Business leaders and entrepreneurs are faced with endless decisions. The effect of every decision can impact the forward motion of the organization, address critical business needs or simply keep operations steadfast. Decisions are part of the bosses daily to do list. How decisions are made reflects your effectiveness and judgement.
As a leader, you have the role as crowning decider. Confidence in your ability to make decisions impacts how others recognize you inside and outside your organization. Employees, partners, customers, vendors, investors and your market industry all evaluate your strength as a leader based on your decision making skills.
Being resolute and determined assures others you are unmistakably in the right position to guide the company. Responsibility and accountability rest on your shoulders, always. Whether you delegate the actual decision making process to someone in your business or not, you own the outcome.
How leaders make decisions sets the pace of how the business operates and often to what degree it succeeds.
- Fast Decision Makers: High growth, innovative businesses require a leader adept to making rapid decisions, trusting intuition and using a high threshold for exposure to risk. Failure is an option for this type of decision maker, as the decider is likely a pro at pivoting.
- Moderate Decision Makers: Leaders that use managed growth strategies require a steady hand. They are assessors and consumers of strategic evaluations and advice to help mitigate risk. Roadmaps, KPIs and measured milestones often guide this type of leader in their timing of decisions.
- Slow Decision Makers: Risk adverse companies who have a very low tolerance for failure, perhaps because of the financial structure, need a decider who will go beyond assessment. They use defined research, analytic and data resources, detailed reports and experts to evaluate their decisions. These type of deciders are patient and often are primarily focused on long-term goals and objectives.
Of all types of deciders, the biggest failure of any business leader is NOT making a decision. CEOs and business owners are often surrounded by advisors and have multiple inputs into their decision making processes. It can complicate the final call. Talk is not cheap. Too many inputs can slow down decisions and increase risk.
Businesses fail in absence of making decisions. New technologies can sweep them out of the market. Hindered by bad personnel, companies can be drained of momentum and energy. Capital issues can delay key projects and impact future revenue. Making a decision, can negate these types of risks.
Empowering others to make decisions is important in any business. Provide others the capability of being creative and strategic in their role by decision making authority. You want thinkers and doers in your business. If they are only allowed to do, based on your decisions, you can stifle cooperation and confidence.
You may need to set limitations on decision making capabilities by your empowered team based on the business risk tolerance. Budgeting is one way to put in business controls, along with road maps. Define what has the most critical impact on the business and put in place the sign-off authority for those decisions. For example, if a product development change can delay meeting a critical release date of a product or service, put in place authorizations to manage expectations with all stakeholders.
Whether a decision relates to products, markets, finances, technologies or personnel, a business can easily become paralyzed without a strong leader that makes decisions. The final decision is the responsibility of the leader. Inputs need to be managed. Assign a deadline and know when a final decision must be made, without exception.
As the decider, you have the ultimate power. How you use your power is a reflection of your leadership. Whether you choose to make rapid decisions or methodical, deliberate decisions, the action matters most. Don’t let decisions, small or large, slow you or your business down. Procrastination is deadly. Lead by deciding. Decide how you will lead. Decide now.