Six Foundations of Good Decisions

There are six foundations for making good decisions.

First and foremost is the hard work, and it takes a lot of time, effort, and imagination. Tasks can be delegated, but observation and conversation require you to be where the action is, whether it's an operation theater or a factory.

Second, fill a room with peasants, because, when the choice is tough and there is no clear path forward, a hearty debate can be the best tool you have for uncovering the right solution. The need is to emphasise on a culture of candour in which employees are comfortable expressing their varied perspectives and just as comfortable working together to implement the resulting decision.

Third, conquer the fear of risk. Business leaders can get so caught up in the possibility of losing that they ignore the realities of a situation. The fear of loss clouds their thinking, and they wind up shying away from taking a risk even when the probability of winning big is high. What happens when people at all levels fear taking risks because a bad outcome can hurt the chances for promotion? Entire organizations end up spending enormous amounts of time, energy, and money seeking the safest options rather than those that offer the greatest calculated returns.

Fourth, you should make vision your daily guide. For, without vision your company is likely to become an unguided missile, whizzing here and there without a clue about where the target is or how to hit it.

Fifth, listen with purpose, rather than carefully. Place what you hear in the right context, and fill in the gaps in your own information People engaged in a candid discussion in an environment in which they do not fear retribution will almost always reveal the things that they are worried about or that are most likely to motivate them. Telling the complete story prevents rumours and second-guessing from diverting your team´s energy and efforts.

Sixth, a frank discussion with your team, including the data that went into making your decision, is crucial to transparency. Provide the team with a road map that shows people what to do to execute your decision and also give them measurable milestones, expected challenges, and a concrete goal.

Transparent communication isn't difficult if your decision is based on facts and sound reasoning. But it is too often neglected in the rush to get moving to execute a decision.