Why Is Decision-Making so Important?
Decision-making in business is important because there are consequences to making the wrong decision. When managers are making decisions on behalf of the company, it is important that they weigh their options because poor choices can result in legal, financial or brand issues.
To make better decisions, most managers start by defining the problem. Defining the problem removes distractions that are irrelevant to the decision. Once they have a clear understanding the problem, they can determine alternate ways of approaching the problem. Implementing the best alternative is always the course of action, but the best alternative looks different for many companies. After implementing the solution, managers measure their choice to ensure they consistently make wise decisions.
The same decision process managers use works for day-to-day scenarios as well. Irrelevant “noise” distracts people during the decision process, making it hard for them to make a decision. Using the decision process, people who consistently make poor decisions can improve their track record. The problem must first be defined for proper framing. Doing this step incorrectly increases the chances of solving the wrong problem. Using the decision-making process consistently, anyone can make better decisions; otherwise they continue to make the same poor choices.