57% of executives who are newly appointed to their positions say that decision-making was more complicated and difficult than they had expected, according to a 10-year longitudinal study of more than 2,700 managers. Almost two-thirds of all leaders who enter executive roles are not prepared for them.
Leaders need to identify and tackle 21st-century problems and deal not only with crises but with the after effects of them. Business leaders must make business decisions effectively and easily that have a high impact on their organization. You may be an expert in the industry your business is based in, but to be successful you need to be more strategic in your approach to making choices about your business.
Why is decision-making difficult for leaders?
One of the reasons why people don’t want to make a decision or put off making the right one is because they are trying to please their employees. Sometimes decisions have to be made that will be unpopular, but nobody wants to start off in a newly-appointed position by making the kinds of changes that will make others grumble or lower morale.
Another reason why it’s hard for leaders to make decisions effectively is because they’re resolute in making the absolute best decision with all of the facts and data, but gathering that data often takes additional valuable time. Meanwhile, your company is watching you not make your decision, and what behaviors exhibit when you can’t.
Finding A Balance
The issue with avoiding making decisions in order to look right is that it sends a message that making mistakes must be avoided at all costs, and that how you look matters more than what you do. While this may not be intentional, it does have that effect on employees or others in an organization.
The solution is to accept that leaders often have to make decisions without all of the information, and that it’s possible that your anxiety about making the decision is distorting your perception. You will make many decisions in the course of your career, but not a large amount are going to have the kind of catastrophic effects that you may be fearing. But the best thing you can do is show that you were able to navigate the realities of the business world and the consequences it comes, rather than deny that problems or challenges exist when clearly they do.
Tips To Make Better Business Decisions
According to the professional business advisors at A Neumann & Associates, there are ways to make better decisions in spite of any trepidation or personal feelings you may have about your leadership style. You can visit their website to learn more about mergers and acquisitions advice.
- While you should never make a decision hastily, you don’t want to take too long to make it, either. Make a decision with the best information you have and be ready to accept the consequences.
- Limit how many options you give yourself to make a decision, and how many variables you use to make them.
- Focus on the long-term effects over the short-term repercussions.
- Monitor the progress of the decision: as with anything in business, you want to evaluate the effectiveness of your decision.
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