Tuesday, August 17, 2010

Take effective decisions at the workplace

From The Economic Times


Courtesy: Mithila Mehta, Mumbai Mirror

In today’s fast paced and extremely competitive world, making effective decisions has become even more necessary. So brutal is the environment that a single bad decision could cost an upcoming manager his/her career.

Sometimes, decisions need to be made in the fraction of a second. There is no time for a collaboration or consensus. At other times, it is a long and research-intensive process. Multiple aspects, perspectives and opinions must be considered.

Keeping this contrast in mind, employees often find it difficult to form concrete parameters which will help them make effective decisions. However, here are some guidelines which will help make you a better decision-maker at work.

Understand The Context
No decision can be made effectively if you do not understand its fundamental basis. Understand the problem at hand in context, the various choices, the stakeholders involved, the consequences of the decision and its implications.

Know and Research: The employee who makes the best decisions isn’t necessarily the one who is the most experienced. “The best decision-maker is the person who knows the organisation the best. It is only when he/she is acutely aware of the firm’s current strengths, weaknesses and operations that decisions will be effective,” says brand manager Sharad Pant. 

Additionally, being well informed about the prevailing industry atmosphere, global trends and the competition is imperative. “Research is the basis of good decisions. And by research, I mean hardcore, current and verifiable facts,” adds Pant.

At the same time, don’t be overreliant on data and statistics. “In the process of number-crunching , managers often forget the humane aspect of their decisions. Also, numbers aren’t gospel; they can be misleading or untrue. Many employees succumb to what we call ‘paralysis by analysis’ and hence make poor decisions,” says Suruchi Agarwal, marketing, FMCG sector.

Emotions Quotient
Sometimes, the best decisions don’t come from the head, but from the heart. 

“I’ve seen some great decisions being made instinctively. Almost a decade ago, my organisation decided to change our packaging design to rival our competitor, despite not having done much market research. It was purely based on a gut feeling from the CEO. The spontaneous decision paid off,” says product manager Girish Setalvad.

Attitude Alert: The attitude you bring to the table during the decision-making process is of utmost importance. Always remember that it’s nothing personal, so leave your preconceived biases behind. 

Says Agarwal, “Decision-makers are commonly thought to be bossy, dominating and all-knowing. I’m sorry, but I must bust that myth. The ideal decision maker is one who listens, considers and collaborates when time permits. It’s also necessary to be flexible and open to criticism or divergent views.”

Collective Thought
The best decisions are often ones that stem from varied views and opinions. Collaborative decisions, that involve various stakeholders, are usually most effective at the workplace. 

“Our company was planning a complete revamp of the organisational structure by redefining the operations of key divisions. We decided to involve the employees in this process as well, since they would be directly affected by the result. We were able to evolve a strategy that addressed their concerns and priorities,” says Setalvad.

Consider Alternatives
One of the biggest mistakes made while taking decisions is getting stuck to a ‘pet solution’ and refusing to see other alternatives.

“It is important to consider various alternatives to a problem. These should then be evaluated using the pre-decided criteria or parameters to come up with the best option,“ says Agarwal. 

Also, do remember to consider the trade-offs or the opportunity costs involved.

While it is important to come up with a final decision, it is equally important to come up with a Plan B. 

“Be prepared for the eventuality that things may not work out as planned. At the same time, it doesn’t help to be overly pessimistic. Hope for the best but be prepared for the worst,” signs off Pant.

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