Home Employees & HRManagement & Leadership 5 Decision-Making Mistakes That Could Destroy Your Business

5 Decision-Making Mistakes That Could Destroy Your Business

written by Business Beetle

1. Emotionally driven decisions

Your emotions will drive the decisions you make today, and your success may depend upon your ability to understand and interpret them. Your emotions will drive the decisions you make today, and your success may depend upon your ability to understand and interpret them.

However, when we’re angry or upset, we’re much worse decision makers. When you have to make an important decision and happen to be in a bad mood, you should hold off.

Instead, wait until you cool down and can think more clearly. It will remove the outside influences and let you think more rationally.

2. Avoiding the decision

While you shouldn’t be hasty when tough decisions arise, sticking your head in the sand and just hoping it will go away isn’t wise either. Often, these things don’t resolve themselves. And procrastinating only causes problems to fester.

For example, if you have two quarrelling employees, it wouldn’t be unusual to want to avoid confronting the issue in the hope they will work it out on their own. However, by avoiding the issue this can often make things much, much worse. Many times hostility between two employees can boil over and affect the morale and productivity of the rest of your workforce.

As well as being uncomfortable or time-consuming, avoiding decisions can also hurt your leadership reputation. Your staff may perceive it as a lack of care or leadership abilities, which can create a lack of respect. This can ultimately mean that employees are less likely to take pride in their jobs or put in any exert extra effort for a leader they don’t respect.

3.Confirmation bias

Anyone who has ever been in a decision-making meeting knows this bias well. Confirmation bias is the human tendency to search for, favor, and use information that confirms one’s pre-existing views on a certain topic. It hurts our ability to keep an open mind and shift our opinion. Confirmation bias is dangerous for many reasons, but most notably because it leads to flawed decision-making.

There’s almost always information that will validate our opinions, no matter how wrong they might be. That means we need to always look for conflicting evidence and, from there, make judgments based on more well-rounded information.

4.Waiting too long.

Some entrepreneurs face difficult decisions by delaying them for as long as possible. For example, if a business owner is considering firing an employee, he/she may postpone the decision because it’s a difficult and may think that the employee’s behaviour may change in the future. However, a destructive employee that is fired three months from now rather than today will have caused three months of extra damage to your company.

5.Not Communicating Decisions

Failure to communicate the what, where, when, and how associated with their decisions. Some good decisions become bad decisions because people don’t understand – or even know about — them. Communicating a decision, its rational and implications, is critical to the successful implementation of a decision.

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