Where decisions tend to go wrong is where information is not complete and accurate, writes Russell Bell.
Photo / 123RF
Where decisions tend to go wrong is where information is not complete and accurate, writes Russell Bell.
Photo / 123RF
OPINION:
So, Tuesday night saw a big decision being made which will impact us all in various ways.
Whether it was a good one or not will be evaluated in the fullness of time, but it is a timely example of the power that decisions carry.
Whether you agree ornot that it was fait accompli that a case of the Delta variant of Covid-19 emerged in the community, a decision has been made which reflects the response strategy.
Some decisions are difficult and others are relatively easy when you weigh up the information and / or opinions of those who are involved in deliberating it.
Decisions are also crucial in business and can have a profound impact on how successful, or otherwise, you and your business become.
And because each of us have different backgrounds and can see things in a different way, we may choose different solutions to the same problem.
So, how do we make the right decisions for our business? Particularly in an uncertain environment.
It's all about knowledge, information and experience which, in turn, hopefully create wisdom.
I also believe in trusting gut instinct, but believe that this is our subconscious processing the information we have based on our experience memory.
Where decisions tend to go wrong is where information is not complete and accurate, or you do not have the experience to recognise a trend or developing situation.
Too often you hear of failures where assumptions were made, or circumstances moved in a way that caught the decision makers out.
I suspect something like this is what happened with New South Wales' response to Delta.
Risk crystallising in this way can be mitigated through having robust information, management processes and advisers with the experience that you may not have in full (you will note that right now politicians everywhere preface nearly every announcement or decision by referring to the advice they receive).
The best decisions are those which come from a position of balance, but the decision and the outcomes are ultimately the responsibility of the decision maker.
Last week I talked with a client about establishing an advisory panel. The panel will be populated by businesspeople with skills and experience which filled or balanced gaps in this owner's experience.
For example, marketing may be an area of weakness so the panel would include a marketing expert.
It's much the same concept as having a business mentor, and if you don't have one I recommend you find one.
Even the smallest amount of advice could be the key piece of information which will transform a potentially incorrect decision into a good one.
Of course, there are always unexpected events that are difficult to gather complete and accurate data about or are near impossible for any adviser to warn you of.
However, even in these circumstances, indicators are generally out there if you look for them (or an adviser may already see the signs and you just need to consult with them).
So it's important that you critically assess the current state of the information and advice which feeds your business decisions.
For example, if you find that you are experiencing a "run of bad luck" in sales, it may be you aren't asking your customers the right questions.
If you have a cashflow problem, it may be your accounting system should have warned you it was coming.
You might already have a number of advisers and you may operate as a team. The quality of information and advice available to you is critical to your success.
Get it right and more often than not your decisions will be good ones.
• Russell Bell is from Zenith Solutions, a Whanganui-based business consulting business.
