What is the importance of decision making in a company?
Posted: Tue Jan 07, 2025 8:35 am
Decision making is the engine that drives a company forward. Every choice, big or small, has a direct impact on its trajectory. Here are a few reasons why it is so crucial:
Set a direction – Decisions define where the company is headed. What products or services will it offer? Who will its target audience be? How will it differentiate itself from the competition?
Helps allocate resources : Deciding how to allocate them (time, money, staff) is essential to maximizing return on investment.
It is useful for adapting to change : the ability to make quick and effective decisions is key to adapting to new trends, technologies and challenges.
Enables risk assessment : Evaluating options and choosing the one that minimizes potential risks is critical to the company's survival.
Aim for continuous improvement : By evaluating new ideas and opportunities, companies can find ways to improve their products, services and processes.
Motivates the team : a team involved in the decision-making process in a company feels more committed and motivated; translating into greater performance and productivity.
A research report published by Harvard Business Review and Thoughtspot revealed that 87% of business leaders think their organization will be more successful when employees are empowered to make important decisions in the moment.
Therefore, the clearer your employees are about the decision-making process in a company and the tools necessary to reach them, the greater the impact on operational agility, innovation and adaptability.
How to make decisions in a business?
To do this correctly, it is essential to consider the importance of making decisions based on data . Having numerical information to support the hypotheses allows you to reach a more informed and solid conclusion.
Although it may seem logical, in reality, this practice is not so common. An analysis carried out by Forrester revealed that 41% of the organizations evaluated faced difficulties in converting their data dominican republic phone data into effective decisions.
Trust the data generated by your company and use it to make the right decisions!
Entrepreneurs learning about the importance of decision making in a company
What are the types of decision making in a company?
According to the level of impact and the actors involved, the decisions made in a company are classified into 9 categories:
Directives
These decisions are made at the executive and management levels of an organization, having a significant impact on the entire company. They are characterized by involving changes or adjustments to plans, objectives and events of great importance.
Example : selecting a candidate to lead a specific area of the company.
Operational
These are aimed at the company's daily processes . They are carried out at all levels of collaboration to ensure proper functioning of their respective areas.
Example : Updating technological and hardware equipment for a specific project.
Strategic
They involve extensive planning and often involve multiple participants, requiring an investment of time due to their relevance to the organization.
Example : develop strategic planning for a new year and establish objectives and key results (OKR) for all areas of the company.
Set a direction – Decisions define where the company is headed. What products or services will it offer? Who will its target audience be? How will it differentiate itself from the competition?
Helps allocate resources : Deciding how to allocate them (time, money, staff) is essential to maximizing return on investment.
It is useful for adapting to change : the ability to make quick and effective decisions is key to adapting to new trends, technologies and challenges.
Enables risk assessment : Evaluating options and choosing the one that minimizes potential risks is critical to the company's survival.
Aim for continuous improvement : By evaluating new ideas and opportunities, companies can find ways to improve their products, services and processes.
Motivates the team : a team involved in the decision-making process in a company feels more committed and motivated; translating into greater performance and productivity.
A research report published by Harvard Business Review and Thoughtspot revealed that 87% of business leaders think their organization will be more successful when employees are empowered to make important decisions in the moment.
Therefore, the clearer your employees are about the decision-making process in a company and the tools necessary to reach them, the greater the impact on operational agility, innovation and adaptability.
How to make decisions in a business?
To do this correctly, it is essential to consider the importance of making decisions based on data . Having numerical information to support the hypotheses allows you to reach a more informed and solid conclusion.
Although it may seem logical, in reality, this practice is not so common. An analysis carried out by Forrester revealed that 41% of the organizations evaluated faced difficulties in converting their data dominican republic phone data into effective decisions.
Trust the data generated by your company and use it to make the right decisions!
Entrepreneurs learning about the importance of decision making in a company
What are the types of decision making in a company?
According to the level of impact and the actors involved, the decisions made in a company are classified into 9 categories:
Directives
These decisions are made at the executive and management levels of an organization, having a significant impact on the entire company. They are characterized by involving changes or adjustments to plans, objectives and events of great importance.
Example : selecting a candidate to lead a specific area of the company.
Operational
These are aimed at the company's daily processes . They are carried out at all levels of collaboration to ensure proper functioning of their respective areas.
Example : Updating technological and hardware equipment for a specific project.
Strategic
They involve extensive planning and often involve multiple participants, requiring an investment of time due to their relevance to the organization.
Example : develop strategic planning for a new year and establish objectives and key results (OKR) for all areas of the company.