When facing the need to make a decision, how do you decide which way to go? Amidst the everyday hassles and ordinary decision making of day-to-day operations, many contractors allow themselves to be overwhelmed when it comes to decisions that might affect their company’s future. They allow themselves to become paralyzed. Worried about making the wrong decision, they make no decision, freezing organizational progress until a new direction is set.
Decisions Decisions
- Which software package should I buy?
- Should I switch equipment brands?
- Should I raise prices?
- Should I implement performance pay?
- Should I wrap my trucks?
- Should I hire a salesperson?
- Should I get out of the truck?
- Should I invest in a new building?
These are just a few of the decisions that all contractors run into. Some contractors seem to wade through the options, decide quickly, and move forward. Others hesitate. They want to make the “right” decision.
It’s understandable why they might hesitate. According to Matt Gavin from the Harvard Business Review, “A survey of more than 750 companies by management consulting firm Bain found a 95 percent correlation between decision-making effectiveness and financial results. The data also showed companies that excel at making and executing decisions generate returns nearly six percent higher than those of their competitors.”
Decision-making effectiveness means making the right decisions. It also means making a decision in the first place. When the path forward diverges, make a choice.