Senior executives who rise to the C-suite do so largely based upon their ability to consistently make sound decisions. However while it may take years of solid decision making to reach the boardroom it often times only takes one bad decision to fall from the ivory tower. The reality is that in today’s competitive business world an executive is only as good as his/her last decision.

Nobody is immune to bad decisioning…We have all made bad decisions whether we like to admit it or not. I have either been a principal owner or senior executive since I was in my mid 20’s and have generally been highly regarded for my decision making ability. That being said, I have also made my fair share of regrettable decisions. When I reflect back upon the poor decisions I’ve made it’s not that I wasn’t capable of making the correct decision, but for whatever reason I failed to use sound decisioning methodology.

The complexity of the current business landscape combined with ever increasing expectations of performance and the speed at which decisions must be made are a potential recipe for disaster for today’s executive unless a defined methodology for decisioning is put into place. If you incorporate the following metrics into your decisioning framework you will minimize the chances of making a bad decision:

1. Perform a Situation Analysis: What is motivating the need for a decision? Who will the decision impact? What data, analytics, research or supporting information do you have to validate your decision?

2. Subject your Decision to Public Scrutiny: There are no private decisions…Sooner or later the details surrounding any decision will likely come out. If your decision were printed on the front page of the newspaper how would you feel? What would your family think of your decision? How would your shareholders and employees feel about your decision? Have you sought counsel and/or feedback before making your decision?

3. Conduct a Cost/Benefit Analysis: Do the potential benefits derived from the decision justify the expected costs? What if the costs exceed projections and the benefits fall short of projections?

4. Assess the Risk/Reward Ratio: What are all the possible rewards and when contrasted with all the potential risks and are the odds in your favor or against you?

Decisions can, and usually will, make or break an executive. Those executives that avoid making decisions for fear of making a bad decision will rarely rise above mid-management, and those that make decisions just for the sake of making a decision will likely not last long. If you develop the appropriate blend of a bias to action with an analytical approach to decisioning your stock as an executive will surely rise.

Mike Myatt is the Chief Strategy Officer at N2growth. N2growth is a leading venture growth consultancy providing a unique array of professional services to high growth companies on a venture based business model. The rare combination of branding and corporate identity services, capital formation assistance, market research and business intelligence, sales and product engineering, leadership development and talent management, as well as marketing, advertising and public relations services make N2growth the industry leader in strategic growth consulting. More information about the company can be found at http://www.N2growth.com

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