You cannot separate leadership from decision making. Every leader has a deep understanding and a deep perspective of what needs to be done. He/she is held accountable for a number of things on a daily basis. Some decisions can make or break a CEO. It's not uncommon that a CEO resigns, or that a CEO is fired. A few weeks ago I read the news that the CEO of Tumblr resigned and that the reason for Facebook's low initial IPO is Morgan Stanley. That's just some of the highlights of awful business decision making in May 2012.
A minor mistake in the shoes of influential indivuals can cost you a fortune and sometimes even your career. I always have this in mind and everyday at work I visit the office of one of the Managing Directors of Mergers and Acquisitions here at Rothschild (yea I know sounds pretty crazy), just to read this (see image below). He has it on his guest table. I guess for them to read it as well. I look at it daily just to think about the decision maker that I will be tomorrow and remind myself on how I will approach situations that I'm placed in.
We makes decisions everyday, whether we want to or not. It's part of our daily lives. Think every decision through before it costs you more than you imagine, and that includes more than just business ones. I personally never make decisions when I'm emotionally vulnerable ie. angry, emotional or in a bitchy mood. That's just never the time for me. Done done it and learned.
Tips on decision making:
- Identify the purpose of your decision. What is exactly the problem to be solved? Why it should be solved?
- Gather information. What factors does the problem involve?
- Identify the principles to judge the alternatives. What standards and judgement criteria should the solution meet?
- Brainstorm and list different possible choices. Generate ideas for possible solutions.
- Evaluate each choice in terms of its consequences. Use your standards and judgement criteria to determine the cons and pros of each alternative.
- Determine the best alternative. This is much easier after you go through the above preparation steps.
- Put the decision into action. Transform your decision into specific plan of action steps. Execute your plan.
- Evaluate the outcome of your decision and action steps. What lessons can be learnt? This is an important step for further development of your decision making skills and judgement.
Tips Source: www.time-management-guide.com