to know what needs changing and how better than anyone else. This means ignoring their expertise is unwise at best and can be at worst fatal for your business.
The other vital reason that employers need to listen to their workers when making important decisions is that they rely on them for their business to run. This means if they make a decision that is hugely unpopular with their employees they run the risk of poor morale, poor productivity and even a walkout out which can seriously harm a business’s ability to operate.