Decision-making occurs at every level of a business, advancing in pyramid-like fashion from the mundane decisions made every day by low-level employees to far-reaching executive decisions that may require years of deliberation.
Such decision-making can be divided along the dimension of programmed versus nonprogrammed. Many decisions will be programmed decisions, executed by an employee under some sort of rulebook or company guidelines. It’s the non-programmed decisions, however, that can be so much more consequential.
We’ve outlined decision-making techniques that will help you weigh your options.
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While numerous entities from academic institutions to advice blogs have attempted to distill the decision-making process into a series of five to seven steps (the University of Massachusetts-Dartmouth’s seven basic steps is an oft-cited one), all more or less follow the same format:
Identify your goal. This may sound like a no-brainer for personal goals, but for business goals, the more stakeholders, the more likely your goals are going to be misaligned.
Gather relevant information. This includes identifying courses of action, identifying alternatives and researching both.
Evaluate your options. At this point, decision-makers must weigh the evidence.
Make your choice.
Evaluate your decision. This includes both short-term and long-term evaluation.