by Steve Burden

Created on: December 25, 2011   Last Updated: December 26, 2011

Decision making skills in business matters, are learned in the face of baffling options and promising opportunities. While minor decisions do not need any more than common sense to make - perhaps too often made by habit or impulse, business decisions have far reaching consequences and cannot be left to mere guesswork or misguided optimism. 

A firm executive decision can brush aside all opposition, go against public opinion, and challenge the patience of investors but occasionally, it proves to be inspired. Inventors have always needed guts to get their ideas to the marketplace. Many have risked everything to earn the prize of a best-selling product.

Today's world of intelligent technology has made 'smart' devises part of everyday life for a global community of users. Success can mean serious profits. Businesses dipping their toes into this particular 'pool', have to do their sums very carefully, and use their very best decision-making skills before taking the plunge!

In ordinary life, choosing A over B may not be a matter of life or death, but in business, a change today can bring about huge benefits that would not occur if no change were made. Of course, the opposite is equally true, but as a rule, good decisions bring about good consequences, bad decisions - bad consequences.

Mathematicians like to reduce a problem to neat statements that seek to measure outcomes. It would be interesting to know if professional mathematicians ever make wrong decisions! What is the probability of getting things right all the time?

The best decisions are made when the best information is available and assessed by the best brains at one's disposal. A business cannot afford to gamble on outcomes that are possible but unlikely. Balancing risks today against possible gains tomorrow takes experience, wisdom, morals, and guts. One must stay away from what is simply wrong, foolish or too risky to be a sound business decision. Being able to navigate through the conflicting demands of a tricky decision demonstrates good decision-making skills. 

1. Know the ultimate intended goal of the decision. The clearer the sense of direction, the easier it will be to weigh up the consequences of the decision.

2. Research the situation thoroughly, understand the likely outcome of any change you may decide to impose. Are there legal implications? Will there be a social impact? How much will it cost?

3. Depending on the scope of the decision, inform a sample of the people most likely to be affected and actively seek honest comeback. If large numbers of people are involved, work hard to get them on board before the change is implemented.

4. Be prepared to make adjustments before implementing the decision. 

5. Follow through on any promise made in the decision making process.

6. Implement the decision, work hard to keep the changes on track, on time, and on budget!

Good decision-making skills are like SAT-NAV for a car driver. It is easy for a few satellites to guide the car driver to his destination. It is not quite so easy to steer a way through the complicated process of making good business decisions. One thing is certain: Getting educated, wise and mature advice from an objective source will go a long way towards reaching a 'profitable' destination for the business.

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