The personnel at the C-suite level are majorly responsible for the growth of a company. This is particularly applicable to the CEO who’s decision can be the making / breaking point of a firm. So how do they take these decisions though they are faced by the tremendous pressure of the potential impact created by them.
1. What is the value?
This is essentially determining the value add the decision is going to bring to our lives. This could be both tangible/non-tangible benefits. Examples could be the ROI on mutual funds investment, Commitment on regular Physical exercise, etc.
2. What is the cost?
This is going to cost of taking the decision. It could be of any form ranging from Time, Monetary, Opportunity, Effort, etc. If the benefits is going to be less the costs involved, then it would be better to reject it.
3. Can the decision be reversed?
The answer to this question decides the importance of the decision at hand. If the answer is yes, we have some breather space and at certain amount of loss, we can go back to original state if things go south. If the answer is no, then there is no turning back and hence the need for us to be 100% sure.
4. Can the decision making be split into smaller parts?
Breaking down a decision into smaller parts often makes it easier. A simple example would be where you want to start savings for your retirement. If we break it down, it could be either to save money by either increasing revenue or decreasing costs. Breaking it further would be where we analyze the factors of each decision path.
5. Who are the people involved?
The most important part is to identify and include the people involved in the decision making directly or indirectly. For example, Buying a house on mortgage would involve your family as internal stakeholders and also require banking officials who approve your loan as external stakeholders.
By following these steps, you would definitely improve the quality of your decision making and that of your decisions as well. All the best!