Handling a business is a very daunting task. You need to manage the employees, tasks, goals, objectives, product/service quality and even marketing. Furthermore, business is well known for tight spots and by tight spots I mean dilemmas, decision making and conclusion drawing.
Decision making greatly affects the progress of your business and might either solidify your business in the market or demolish it. Therefore, it is required to pay proper heed to the decision making algorithms to ensure that you decide what’s best for your business. To assist SMB’s in making the right decisions here are some decision making tools and techniques that might prove beneficial.
This analysis pays close attention to the current problems a business might be facing and then incorporates steps to prioritize the steps that most affects the business in a positive manner. This increases a business’s position among its peers and achieves a lot more in a limited amount of action. This analysis is based on Pairto Principle whose essence is the 80/20 rule. This principle focuses on those 20% actions that will bring about 80% results, thus achieving a lot with minimum action required. For this analysis you need to figure out the root cause of the problems your business is facing and prioritize them with the action that is required. Follow an elimination process eliminating those actions that require too much input and are not providing adequate output.
This analysis focuses on selecting the right alternative from a pool of alternatives. It is a pictorial representation that helps in figuring out what would be the best possible step with the decision to be taken being placed in a square box and from this box connecting lines emanate towards all the possible solutions. Additional aspects can be mentioned along the lines to take a carefully evaluated decision. Outcomes that are uncertain can be circled in and now by choosing one option over the other a final optimum alternative can be chosen to represent the solution of the problem.
Six Thinking Hats
This is perhaps the most effective technique for decision making as it incorporate parallel thinking process to arrive at a solution. It is required to bifurcate the existing functionalities and roles into six different categories namely ‘white hat’, ‘yellow hat’, ’black hat’, ‘red hat’, ‘green hat’ and ‘blue hat’.
- White hat category incorporated all the existing information, just the crude facts.
- Yellow hat category includes the list of all the plus points or benefits.
- Black hat category is where the task is done to evaluate the dangers, problems or pitfalls of a certain strategy.
- Red hat category includes the list of those hunches that you feel might hamper the decision or the task at hand.
- Green hat category embodies the innovative ideas or solutions that can be given a chance for the current problem.
- Blue hat category enlists the control process of a task or certain combatting strategies that should be deployed in order to solve a problem.
The Bottom Line
Using these tools and techniques decision making can become a lot easy and efficient. These techniques are quick, evaluative and carefully devised to ensure that only the best outcomes are provided by them. Pairto analysis aims at maximizing effort along with assisting in decision making. Decision tress are the best method of comparing alternatives and in choosing the correct solution for any problem and Six Thinking hats methodology is the ultimate tool to use if everything else fails.