Characteristics of a Good Decision

 In Entrepreneurship

Effective decision making is an essential skill required for business leaders, though it’s not an inborn talent but something that can be gained through years of practice.

A leader can make any decision but what matters more are EFFECTIVE decisions making to bring in the positive outcome. When you make a decision within your company, there are certain characteristics that make it a good and effective decision.

Here are a few characteristics of a good decision:

It overcome the issues or meet the purpose
The role of the decision maker comes when there happens to be a particular issue to overcome or have a purpose to meet. This means that any decision to be made has a purpose. So an effective decision helps to overcome the problem/ purpose one have.

It helps to achieve the preset goals
Decisions should be able to achieve goals consistently. Suppose, you wanted to retain your customers for the long run and you have decided to offer low prices for all your products, however, you delivered extremely poor service where customer will never come back in spite of your low price offer. So don’t you think, that would automatically turn out as a bad decision to retain the customers for the long run, by simply offering them a low price? Instead, if you have focused more on amazing customer service together with lower price, would definitely turn that as a good decision, where customer would love to come back to you.

A good decision will be unbiased
A good decision relies on facts and for the best interest of a business and everyone involved, not playing favours or sides to anything or anyone in particular.

A good decision should be easy to execute or implement
Decision you make should be easy to execute, if not, it would be simply waste of time.

It Involve others when formulating it
Usually a good decision can be formulated by involving others. You could ask your team mates to come up with ideas and alternatives to overcome the identified issue/problem. This way, you could have relevant info before you make a decision.

Analyze the pros and cons
You can’t straight away use the collected info to make a decision. Rather sit down and evaluate the pros and cons of each alternative, based on facts. This helps you to cut down the drawbacks and negatives of each alternative.

It should be based on sound reasoning and should be transparent
In short, you should be able to justify yourself as “I’m choosing this alternative because____”. It should have transparency and shouldn’t create any chaos in the minds of others.

Figure out a way that works best for your situation and that meets the characteristics of a good decision. It varies with the situation though the basic element remains the same. A good decision does not require that everyone be happy with the result or agree with the decision-maker. To put it simply, a good decision helps to succeed at each step.



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