A Strategic Advantage Design A Decision-Making Process

Mark Faust, president at Echelon Management, says that strategy and serendipity are very alike if you're prepared. How do you ensure your farm is prepared to be ready, willing and able to meet the challenges of the future? Start by creating a decision-making process.

Do you find yourself putting off making critical business decisions? Are you a person who struggles to take quick decisions? Here are some tools that have helped many leaders with whom we work efficiently make better decisions.

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Faust states that most managers don't employ any objective standards or tools for making decisions about the choices offered.

However, too many business owners whirl their wheels and then make decisions based on intuition instead of a more beneficial and objective approach could be used.

Jay Parsons, University of Nebraska agricultural economist, suggests that you not get overwhelmed by the numerous choices you're required to make in your business. As you analyze a decision make sure you clearly define your goal make sure you are relying on accurate information and focus on the bigger picture. Check out here to discover a useful content on roll the dice.

Knowing the difference between decisions that have to be made today and decisions that can be made later and the connections between them reveal a lot about the context of decision. The ability to focus on the objectives and not analyze alternatives allows for creativity and opens the door to possible solutions that allow for greater flexibility and better handling of the future uncertainty.

You have invaluable instincts that are based on years of information. However, Faust says, you could improve your decision-making success by using more tools to evaluate your options.

In most cases, there is an objective-oriented tool that we can pull out and use to help make the decision more logical and measurably and thus give confidence for CEOs to know they are doing the best they can when making this decision. Another option is to bring in an objective person, who doesn't have to be weighed down by the decision-making process, and can to accelerate your progress.

If you are faced with a choice between options, the first step is to ask these questions. Mark Faust suggests:

MUSTS What are the "musts," or non-negotiables that we must not compromise? They must be quantifiable, realistic and mandatory. Sometimes, this will result in a decrease in choices.

Wants What are the "wants" we would like to gain? Consider which of the "must" choices will meet the most of your wants. Each choice is appropriate in the event of specific requirements.

RISKS What are the possible dangers we should be thinking about? The majority of the decisions will become clearer, if not immediately obvious at this moment. The best decision is the one that is the most beneficial while minimizing risk.

GAINS: What potential benefits could you make? Consider the advantages of alternatives and determine whether an option will yield a solid return with the possibility of achieving the success.

For more risky and complex decision-making, business consultant Mark Faust says you might need to increase your analysis and process of thinking. He suggests putting your factors for decision making from above into a spreadsheet. You will need to consider the risk and benefits of each option.

He suggests that you can rank a reward between 1 to 5 using these guidelines.

1. Some minor improvement that you're the only one to know about.

2. A great improvement that your friends could benefit from and see.

3. A benefit that is companywide and people talk about regularly.

4. Customers are visiting your business.

5 = A game changer for your industry, business and more

After assessing the reward potential, do the same with the risks, considering the following ratings:

1 = Minor nuisance

2. A problem you can solve

3 = A problem for which you need to seek help. It would be made public by the company.

4 = A huge embarrassment

5 = A situation that could cause serious damage to your business.

Faust states that in order to effect positive changes, you must have at least a two-to-one ratio to the rewards. It is possible to look at other possibilities. If the risks are either -4 or -5, you might decide to eliminate that possibility.

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