11/ 30/ 2007
by Shannon McRae
Why a precise approach to decisionmaking produces the best results
You've heard the story of the tortoise and the hare--slow and steady wins the race. As it turns out, the famed fable is a great way to approach decisionmaking, too. Even though you might be tempted to make snap judgments so you can move on to the next fire, stepping back and thinking hard about your decisions is better for business.
"I can make quick decisions when needed, but when something is major, you have to take the time to analyze it as much as you can," says Bernie Rockovich, owner of Tamaqua, Pa.-based Remaly Manufacturing Company Inc., a metal perforator and fabricator business founded in 1865.
Rockovich sticks to these steps to make the smartest decisions for his family-owned business:
Step back. "You have to look at the whole picture," Rockovich says. What may be the best decision for one aspect of your business might not translate as well to the entire company. Having a good understanding of long-term goals is helpful. In order to plan for the future, "you have to know where you want to go," Rockovich says.
Consider your information. Though it might be one of the most time-consuming steps in the process, gathering the facts is crucial to good decisionmaking. You can't make a sound judgment if you don't understand the problem you face. If you have a tendency to rush, slowing down to examine all the data and feedback might be a challenge—but it's necessary.
Consult others. Rockovich rarely makes a big decision without talking to his managers first. "I'm the last word among equals," he says. If you're not fortunate enough to have managers you can trust, get feedback from your spouse, a friend or fellow business owners. Talking about your options with others often makes it easier to discern big decisions.
Make the decision. After you've done the background work, settle on a conclusion. Deliberating forever is pointless. "If you can't make a decision, you're a bad leader," Rockovich says.
Reevaluate. "Even good decisionmakers make bad decisions sometimes," Rockovich says. To avoid wasting time and resources, constantly monitor your choices. If what seemed like a good idea at the time turns out differently than you expected, be willing to rethink your options. "You can't put on blinders and say, ‘I made this decision so we're sticking with it,' " Rockovich says.
"It's important to admit when you're wrong."
