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Decision Making 101

 


Are you one of the many leaders who are making decisions based on emotions versus facts? Are you weeding through the abundance of information and only using what is relevant? If you are making decisions which will affect the lives of others, you owe it to them to ensure you have all the relevant information.

Our Forward Looking Guide on Leadership discusses decision making and is available on Amazon Kindle. Amazon.com: Daniel W Elliot CPA CGA: Books, Biography, Blog, Audiobooks, Kindle

Enclosed is an excerpt from that guide:

´Your ability to solve problems and make good decisions is the true measure of your skill as a leader.’ (Brian Tracy)

 Whether the problem be an operational issue or ethical dilemma, leaders must be able to analyze the situation using all available reliable relevant information, and make a resolution. In some cases the advise of experts may be required, but in the end the leader must make the final decision and be accountable for the outcome.

 There are various models depicting how to solve a problem, and the following is one for you to consider:

 Steps to Solving a Problem:

       ·        Identify the problem

o   This is where we first realize that we have a problem.

·        Define the problem

o   Further analysis provides us a clearer understanding of the problem, including the root cause.*

·        Assess the significance

o   At this point we decide how significant the problem is, and whether it requires our attention.

·        Acquire all available reliable relevant information

o   There is much information, but not all is reliable or relevant. Ensure the information you consider is complete and accurate.

·        Consider potential solutions

o   From here we look at what options are available to us to solve the problem.

·        Evaluate the potential solutions

o   Each solution has its pros and cons, and each need to be analyzed.

·        Choose the desired solution

o   An option must be selected.

·        Evaluate the outcome

o   We need to ensure the solution solved the problem, and if not, consider the other alternatives.

 *Although all of the steps are important, the one I feel requires additional discussion is the ‘root cause.’ We must clearly understand what caused the problem in the first place, otherwise the ‘fix’ may just be temporary, and we are soon faced with the same problem again. One of my favorite examples is a worn out front left tire on your car, where the others appear to be fine; simply replacing the tire is not adequate as there is a good possibility there is an issue in the car’s suspension causing a misalignment, and not repairing that part will not only result in the problem repeating itself, but may be catastrophic if the part fails all together.

 On a final note, I cannot emphasize enough that expert advise is not only appropriate, it is critical in many situations; these include, but are not limited to: technical, legal, and financial issues.

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