How are correct decisions made?

Decision making

Photo: misterQM/ resource: www.photocase.com

A reporter asks a successful entrepreneur for the secret of his success. After briefly thinking about it, he responds:

“The secret of my success is that I make the correct decisions.”

“OK, but how do you go about making the correct decisions?”

The entrepreneur replies:

“From experience”

The reporter digs in:

“Right, and how do you gather experience?”

The entrepreneur smiles:

“That is actually very straightforward:
by making bad decisions.”

Wait and see is usually the inferior alternative

During the regular workday you frequently do not have access to all important information. You want to avoid making mistakes, but must still make a prompt decision.

When you do not make a decision and wait, this is also a type of decision – but it is usually the more inferior one.

Anyone who waits until only one decision alternative is left has defaulted on his decision making power. The situation or someone else has made the decision for him. He is without power in the true sense of the word, and therefore impotent.

Make a decision now?

Sure, but how should one go about doing this? – Do not wait, but make a decision now, especially when the required decision can be reversed later without incurring large costs or efforts.

You will save time and energy by taking this approach. If you find out later that you were wrong, you can make a straightforward correction. You will be amazed about how many decisions you can make on the spot without having to reverse these later.

Decisions that need time

However, there are decisions that are better made with more consideration. For instance, these include the selection of employees, company locations, enterprise software, and also product and company names. Poor decisions in these areas can be very costly.

But keep in mind: A clear-cut solution does not exist for a multitude of problems. Perfection is an illusion in this case. After a period of waiting and deliberating, you will reach a point at which more information, or even more pros and cons, are of no further help. You must then take a calculated risk. A question that may help in this case is:

“What is the worst possible outcome?”

This may help you get your arms around your fear of making a bad decision.

Bad decisions and future success

You must accept that in your role as an executive you will be required to make decisions, even if you do not have a complete set of facts for lack of information.

You should not be afraid to admit to bad decisions, and to reverse these. By doing so, you are demonstrating your ability to learn. The aforementioned entrepreneur would say:

“Your failures and mistakes are a condition for your future success.”

How do you make your decisions?

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  • http://www.mattparro.com/london-magician/ magician london

    Thank you for such a great post! I’m really looking forward to reading more of your blogs!

  • http://priorsystems.com Sergey

    Unexpectedly I have found very interesting source of information about business consulting.
    As a professional consultant, I have been dealing with such sphere of consulting during almost 6 years.
    I live in Moscow, Russia.
    To my surprise I disclose that it’s possible to explain some difficult things by intelligible words.
    It’s great!
    But let me to object slightly to the words: “You failures and mistakes are a condition for your future success.”
    It may occured during initial period of staing business.
    I think a businessman must be oriented on future success only, because it’s necessary to count all possible failures.

    • http://www.mehr-fuehren.de Bernd Geropp Admin

      Dear Sergey,

      Thanks for your comment.
      Of course in the end a business man wants to be successful and he should focus on that. The point I’d like to make here is that success can often not be planned.

      Mostly you will go thru a process of try and error to get to your success.
      There is a common story about Thomas Alva Edison: The story goes that he failed more than 1,000 times when trying to create the light bulb. When asked about it, Edison said:
      “I have not failed 1,000 times. I have successfully discovered 1,000 way to NOT make a light bulb.”

      Best Regards
      Bernd

      • http://priorsystems.com Sergey

        Dear Bernd,
        I have understood the sense of your words.
        Thank you.
        I downloaded your “The 7 Basic of Leadership” e-book.
        I think the book is probably usefull for all.
        After learning it I’ll share my impressions.

        Best Regards
        Sergey

        • http://www.mehr-fuehren.de Bernd Geropp Admin

          Dear Sergey,
          Thanks. I am looking forward to hear your feedback.
          That will help me to improve the E-Book.
          Have a great day
          Bernd