In our life, we are challenged to make decisions daily. Be it a small decision or a big and important decision we still have to think before making one. Hence, some decisions are more important than others but ultimately, they are a determining factor for the success and failure of our company or business.

Have you thought about the times have you had to decide to reach your goals? The time when you had to make vital decisions for the continuity of your company? How many times have you found yourself in the same dilemma? The questions about your decision are all the same, What will be better? And if I’m wrong, will I lose everything? Therefore, life, in general, is the result of all the decisions you make.

However, remember that if you do it properly, you will have new options, opportunities, and possibilities that will bring you closer to achieving your goal.

I will tell you an anecdote told by Peter Drucker, American consultant, author and trainer of Austrian origin considered the creator of the foundations of the modern company, to explain what is to make an effective decision:

He says that some years ago, he attended a meeting of General Motors directors in which he made an impeccable presentation on an important issue. And the presentation was so good that he had no objections, everyone agreed including the Director-General.

Suddenly, the Director got up and said: “Since you all agree, the meeting is postponed for a month; this way you will have time to analyze the situation with tranquility”.

Was it an effective decision? Experience says yes. In the absence of adversaries or contrary ideas, new and innovative options are lost. Then we should think about what reasons show that the idea is NOT good.

Following are the seven ways to make smarter business decisions:

1. Examine the Whole Picture

You should examine the whole picture, instead of focusing on the brighter or obvious. With the help of Corporate management software, you can manage your business and organize your business projects efficiently.

2. Practice Full Attention

Being more observant is key to making intelligent decisions. Mindfulness is a great way to learn to focus on the entire environment and sharpen your ability to pay attention to the details.

Hence, mindfulness helps you “improve by opening your eyes to what you might otherwise overlook.”

3. Count on Someone Who Challenges You

Whether at home or work, ask someone to test you. This person can help you question your prejudices and with this strategy, you can make sure that you have gathered enough information and not relying on simply one piece of data.

4. Challenge the Experts

We usually put the experts on a pedestal and take their sayings as the holy word. Experts are only human and are prone to make mistakes.

So what if your decision requires an expert’s opinion, now what can you do?

Firstly, find out if it is influenced by a particular product, ask directly if you have any interest or any kind of benefit to gain.

Secondly, make sure to stay away from the experts who are arrogant and proud. Arrogance cannot be compared to the competition; In fact, research has shown otherwise. On the other hand, look for experts who are open-minded and not guided by the ego.

Lastly, it's better to become your expert if all options are exhausted. Do extensive research and read up on how to make smart decisions. In this way, you will know what to ask, and you will understand the answers and recommendations of the experts.

5. Importance of Data in Smart Decision Making

While data analysis is very important, but it is not everything when it comes to decision making. More relevant is the combination of data use, administration and processing tools, as well as analysis techniques with the results they derive.

Similarly, we must consider non-quantitative issues aswell. Such as the ability to analyze the environment and the experience of our own and the other players in the market. In other words, you have to analyze data seeking good information and knowledge. These three levels lead us to a better understanding of the reality in which an organization operates. This means decisions based on the existence of dynamic conditions and capacities to adapt in one way or another.

On the other hand, several situations occur both in the environment and within the company that is not necessarily quantified. Do not forget that you need to have the ability to generate the required information. This implies a lot of expertise to know what type of information should be used, how it should be used, and how it will be interpreted at the end of the day to make an intelligent, comprehensive and global decision. You also have to understand the potential capabilities of the company itself, the competition and the market.

It is important to differentiate between relevant information and non-relevant information for decision making. One key thing to understand is that the business environment is dynamic, it's constantly changing. For example, what may work for my company today may not work tomorrow. The technology or technique we use today might become obsolete in the future. What once represented an opportunity or threat to the company itself may not become a company’s strength or a weakness tomorrow. The environment must be understood, not only from the static point of view but also, from the dynamic point of view.

6. Knowing Competitors

Intelligent and strategic decision-making is extremely important in a company since it involves the analysis of data and the reading of the environment, where the organization knows itself, both inside and out. But it is also important to know what are the capabilities of the competition and the potential of the market. A company that does not know the competition cannot have intelligent, structured and comprehensive decision-making.

7. Commercial intelligence

Commercial intelligence is another key to decision making, although it has many nuances and ways. For example, it is important to analyze competitor’s prices, taking into account the fact that certain prices are set does not mean that they are correct. So, if we make decisions around the wrong decisions of our competition, we will also make unsuccessful decisions.

Finally, it is important to understand the premises to drive our strategy within the company, those of our competition and the market. Therefore, we must understand what are the components and variables that affect the environment and also what are the trends within it.

Conclusion

Making smart decisions takes time. To find a creative solution, the opposite opinions are considered. Moreover, the pros and cons of a certain decision have to be looked upon before finalizing the best option. Smart decisions are made by understanding the situation, the reality and, above all the people. This requires opinions, discrepancies and time to analyze the alternatives. Therefore, Making decisions is not an easy task. Empower yourself to be a better observer, find opposite information, ask the experts, and become an expert yourself.