We are often stuck while making tough decisions. Even after doing a good amount of analysis and data-crunching. Even after looking at various options and data supporting each option. Even after talking to people for guidance. Yet, its somehow difficult to move forward and take that final step of deciding.
There are some upsides to taking time to make decisions. There is access to more information. And there is always more information available. There is time to do more analysis on the information collected. There is time to talk to more people for their views. And multiple views often give valuable perspectives. Theoretically we’ll make better decisions if there is more time to decide. Yet, that doesn’t happen. One, to much elapsed timeand too much analysing can cause ‘analysis paralysis’. Too much information, too much analysis and you get sucked into a morass of indecision. And that can make you miserable.
The other factor to consider is that delayed decisions can cause critical problems and cost you money. It can bring your business to a grinding halt while it waits for that critical decision. It can also demotivate employees waiting for your decision. Especially if the employees are not involved in the decision making. Worst of all, the pending decision resides in the back of your head till you decide. It takes up mind space and can affect all the other smaller decisions that you need to make.
So, when do you know that you’ve spent enough time sitting on a decision? The correct answer is – as soon as you’ve sourced enough information and performed enough analysis. But if we aren’t so great at knowing when we’ve reached that point. Part of the difficulty in making a tough decision, is knowing the point at which there’s enough information.
There aren’t any objective parameters available to decide when we have enough information and performed enough analysis. Yet, there are some subjective indicators that you’re taking too long in your decision making. Indicators that will tell you that time you take a decision.
And the indicators are
#1: The hunt for perfection
We’re all committed to quality and accuracy. Especially for decisions which have long term implications, the temptation to go that extra step to get perfect information is immense. And it’s often worth exercising diligence in sourcing information and performing analysis. Trouble is that information will never be perfect. We live in a dynamic environment. There is always something changing. It’s futile to keep postponing a decision till all ‘changes’ have been incorporated. Till all information is in a static state. Equally futile is waiting for information from that ‘one more’ source. Granted, multiple sources should be used while gathering information. Yet, its important to put some limits on the number of information sources. After making sure that those information sources are a good cross-section of stakeholders. And that the information you are getting from these sources is authentic and reliable.
By waiting for perfection, we are often too late in making a good decision.Making decisions with incomplete information is the job of a leader. Often, you’ll only know if the decision was right long after it was made. So, if you find yourself waiting for those additional pieces of information which will make your analysis ‘perfect’, you know you are stretching your decision making.
#2: The fear of looking stupid
Ask yourself if the reason you’re not making the decision is a fear of looking stupid. We often postpone decisions which can have an impact on our personal brand. For instance, you could be afraid that your decision to buy new equipment might not work out. And people might point fingers at you for your faulty decision.
The other important thing to be careful about it our egos. There’s little place for our ego while making business decisions. Once ego comes in, it’s easy to get paralysed into inaction. It’s important to keep asking yourself during the decision-making process, if the decision is getting postponed due to a potential hit to your image.
#3: The anxiety of hurting people
All of us want to be seen as fair. And look at the consequences of our decisions on various stakeholders. For instance, you might worry that an employee will get hurt if you decide to pay significantly different incentivesto high and low performers.
It’s good to think of the consequences of our decisions. Yet, we often postpone the pain by being worried of every consequence. Most decisions have a negative consequence on some stakeholders. So, look at the most significant immediate term consequences of your decision. And compare to the long-term impact on stakeholders. Often, worry about short-term negative consequences prevent thinking on long-term positive consequences.
Closing thoughts
Defence personnel are taught to make decisions with incomplete information. A war does not allow you the luxury of time and information to make decisions. Often, your decision determines whether a soldier under you lives or dies. You might be lucky to have 50-60% of the information you need to decide.Thankfully, it’s not that stark for a business leader. Yet, making tough decisions is equally important for effective leaders.
The importance of faster decisions is underscored by the success of Satya Nadella at Microsoft. Faster decision making has been one of the key aspects of his management style. And he’s stated it to be a focus area for Microsoft in multiple interviews. He quickly decided to focus on Microsoft’s cloud business after taking over. And that business is now a money-spinner. Even the decision to divest the Nokia business and stop focusing on phone hardware was a quick and seemingly correct decision. From the time Nadella took over in 2014, Microsoft’s share price has increased by 330%. Microsoft’s valuation has grown from about $300 billion to more than a trillion dollars.
Decision making is the burden of responsibility that a leader needs to shoulder. So, decide to decide quicker. And don’t worry if some of those decisions turn out to be wrong. Its often better to decide quickly, fail quickly and move on with things. As Steve Jobs said
You can’t connect the dots looking forward; you can only connect them looking backwards. So you have to trust that the dots will somehow connect in your future. You have to trust in something–your gut, destiny, life, karma, whatever. This approach has never let me down, and it has made all the difference in my life.
In other words, Steve Jobs was aware that he didn’t know everything while making decisions. But we still need to continue making decisions. The dots will connect at some point.
