If you think about it, life is a series of decisions and consequences that follow them. Smart decisions are the triumphs of judgment while bad decisions are opportunities to learn from and rectify our strategy.
The importance of the decision process in life is immense, as what we eventually become, is a consequence of the decisions we made in the past. We are what our choices and decisions make us to be.
Importance in Leadership
Leadership is perhaps one of the toughest tasks ever, because a leader makes decisions for all his followers. The fate of all followers is entwined with the decisions that a leader makes for them.
He is the leader because of his higher level of understanding and experience. He must choose what is best for all his followers and then his own self. The fact that they trust his judgment puts immense responsibility on his shoulders. There are many types of decision-making processes that one can adopt.
Who can know the importance of decision making, better than a leader? The leader's respect is heightened when the decisions he makes are validated by the test of time to be the best ones under the circumstances.
He must consider all variables and possible paths to attain a collective objective and choose the one with highest success rate. His ability to study and observe situations deeply helps him in choosing the right path. He must trust his ability and soundness of reason when making a decision. Becoming a leader of men is the ultimate test of character!
It starts with personal management skills. All of management boils down to two things which are creation of effective strategy and its execution. In short, it is all about making decisions and seeing them through to their end through execution.
Every decision made by the management of a business affects employee morale and performance, ultimately influencing the overall business performance. Management is all about getting things done in the most efficient manner.
Every management decision needs to be made while making most judicious use of resources at disposal with economical use of the time factor. The importance of decision making in management is immense as the business policy and culture adopted, ultimately affects a company's output and performance.
Profiting in a business is all about making the most of a window of opportunity that appears in a market place. Timing is of essence in business. Quick decisions on the spot, need to be made by business managers to take advantage of opportunities when they present themselves.
You can't mull over decisions for too long. In today's world, one needs business managers who can take snap decisions and execute the outlined strategy, despite obstacles. A loss or profit for a business boils down to one deciding moment of judgment! That is what business is all about, a combination of effective strategy executed with painstaking precision.
Significance in an Organization
The decision-making ability of the think tank of any organization, be it the local city council or United Nations, decides how effectively a role it will play in the world.
Many organizations exist for the sake of existing and despite phenomenal amount of resources available at their disposal, they hardly do any work. That is because there is no will or decision-making ability at the helm.
An organization without people, who can't make decisions and take them to their logical conclusion is doomed. However, when there is a decision-making will power, with tenacity to execute strategy, miracles can happen despite limited resources. That's why, its importance in any organization, can never be overemphasized.
Techniques That Aid Decision Making
One of the simplest of time tested techniques that aids decision making, is listing out the pros and cons of a choice. Not only does it help you analyze the risks involved, but it also helps you weigh and compare the merit of individual choices, with respect to each other.
An unbiased opinion of a person, who is not part of decision-making process, who gains or loses nothing from the consequences of a decision, but who knows a lot about the pertaining field can help you arrive at a better decision.
Get all the data or information you need, from diverse sources, before choosing a course of action. A single piece of vital information can totally change the direction of your thinking.
Studying case histories of people who found themselves in similar situations can help in predicting the consequences of complex decisions. Making a mind map of the connected aspects related to the subject, helps in understanding the problem and arrive at a better solution.
Lastly, thinking about long term gains, instead of short term profit is what separates the visionaries from others, when it comes to decision making. Ergo, think long term and understand the consequences of your decision before making it!
The way to get better at making smarter decisions is learning from experience and not repeating the same mistakes again. No decision is perfect, in the sense that no decision can guarantee a 100% success rate in attainment of objective.
However, you must choose the best course of action that has highest chance of success and is backed by logic and confidence in your own judgment. Decisions may turn out to be good or bad but none of them are wasted. Bad or good ones, both add up to what we call wisdom if they are analyzed in the aftermath.
One often realizes the importance of making the right decisions, only after making a couple of bad ones. Don't avoid making decisions on your own. Every decision that you make for yourself is an opportunity to grow and learn. Don't miss it.