Question: Lately I’ve been faced with some tough decisions. I struggle in this department. How can I make this easier?
Answer: Entrepreneurs by definition have to make a lot of hard decisions. Do we add a new product line or not? Should we raise our prices? Should we fire a client? Can we afford to buy a new piece of expensive equipment? All of these decisions are weighty for a reason. They could have adverse consequences if we’re wrong about what we decide.
Life is full of tough calls. Whether in our business or personal lives one factor that makes decisions hard is a little thing called emotion. The more we can eliminate emotion from our decision making process, the more likely we will be to turn the tough call into the right call. Without emotion we can then turn to a factual approach in this process.
Something that has worked for me over the years has been the use of a decision tree. When I have to make a complex or difficult decision I draw one or more lines down the page. At the top of each column I write a decision that I could make to address a particular situation. There might be two or three possibilities – maybe even more. From each decision I draw lines with boxes underneath. We all know that when decisions are made there are consequences. These boxes contain the consequences. By laying out all of the decisions and the various potential consequences I am able to assess the probability of outcomes and determine which yield the best result with the lowest risk. Doing this insures that emotion remains on the sideline.
Some people say, “Follow your gut instincts.” So you may ask, isn’t gut instinct an emotion? Actually gut instinct is the result of experience. There’s no such thing as pure gut instinct that isn’t based on some level of experience. And this experience can be developed by making decisions over and over utilizing facts and decision trees. Eventually you just know what to decide because you’ve done it so many times. But a strong factual foundation was laid early on.
We can all make the tough decisions with ease when we take the emotion out of the equation. By turning to an examination of the facts we are able to logically figure out what steps to take. And after we do this long and often enough, we develop strong instincts that enable us to act quickly and decisively.
This blog is being written in tandem with my book, “An Entrepreneur’s Words to Live By,” available on Amazon.com in paperback and Kindle (My Book), as well as being available in all of the other major eBook formats.