How do you make smart decisions?

Decision-making consists of finding an appropriate behavior to solve a problematic situation, where there are uncertain events. Given the importance of decision-making in business management and how difficult it can sometimes be to make good decisions.

I share with you some tips for a previous information collection.

• Identify and analyze the problem.

Find the problem and recognize that an appropriate decision needs to be made to solve it. There may be current problems or potential problems since they are estimated to exist.

 

• Identify the decision criteria and weigh them.

Those aspects that are relevant to making good decisions, i.e. those guidelines on which the decision depends. Each should be given a percentage weight.

• Define the priority for addressing the problem.

Priority is defined by the impact and urgency of addressing and resolving the problem.

•  Generate alternative solutions.

This consists of developing different solutions to the problem. The more options you have, the more likely you are to find satisfaction. Techniques such as brainstorming, focus groups, etc. Especially at this stage where creativity is key.

•  Evaluate the alternatives.

In this case, a detailed analysis of the possible solutions is done, examining their advantages and disadvantages, each in comparison with the other, and assigning a weight to each.

• Choice of the most effective alternative.

In this step, the alternative is chosen which, according to the evaluation, will obtain the most effective results for the problem. There are techniques (e.g., hierarchical decision analysis, decision tree) that help us evaluate multiple criteria.

• Decision implementation

Putting the decision into action so that we can evaluate whether or not the decision was right. Implementation is likely to lead to further, less important decisions.

• Evaluation of the results

After implementing the decision, it is necessary to evaluate whether or not the problem was solved, i.e., whether or not the decision has the expected result. If the result is not what you expected, you should look at whether it is because you should give yourself slightly more time to get the results. If the decision was not the right one, you should start the process again to find a more suitable decision.

Decide after you've analyzed what's going on and how likely it is to work!