Effective Decision Making Steps for Leaders
Indecisiveness hinders many organizations. When leaders and teams struggle to effectively make, balance, or follow through on decisions, both short- and long-term performance suffers. Effective decision making steps for leaders matters if you want your team firing on all cylinders. But it can be challenging to know when to move ahead, when to ask for help, or when gather more information.
The Higher the Stakes, The More Decision Making Matters
Decision making may be the most critical job of a leader. The higher the stakes, the more decision making matters and the more important it is for organizations to understand and agree to effective decision making steps for leaders. Decisions – who makes them and how they are made – are the basic building blocks of every business.
If you are going to succeed, you need to make the right decisions fast enough, gracefully enough, and consistently enough (often with limited information) to keep the organization moving in the right direction. Just think about it – every positive move and every failed move is the result of a decision that was rightly or wrongly made.
What Our Research Says About Effective Decision Making Steps for Leaders
Based upon our Organizational Alignment Research of 410 companies across eight industries, effective decision making is one of the seven most influential factors in achieving organizational alignment and higher performance. And in case you think alignment doesn’t matter, pay attention: highly aligned companies grow 58% faster, are 72% more profitable, retain customers 2.23-to-1, and engage employees 16.8-to-1
An 8x Difference – Effective Decision Making Steps for Leaders
If you are looking to outperform your peers, be sure decisions are made effectively throughout your organization in a way that balances short- and long-term priorities. The research found:
Effective Decision Making
At the most basic level, good leadership decision making is a three-step process:
Some should be achievable in the short-term (90-days); and some should have a longer time horizon.You will know your priorities are clear enough when the entire team understands them, believes that they are the right ones to move the plan forward, and has confidence that they can be achieved in your unique organizational culture and marketplace.
That means that you need to involve and consult with others. Only then will you be able to make an informed choice and get the buy-in required to get things done.
The Bottom Line
Highly aligned organizations a have a well-established process for decision-making that is understood, accepted, and practiced across all functions. Follow these three effective decision making steps for leaders if you want to outperform your peers.
To learn more about getting aligned, download 7 Immediate Management Actions to Create Alignment with Goals
Download key published insights and tools from industry experts highlighting best practices in the areas of talent, strategy and culture.
Want to know how you stack up against leading organizations? Receive a complimentary benchmarking analysis courtesy of an LSA Expert.
Get up to speed on timely solutions critical to your business. Published by LSA Experts based upon client feedback and key industry trends.
First we identify the key metrics you want to improve. Then we assemble a dedicated team of elite experts who have successfully solved similar problems with similar clients.
Stay up to do date with the latest information on how we help high growth companies align their culture and talent with strategy.
Real world consulting and training approaches from LSA projects, providing insights on how your company can outperform the competition.