A company's decision-making process should not be random; after all, it covers important issues ranging from routine tasks to strategic actions that influence the organization's future.
In practice, there are several ways to make choices without depending on chance: data analysis, reflection, and planning are necessary actions to make decisions that directly impact the company's efficiency, success, and growth.
However, many companies face challenges in decision-making, whether due to poor business management, lack of market knowledge, or simply the absence of well-mapped business processes to identify problems, consider options, and make well-informed choices.
Does your company need help making strategic decisions? Let's dive into the importance of data-based resolutions, the main steps in this process, and how technology becomes a great ally in minimizing risks and avoiding negative consequences.
Importance of prudent decision-making
Strategic management knows that a wrong decision can significantly impact the company, including loss of resources, increased turnover, lack of competitiveness in the market, and much more. This means making deliberate choices that affect daily operations and the company's entire planning.
It's not always easy, and these crucial decisions are only sometimes based on concrete information. Yes, many companies still make decisions based on personal perceptions or pure and simple intuition.
To get an idea of the importance of the decision-making process in a company, let's look at the main benefits:
Strategic guidance: Each choice contributes to defining and implementing the company's strategies in search of sustainable growth. This includes anything from resource allocation to product launches and opening new markets.
Efficiency in operation: Assertive decisions can boost the efficiency of the company as a whole, as it facilitates the identification and resolution of problems in addition to the optimization of internal processes.
Competitive advantage: Companies that make quick and well-founded decisions have a competitive advantage; after all, they can better adapt to market changes.
Greater team involvement: Transparent and objective decision-making processes at the most diverse hierarchical levels promote more communication and collaboration between teams, enabling each person on the team to actively contribute to the organization's growth.
Better relationship with stakeholders: Decisions impact not only the company but also customers, partners, investors, and suppliers.
Risk mitigation: Strategic decision-making allows for the identification of potential challenges and risk mitigation, making the company ready to overcome unforeseen events.
More innovation: Companies that cultivate a culture of proactive decision-making can better identify opportunities, anticipate changes, and innovate products and services.
Decision-making process: primary steps
Of course, depending on the sector and the company's size, the decision-making process may have different stages that vary in complexity. But, in general terms, this decision-making process goes through some fundamental stages:
Step 1 - Identify the problem
It sounds simple, but before making any decision, it's essential to understand the problem or opportunity at hand. In other words, the first step is to define the scope and point the decision in the right direction.
Example: Your company finds that it needs to buy equipment or software to increase team productivity.
Step 2 - Get as much information as you can
Decisions made based on intuition are a thing of the past, even more so with the current competitive scenario in the market. Therefore, seeking facts and information becomes essential for an assertive assessment of the problem and searching for solutions.
For example, your company looks for trusted suppliers, does market research, checks the main features and payment methods, and determines the positive and negative points of purchasing equipment or software the company needs.
Step 3 - Evaluate data and opportunities
Analyzing all the information you have at hand helps you identify patterns and trends, gain insights, and even discover possible solutions to the problem. Furthermore, you can define costs, advantages, and opportunities more assertively with a data-based decision.
For example, in the case of purchasing equipment and software, you'd want to have the financial forecast for the period in hand, talk to the teams about the absolute need for the purchase, and evaluate other options to face the problem, such as team training.
Step 4 - See available alternatives
You will have a range of viable alternatives based on the analysis of data, documents, and information. Each of them must be examined calmly, always considering the company's advantages and disadvantages.
For example, among the available options, you'd want to see which ones meet the teams' demands and the time spent on user learning and support, among other requirements.
Step 5 - Make the most assertive decision
After checking data and other factors, such as the company's goals, objectives, and strategies, you can decide on the best option for your company.
Example: You choose equipment or software to optimize team productivity.
Step 6 - Turn your decision into action and monitor the results
Transforming your decision into action encompasses practical aspects, such as resource allocation, efficient internal communication, and continuous improvement.
Therefore, it's time to evaluate the results after implementation to optimize the future decision-making process.
How does digitalization help in data-driven decision-making?
- With a tool like Qntrl, you can create and document the entire decision-making process, bringing more clarity and organization to the company as a whole.
- Process management software facilitates the collection of relevant data in real time, bringing patterns and accurate information for decision-making.
- With integration with other analysis and management tools, you create a more cohesive and informed process for making decisions.
- Furthermore, with personalized reports and dashboards, you have a complete view of the performance of the most diverse areas of the company, thus facilitating continuous monitoring and evaluation.
Of course, in practice, decision-making is not a rigid process: your experiences in the company's day-to-day operations must also be taken into account along with assessments, information, and evidence.
Implementing technological tools not only optimizes efficiency in the decision-making process but also increases the ability to face complex challenges and seek new market opportunities.
