The decision-making in your business is one of the most important aspects of bringing in revenue and keeping customers. Developing a team that knows how to make decisions based on what is best for the company is essential. Each decision made in your business can bring some amount of risk. This risk might be small or large, but it can affect the bottom line. If you would like to improve the decision making process in your business there are a few things that you can implement inspired from charlie munger mental models.
Making decisions and becoming excellent at making decisions is an experience that you create up over time. The more decisions you have to make the better you become at making them.As we age up we are granted certainly duties, we play sports, join clubs and are around different people. All of these actions are exceptional in supporting children develop that muscle of having to make decisions.Then as we become an adult and start working for others or ourselves again we are tested in the decision making area. Simply put those great decision makers are just use to making decisions straight away.
It is amazing how people would prefer to not make a decision that is wrong then making one at all. So where does this stem from, unfortunately also as we are growing up we are taught to do things right, we have ticks and crosses put on our work at school and we are encouraged to be successful? It is this constant reminder of the need to be correct that sticks with us when it comes to making daily decisions.
Successful people in life and business are those that can make a decision straight away and then make the decision work for them. Sure if you were building a new us you might collect different quotes, speak with the builders and get a feel for which one you like, BUT then you make a decision and not sit on it for the next 3 months. Become good at decision making today by getting used to making decisions.
Ways To Make Your Business Decisions Fast and Effective
1. Streamline your decision making process
Most product or service decisions today have to go through a chain of command, also known as a sign off loop. In today’s fast paced world sign off loops are more a liability than an asset because the market can change several times before the loop is complete. So how do you ensure all interested parties have their chance to approve a decision while accelerating the process? The answer is a cross functional development team that meets frequently. All those who have a stake attend. The dynamics of the meeting are to constantly review all aspects of the work in progress from idea to delivery and make decisions along the way and as needed. This process provides enormous flexibility (to accommodate the frequent market changes) while ensuring that the best information is available to make a decision and it is clearly communicated across the stakeholders. The efficiency gains here can be quite substantial because when the final decision is made the sign off loop process is also complete.
2. Improve the information available for your employees
Ever notice how much time it takes an engineer to find the document(s) they are looking for to work on their task? If the answer is more than a few minutes than your company is wasting time. A clear focus on organizing and facilitating easy access to key information is not rocket science; it is a matter of discipline. Improvements can be as simple as re-organizing your internal web site so that documents are easier to find. If you have a budget for information management upgrades, consider complimenting your customer resource manager with a content management system. New generation CMS uses metadata tagging for high speed searching with improved accuracy. And they have integrated archive and retrieval capabilities that make the content routing even more efficient. This translates into ultra low time- to- get what’s needed and at a lower support cost.
Improvements small or large in information access allow employees to make more informed decisions, and since they are not searching for days for the information they need, they make them faster. Many decisions are made in every company every day, no matter if the company size is small or large, so the effect of better decisions through better information has a compounding savings.
3. Connect your executives directly with your customers
Many executives spend a lot of time on the road today with their customers. But this is a serial process and often there are long time lags between visits, and the executives typically meet only other executives, or a microcosm of the organization their customer operates. Consider using electronic messaging as a form of directly connecting your executives to the customers. The magic of the internet allows your messages and influence to scale faster across the customer base and across the organizations within the customers. A key difference between these messages and a typical email blast is it comes with your executives name attached to it. This certainly will cause more people to read the message, and even feel connected to the executive if the articulation is correct. These messages translate into more dialogue and more information coming out about your customer’s needs. Or in other words, more and better data to make a more informed decision.
The ability for organizations to improve their decision making capability is a low cost, high return opportunity for stimulating revenue growth. Simple changes can ripple through an organization and have a big payoff.
Advance Tech Marketing helps companies accelerate revenue growth by assessing, recommending, and implementing innovative techniques for streamlining product and service development processes so that more informed decisions are made more rapidly. ATM also offers its innovative techniques through a series of affordable seminars.
Make any adjustments to the decision after it has been implemented. Adjustments may be needed after the fact to improve the situation. Always follow up with the decision to make sure that you have all of your bases covered.