Decision making is the power to choose, whatever the circumstances, the best path the company will take. However, in order to be assertive in this mission, it is necessary to understand the stages of this process, as well as the types of decisions that exist to solve any problem in your business.

Making decisions, however small and less complex they are within a company, is not an easy task.

There are many variables to consider – and ignoring some details can lead to a major headache later on.

Especially because, when we talk about an organization, we deal with customer and employee expectations. All of this needs to be measured.

The work of those who are in the management of some sector, therefore, is and will always be strategic.

The steps in the decision-making process thus make this mission much easier and ensure that they occur on the necessary terms.

Today’s article talks about exactly what this process is, how to implement it in companies (regardless of its size), the steps and tools that help in this mission.

Let’s check it out?

Good reading!

What is the decision-making process?

Decision-making process

As we said earlier, the decision-making process is a set of strategies and actions that aim at assertive decision making within a company.

It is the ability to choose the best path in a given context.

It starts with identifying the problem. Which is not always easy. After all, it is necessary to have the necessary information and be truly immersed in the daily life of an organization to have an accurate diagnosis.

Then, it is necessary to identify the factors that led to this problem and, therefore, choose the best way to solve it.

Thus, it is up to people in management positions to analyze the work environment to detect situations in which it is necessary to intervene.

As it is a process, this decision occurs in stages – which we will discuss later – that cannot be ignored.

After all, the intervention to correct something needs to occur not only with empirical knowledge of those who occupy a hierarchically greater position.

Sector numbers are also equally relevant for initially not committing any injustice.

So, here’s a tip: metrify everything. When there are numbers, there is precision and full understanding of reality.

It is the initial step, for example, to make a fair performance evaluation of a professional or of an entire team.

And, from there, have more security and understand what it does and what does not make sense to put into practice within the routine of a company.

What are the stages of the decision-making process?

Decision-making process

As much as there is a lot of experience in the area and mastery of business and people management, it is necessary to have the steps of the decision-making process clearly – and to comply with them!

More than that, understanding how to act in each of them will provide security and contribute to an organizational culture that is always positive internally.

Therefore, we have separated the 5 steps that make up this process.

Shall we check each one?

1 – Problem identification

The initial step is, of course, the identification of the problem being faced by the company.

And here, it must be said that each one of them needs to be solved individually and respected its peculiarities.

Thus, a consistent solution can be applied and be effective from the start – which, let’s face it, is the ideal scenario.

So, therefore, understand that the problem may arise from several sources:

  • for not knowing how to apply an action or standard well;
  • the implementation of a new tool;
  • for a new challenge proposed;
  • to correct something that is not going well, among others.

So, before you start proposing actions, be clear about the real cause of this problem. Understand what and who are the people affected by it.

2 – Diagnosis

The next step in the decision-making process requires more detailed and, of course, equally important work: the diagnosis.

Focus on identifying threats and opportunities, as well as the tails and consequences that relate to the problem.

So, here, the need for numbers comes in again – in addition, of course, to do a close administrative management, which dialogues with employees.

For example, if we talk about a problem diagnosis within a sales department, what numbers on your dashboard show a failure?

You may notice that the conversion rate from one step to the next within the sales pipeline is below what is necessary.

In this case, a simple analysis can solve it. But there are others that need more thorough and time-consuming research and analysis.

But, obviously they need to be done.

3 – List of alternative solutions

Decision-making process

After identifying the problem and making an accurate diagnosis, it is time to list the options that are available.

To do this, consider several factors before listing either option.

Does it fit within the company’s budget? How long will the deployment take? Will major transformations be necessary?

There are many variables within the decision-making process – and therefore it is essential to choose consciously.

Assess with the people involved what may or may not be considered an alternative.

How will each option be reflected in the day to day work? Will it actually solve or problem and / or be able to create a new one?

4 – Decision making

The final word, of course, must be the manager’s. But with the alternatives on the table, you have to decide. Consult people to find out the best way to go.

Take into account the risks, the return, the timing of the company.

Another relevant thing: is this measure focused on the customer, on solving a problem in order to generate more value for him?

This should always be a question to be considered. The concept of Customer First, in fact, should always guide decisions within companies.

5 – Evaluation of decisions

To guarantee that something will really be solved, it is essential – within the decision-making process – to follow up on what has been implemented.

So, going back to the example we mentioned.

If you noticed that the conversion rate between the stages of the sales funnel is low and you understood that you needed the digital transformation in the sector, you need to monitor how the chosen sales system is being implemented and used.

Only then will it be possible to understand whether you have made a correct decision – which will serve as a guideline for the next necessary decisions.

Techniques and tools that assist the decision-making process

Decision-making process

To assist the decision-making process, some techniques and tools also contribute to making this mission more assertive.

Companies that want not only to grow but also to remain competitive and focused on the success of the client increasingly seek techniques that help in correcting problems.

One of the best known is the Ishikawa Diagram – or fishbone. It is a visual tool that serves to solve – together – all kinds of problems.

The SWOT (or FOFA) matrix is ​​equally important at this point and can be used by companies.

This tool helps by giving a complete diagnosis of both the company and a specific sector – which helps to identify possible defects.

Finally, another equally important technique: the BCG matrix, which performs a strategic mapping and serves as a powerful analysis tool.

So, following these steps and using the right tools, the decision making process within your company is no longer a headache.

So, how can we help you?

If you were unsure about the content or want to fix sales problems in your company, talk to a consultant today.

Enjoy and read two articles that will help you have better and better processes within your business.

The first talks about another important technique in the identification of problems in companies, the Theory of Constraints.

The second talks about how the Pareto Principle corrects processes and makes everyday life more assertive in organizations.

Good sales!

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