What is management decision making?
Stop Making Decisions That Waste Time and Money
Many managers rely on gut instinct to make important decisions, which often leads to poor results. On the contrary, when managers insist on incorporating logic and evidence, they make better choices and their companies benefit. Here are three ways to introduce evidence-based management at your company:
- Demand evidence. Whenever anyone makes a compelling claim, ask for supporting data. Don't take someone's word for it.
- Examine logic. Look closely at the evidence and be sure the logic holds up. Be on the lookout for faulty cause-and-effect reasoning.
- Encourage experimentation. If you don't have evidence, create some. Invite managers to conduct small experiments to test the viability of proposed strategies and use the resulting data to guide decisions.
Adapted from Harvard Business Review on Making Smart Decisions
Three Tips for Making Trade-offs
Every important decision inevitably involves a trade-off. Knowing what you can't pursue is as valuable as articulating what you will. But how do you know which trade-offs are acceptable and which are losing propositions? Here are three ways to help make the distinction:
- Get input on pros and cons. List advantages and disadvantages and ask others for their perspective on which carries the heaviest weight.
- Balance short term with long term. Determine what you'd be willing to give up in the long run for some important short-term gain — and vice versa.
- Gauge support. While weighing alternatives, think about who will support a particular idea and who will oppose it. Ask whose support you can live without, and whose backing and buy-in you absolutely need.
Adapted from The Harvard ManageMentor module "Strategic Thinking"
Schedule Time for Second Guessing
Questioning whether or not you've made the right decision can be a useful way to make sure you're on the right track. But if you second guess yourself at the wrong time, you may feel tempted to give up on important commitments. Don't question yourself when you are most vulnerable. Instead, schedule a time to review your decision critically when you are in the right frame of mind. For example, don't wonder whether you should abandon a plan to talk more during meetings when you are walking into the conference room. Rather, tell yourself that you will question the decision ten minutes into the meeting, once you've had time to get used to the idea. Setting a time will also help you second guess once rather than nagging yourself with doubts.
Adapted from "How (and When) to Motivate Yourself" by Peter Bregman
Avoid Three Common Decision-Traps
The benefits of competitor link analysis.
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“I had grown weary of upper management making decisions for client-facing advisors pertaining to the tools used and the manner of serving clients,” he writes on ThinkAdvisor.
Why is research necessary to assist managers in the decision making process
By first doing research, managers can be sure that their decisions are based on actual data (and not guesswork) and that their decisions are relevant to actual market forces (and not only their imagination).