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Optimise decision making process

Optimise Your Decision Making

How do some of the world’s most influential CEOs make decisions?

It varies. Jeff Bezos analyzes decisions from the point of view of his future self.  WPP’s Sir Martin Sorrell prefers to gather insights from a diverse group of people and create a “balance sheet” before making a decision. Meanwhile, veteran CEO Lars Rebien Sørenson tries to consider both qualitative and quantitative variables, such as financial metrics and company values, when faced with a tough choice.

In spite of their decision-making differences, these CEOs share something in common: They deliberately apply a decision-making process that is conscious, rigorous and entirely unique to them as individuals.

Data from Vistage Research indicates that’s no accident—and that it doesn’t just apply to big-name CEOs from large, complex organisations. After spending years studying the decision-making practices of CEOs from high-growth, small and midsize businesses across diverse industries and geographies, we’ve found that the best-performing companies are led by CEOs who have a thoughtful and conscious approach to decision-making. We’ve also found that these top decision-makers integrate instinct, judgment and perspectives when making a complex, high-stakes decision. This core competency leads to what we call “Optimised Decision Making” (Figure 1).

Here’s how these three elements work in practice, and how you can use them to build and optimise your decision-making process.

From integration to optimisation

For the sake of clarity, let’s explore the different roles of instinct, judgment and perspectives in the decision-making process.

  • Instinct is your gut reaction to a situation or stimulus.
  • Judgment is about applying data and experience to analyze a situation.
  • Perspectives is about seeking external expertise that can expand, influence or change your point of view.

There’s a correlation between the importance or complexity of a decision, and the value of applying instinct, judgment and perspectives to your decision-making process. When you’re facing a simple decision (e.g., ordering office supplies), you only need instinct to arrive at an answer. For more complex decisions (e.g., making a new hire), instinct plus judgment can lead you to a good choice. In the case of complex, high-stakes decisions (e.g., entering a new market), it’s best to integrate instinct, judgment and perspectives.

Integration doesn’t mean adding these variables together. It means allowing for constant interplay between different or opposing ideas, opinions and directions; it means negotiating between your gut and brain, data and opinion, your views and others’ views. Reaching this state requires discipline, self-awareness, vulnerability and an openness to new ideas. It can be helpful to ask yourself questions such as, how strongly do I believe what my gut is telling me? How much weight should I place in my own experiences versus those of others? To what degree do I know—or don’t know—what I don’t know?

CEOs are in the business of making decisions, and this process sets you up to make better ones. However, mistakes happen. If you end up making a bad choice, use it as an opportunity to improve your judgment and draw from the experience next time you have to make a decision. Regardless, have the confidence to say: I applied a thoughtful process to this decision. I made the best choice with the information that I had. And if I commit to this decision-making process, it will ultimately lead to better outcomes for my organisation.

This article was originally published in Inc. Magazine


Joe Galvin

About the author: 

Joe Galvin is the Chief Research Officer for Vistage Worldwide. TEC members receive the most credible, data-driven and actionable thought leadership on the strategic issues facing CEOs. Through collaboration with the Vistage community of experts and curation of the highest quality content, TEC members benefit from impactful business research specific to small and midsized business (SMBs).

How CEOs are keeping pace with the new world of work

Preparing to thrive: How CEO’s are keeping pace with the new world of work

The business landscape has been evolving rapidly over the last 10 years with technological advancements, disruptive business models and changing skillsets fundamentally altering the way organisations operate.

The Q1 2018 Confidence Index explored how leaders perceive, and are managing, the changes in the business environment. We found that while some leaders are ready to embrace what the future has to offer including faster growth, continuous innovation and essential new skillsets, many have yet to turn their concern into action to ensure their businesses prosper in this new environment.

Download the Full Report:

Cyber Support not top of mind for Australian CEOs

Since the Australian Privacy Act’s introduction 30 years ago, the dramatic evolution of technology has created extraordinary changes, challenges and opportunities in the way personal information is collected and used in Australia.

When asked specifically about cyber security threats, the majority of CEOs are only moderately (31 per cent) or somewhat (34 per cent) concerned. In terms of measures taken to protect data, nearly half of CEOs (44 per cent) do not use cyber security experts and just 19 per cent of CEOs outsource all cyber security management to specialists.

Follow the link below to find out more…

 

CEOs hit the ground running, but need to future-proof for long-term success

Growth, hiring, and effective decision making were the key challenges for Australian CEOs during 2017. Now with 2018 in full swing; technology, culture and productivity will be the pressure points that force CEOs out of their comfort zone this year.

That’s what the findings of the Quarter 4 2017 TEC Confidence Index show, but how leaders adapt and overcome their unique business challenges is set to be no different.

Business forecast upbeat

The year is off to a great start with CEOs around Australia optimistic about the future, with growth firmly in their sights. Sales, profitability and headcount are all expected to see an increase in the next 12 months.

It seems the strong economy is lifting confidence and creating a stable environment for growth. The NAB Quarterly Business Survey revealed that in December 2017, business confidence increased to its highest level since July 2017[1]; aligning with our findings that reveal CEOs anticipate economic conditions will improve in the next 12 months.

CEOs get their house in order 

Australia’s leaders know that growth will only come if the business is set for success. The three key decisions CEOs will be making this year relate to strategy, business processes and culture.

Strategy including planning, succession and mergers and acquisitions are the number one priority for business leaders as they seek to develop strategies which will help them evolve and adapt to external influences.

The second area of attention is optimising business processes, including sales, operational efficiencies and managing customer expectations. Its clear leaders understand that creating a strong foundation will help leverage growth and boost productivity.

Finally, HR decisions continue to weight heavy on the minds of business leaders; with culture, productivity and hiring at the forefront of decision making.

By identifying the areas of the business that require the most attention, organisations can ensure appropriate processes are in place and working seamlessly to boost growth.

Upskilling trumps hiring new talent

The skills shortage and the war for talent continues to be an issue for leaders. In Quarter 3 2017 business leaders focused their efforts on boosting wages to attract skilled workers, however this quarter they’ve changed tact.

CEOs have decided to prioritise upskilling their current workers in 2018. By developing the skills, ability and experience of existing employees, leaders hope to implement a sustainable approach to help achieve business growth.

The big business threat

The new Mandatory Data Breach Notification laws means all businesses must report any data breaches, whether perceived or confirmed, to authorities and the general public.

It’s therefore surprising that 37 per cent of organisations do not have a cyber security strategy in place that’s communicated to executive leaders.

This is especially concerning following the release of a recent report from PwC which reveals 89 per cent of Australian CEOs cite cyber threats as the greatest risk to their business.

As technology, innovation and disruption continue to change the corporate environment CEOs must develop new strategies to keep pace and stay ahead. The Executive Connection remains dedicated to supporting leaders as they make decisions that positively impact the business in the short and long term.

 

Download the full report now 

The (r)evolution of business

 

The combination of globalisation and the dizzying rate of technological advancements means that the corporate world is on the brink of a Fourth Industrial Revolution.

At a luncheon recently, The Executive Connection discussed how this new environment has evolved and how its challenging leaders to rethink traditional revenue streams.

The catalyst of this revolution has been the increase in the volume of international trade and cultural interaction that we’ve seen in recent years. This means that goods, services and ideas are flowing across borders now more than ever before.

Ainkaran Krishnarajah, Director, Strategy, Optus summed it up perfectly when he said, ‘Established enterprises want to grow and innovate in new areas but are challenged by the drug of traditional revenue streams and profit margins, which steers thinking closer to the core and to shorter term objectives.’

The scale and force of change is impacting businesses across all industries and as a result, is driving companies to reassess whether their current business model is now the best approach; from processes to people the shift in the landscape is fundamentally changing the way businesses operate.

Not only does this challenge organisations to rethink how they structure their workforce, but also the way they approach their business processes. Companies with inflexible structures will struggle to compete and the knowledge economy will see skill diversity triumph.

Businesses that recognise the need for change and react accordingly will ensure they’re building a business ready for the future of now.

Download the whitepaper on ‘The Agile Workforce’ now 

 

The key to successful change management for CEOs

Throughout Fortune 1000 companies, change management has been estimated to only have a 50 percent success rate. Some estimates even place success rates at as low as 20 percent.  Acquisitions, mergers, down-sizing — all of these are critical events expected to happen throughout the organisation. With the fast-paced evolution of technology, employees will experience change constantly. Whether it’s the introduction of a new service offering or implementation of a sales tool, the success of change within an organisation often lies in the hands of its employees. Change is inevitable, but successful change can be evasive.

Transparency and consistency

More than anything else, employees value an open line of communication with upper management. When employees believe that they can easily reach out to the management team, they become 54 percent more likely to be engaged. On the other hand, when employees do not feel that their management is open and approachable, engagement is only 2 percent, while 65 percent are actively disengaged.

All of this underscores the importance of transparency and consistency. Employees are concerned about the ramifications of changes at work as it can impact their lives. Organisations may be concerned about expenses and income, but employees worry more about how it can impact their families, their health, and their personal time. As this change occurs, this type of uncertainty can translate into poor work performance.

Before, during, and after change, communication needs to remain active and transparent. Often, this will require a communication management plan.

Introducing employees to the change

The initial communication between you and your employees will set the stage for further interactions. Organisations must be able to communicate change clearly, honestly, and empathetically. They must explain why change is occurring and how it will be occurring.

Everyone absorbs information differently, as well as at different rates and this is something you need to consider. Although you can communicate the mechanics of the change in multiple ways, it is best done face-to-face as an announcement or in a meeting. You’ll need to highlight why this is necessary, how it impacts you, and more importantly, how it impacts them. Be transparent about the potential effects and address their concerns right away by outlining your contingency plans. At the end of the meeting, send out a wrap up email to solidify the discussion and highlight important points clearly.

At the beginning of the change management process, CEOs must not only clearly communicate the facts of the change to their employees, but also give employees information about how to further connect with their supervisors and discuss their potential concerns.

Communicating the benefits of change

At all levels of an organisation, concerned parties will be wondering why the change is occurring. It’s imperative that stakeholders understand the direction that the company is headed in, as well as upper level management. Don’t overstate or over promise. Instead, inspire, motivate, and be honest.

Benefits should always be emphasised that may directly or indirectly impact employees. Remember that information will trickle down from the top. Apart from company-wide communications, information will transfer from executives to managers and from managers to employees. Each time, some of that information may be lost to misinterpretation and only the major talking points will remain.

The organisation as a whole can transition more smoothly towards change if everyone views it as a positive experience. If individuals within the organisation feel that change is unnecessary or even potentially harmful, they will be less eager to participate.

The impact of change

In addition to the positives, you also need to be realistic about the negatives. Part of being a leader involves quickly and directly addressing issues that may arise before rumours circulate and they go out of hand. Don’t try to hide the negatives; if this is what will happen, it will come out eventually. Be honest and empathetic and let all employees know what they are in for. It is important to build an atmosphere of trust with your employees. They will be better prepared for the negatives to come and will most likely weather through it if they are properly advised ahead of time.

Employees understand that negative issues can arise. They simply need to know that they are under solid, confident, and honest leadership. By being honest, you can inspire your employees to work harder. Discuss the complexities of the change and what they will have to endure, and then tie it into the rewards and benefits that they can expect as soon as the change is complete.

Prepare your contingencies in advance

Not all negatives and drawbacks are certain. There are a number of complications that could arise that must be planned for. Communicate these potential complications as well as the contingencies in place to address them. All parties involved will rest easier knowing that their concerns are being addressed, and they will be better prepared should these possibilities become a reality.

Open lines of communication are important: if there are contingencies that you have not considered, employees and management must feel as though they can report them to someone higher up and have them addressed. This is critical to success, as it ensures that employees will feel comfortable addressing any potential blind spots.

Following up after success

Your job isn’t complete after the change has taken place. You must also make sure to celebrate the success. You owe it to the employees to reward them for their hard work and trust. The next time change arises throughout your organisation, your employees will remember this and be more willing to pitch in.

Organisations able to manage change successfully are 350 percent more effective than their peers. Managing organisational change is often a matter of knowledge, skill, and experience. With a tremendous number of moving parts, change management requires both logistics and social skills. If you want to improve upon these skills, you may need the help of peers and mentors. Contact TEC to find out how monthly meetings with a CEO peer group can help you deal with different types of organisational change.

Creating a company culture: Lessons form Consolid8

Consolid8 is an accounting firm that was originally built on the experience Managing Director Tanya Titman developed providing management accounting solutions. From that basis, Tanya realised there was a significant need for greater financial literacy among business owners, a focus she believes is a great differentiator for the business. There’s also been a focus on cloud accounting solutions, a fact that has seen the company recognised by Xero for its contribution to the industry.

However, Consolid8 hasn’t just made a name for itself in the way it serves its clients. The company is in the unique position of offering subsidised onsite childcare for its staff – a model that other businesses have expressed their desire to replicate. The childcare facility has provided challenges to the firm over the years, but it is well-established as a key part of Consolid8’s culture. The ongoing benefits it provides Tanya and her team have been well worth the effort.

The challenge: Balancing business ownership with a young family

In the last practice Tanya worked in before starting Consolid8, trying to look after two children (there are now four in her family) meant she experienced challenges often associated with being a working parent.

‘[When] having a baby and running a business, you don’t get to take six months off or 12 months off and just enjoy motherhood. It’s like business, it never stops,’ Tanya began. ‘I went through the challenges of trying to look after a baby while balancing that with work, and it was really, really hard.’

‘At the end of it I thought ‘no woman should have to go through this’, so when I went out on my own from day one I set up the on-site childcare.’

Tanya approached the inclusion of the childcare facility with no real strategy, but a desire to make it happen so other women could avoid the stress of what she went through. This resolve was put to the test even before the facility’s doors opened. It was originally meant to be a joint venture, but the day the centre was to open was the day the GFC hit, so the other business pulled out.

The solution: Creating a family-friendly working environment

Tanya’s experience in an industry that wasn’t able to offer the flexibility working parents desired was a key catalyst for the on-site child care centre. Women across the accounting sector were being discouraged from coming back into the workforce after having children, leaving them to make the tough decision between their children and their career. At Consolid8, that’s not a choice they have to make.

‘Amongst my peers and people I’ve gone through uni with, there’s some amazing talent and I’ve seen them rise really quickly through various firms and do amazing things and then they’ve had a child and it’s all come to a grinding halt because they weren’t offered any sort of flexibility,’ Tanya explained.

‘If I can present these amazing women with an opportunity to bring their kids to work or have their baby with them and be able to be breastfeeding and not have any of the barriers to being in the workforce… no one has to make the choice between work or family’.

Unfortunately, the process of setting up a child care centre wasn’t as simple as it sounds, especially as Tanya was essentially a pioneer for this model of creating an on-site variant. One of the core decisions concerned whether the centre could be government-funded without incurring significant amounts of red tape.

‘If we were to become a fully licensed childcare facility, we could access government funding but to do that essentially we’re becoming a commercial childcare centre, and there’s a whole lot of regulation and a whole lot of requirements for that that made it cost-prohibitive,’ Tanya says.

The results: An engaged workforce and a defining culture

The effects of the on-site child care centre have been wide-reaching, and influence more than just the working parents that bring their children into Consolid8 each day.

‘A graduate can come on to our team and know they’ve got a lifelong career here if they want it, and they’ll never have to make that choice,’ Tanya says. ‘I’ve had some of my male team members come on board and be able to bring their children to work so that their wives can go back to work.’

Most importantly, the centre is shaping Consolid8’s culture and changing the way staff engage with each other, while also attracting the next generation of employees.

‘The parents that are on the team are very connected because their children are growing up together in child care.’

‘The talent we get is incredible and we have a lineup of people wanting to come on board,’ Tanya notes. ‘In an industry that is really quite competitive for great staff, it means that we have the edge over many of the larger firms because they can’t match what we can offer in terms of that work/life balance.’

Tanya’s desire to challenge herself while developing Consolid8 led her to TEC, where she finds she is able to be influenced by people from business outside the accounting industry. Importantly for Tanya, the group isn’t just there to congratulate her on what went well but rather exists to question and challenge her – and each other – for the purposes of improving the business and her role within it.

How to receive feedback when in a senior position

As CEOs or managers, you can benefit from constructive feedback. Everyone has areas in which they need to improve, and listening to others can impart valuable information, even if it’s only regarding how others perceive them.

Top leaders — those performing in the 83rd percentile — ask for feedback the most frequently. Upward feedback incorporates feedback from employees in managerial reviews; it gives critical information regarding your relationship with employees. There is no doubt that feedback from employees and colleagues are helpful, but this doesn’t stop the fact that CEOs and managers often receive less feedback and have greater difficulty accepting that feedback.

Major sources of feedback for those in a senior position

Subordinates, colleagues, the board of directors, and even internal measurement systems can all be sources of feedback for you. But all of these sources of feedback are not the same. It’s important to understand how these sources can be best used and how they may sometimes be skewed either negatively or positively.

  • Subordinates. Subordinates are some of the most familiar with your performance because they work directly with you. That being said, they may conflate your performance with management as a whole. Some of their complaints may directly relate to their work rather than relating to your personal leadership style.
  • Colleagues. Colleagues have a significant amount of interactions with an individual but may not be truly objective. In order to continue a solid working relationship, colleagues may be hesitant to offer negative feedback, even if they are assured it would be confidential.
  • Board of directors. A board of directors see the results of your managerial style and can only give you feedback on your chosen business strategies. Because they aren’t privy to day-to-day operations, they may not be able to give accurate criticisms. When an organisation is doing poorly, they may see this reflecting upon you.
  • Internal measurement. Internal measurements such as those provided by enterprise resource planning solutions can give direct information regarding your productivity and success but may not be otherwise accurate, especially in relation to soft skills.

You need to use all these avenues of feedback to create a complete picture of your performance. This is why it becomes important to court feedback from multiple sources as it’s the only way to obtain a full and complete picture of both yourself and the current managerial environment.

Scheduling one-on-one meetings

One-on-one meetings are often the most effective way to get detailed feedback from employees and other colleagues. Though they may at first be hesitant to share any reservations, once they begin talking, you can then explore the issues in detail. Positive feedback also helps, as it can become easier to identify an employee’s or colleague’s values and what matters most to them about their working environment.

For employees, a one-on-one meeting gives them the chance to air out any of their concerns. In many cases, employee concerns can stem from a lack of transparency; they may not understand why processes are in place or the decision-making process behind these processes, as it has never been explained to them. Employees are also heavily involved in the day-to-day processes of an organisation and may see issues that are simply invisible from a CEO or management perspective.

For colleagues, a one-on-one meeting will often reveal how working better together would look like. There may be issues that are not apparent to you as your colleague may operate in a slightly different space and have an emphasis on different aspects of the business. Together, you and your colleagues can find solutions that benefit the business as a whole.

Getting anonymous feedback

Understandably, much of the challenge related to one-on-one meetings involves a hesitance to give direct criticism. Employees are often fearful of their jobs while colleagues may be worried that they will create a combative working environment. Some may not have any work-related concerns but may simply feel that it’s overly stressful or impolite.

Anonymous feedback can resolve some of these issues. Through anonymous surveying tools — such as Survey Monkey or Google Forms — employees and colleagues can evaluate individuals without having to attach their name. In an ideal scenario, this gives them more room to be honest and direct.

However, it’s also not without some issues. In close working environments, it can be impossible to give anonymous feedback without implying who gave it. Because of that, the feedback may be vague enough that it isn’t useful. At the other end of the spectrum, anonymous feedback can embolden certain members to give unnecessarily harsh feedback. Though this feedback may still have a core of truth, it’s important not to take it to heart.

Finding the right approach

Often both types of feedback can be necessary to create a well-balanced picture of your own performance as a leader. But you need to take some time to educate employees regarding the type of feedback that you’re looking to acquire. An emphasis should be on providing constructive feedback; rather than simply stating things that you’re doing right or wrong, employees should focus on how they would like things to be and whyThis gives you actionable information to work with.

Some structure to feedback can be desirable — such as asking employees to give you feedback on specific areas of your leadership: communication, decision-making, efficiency, and interpersonal skills. Employees are more likely to give useful feedback if they’re aware of the areas that you are seeking to improve and the type of feedback you desire.

Additionally, it can be important to separate yourself from the rest of the business and its management. Be specific about needing feedback regarding yourself and your own performance, rather than management as a whole. Otherwise, it can be too easy for both colleagues and employees to conflate you with the business itself and its processes.

When in doubt, ask direct questions, such as the following:

  • How can I better support you and facilitate your work?
  • Is there anything that I am doing that disrupts your work?
  • Have you received enough feedback regarding your work and your position?
  • Are you being given the opportunities to use and develop your skills?

If there are certain areas in which you want to improve, you can also ask your employee to keep an eye out for them. Some examples include the following:

  • Am I appropriately delegating work?
  • Do you ever feel as though I am micromanaging?
  • Are there tasks I give that you feel are unachievable?

Taking steps towards improvement

Whether or not you believe that the feedback was valid or useful, it’s important to acknowledge that it’s been received, understood, and — above all — valued. Whether feedback is negative or positive (and whether you believe it’s accurate or inaccurate), the process of giving feedback is something that you should encourage or reward.

Of course, once you’ve acquired that feedback, you need to process it into action. Feedback has to be assessed — both individually and as a whole. If there are areas that are frequently coming up, such as a lack of communication, then these are issues that you need to work on. If there are issues that are only coming up with a single employee, you may need to assess your professional relationship and whether the feedback may be valid or may be an idiosyncrasy of the individual.

Ultimately, collecting feedback not only gives you the opportunity to grow as a professional, but it also improves an employee’s relationship with the business as a whole. Through meetings with both employees and colleagues, you can develop relationships that are built on trust and work towards making them more functional and efficient. Remember: negative feedback doesn’t necessarily mean you’re doing something wrong; it could mean you’re doing something that isn’t effective for that particular individual.

Collecting feedback doesn’t always mean engaging with employees and colleagues, either. You can also get input and advice regarding your feedback from others who are experienced within your field. Mentorship and peer-to-peer exchange is an excellent way to get more insight into your performance as an individual. Contact TEC today to join a highly qualified, experienced, and professional network of leaders across the globe.

Making decisions with disagreements

When it comes to business strategies and problem-solving, not everyone shares the same perspective. Before a decision can be made, it’s not uncommon for a disagreement to occur. As a leader, it’s your role to manage these disagreements without letting them disrupt the flow of your organisation.

Sometimes, it’s not always important, or even possible, to make the best decision when you don’t have all the information regarding a certain issue. It’s more important that the decisions are made and that they are made with due consideration. You can achieve this by creating a decision-making strategy and by following these best practices:

Leave emotion out of it

A disagreement can easily become personal. After all, each professional is defending their own point of view, which stems from a combination of their own knowledge and experience. But everyone has their own perspective and no single individual can understand all aspects of a situation. It’s important to remain professional and to leave emotion out of the decision-making process.

Not only can introducing emotions ultimately confuse issues, but it can also reduce the impact of any points you are trying to make. Being clear on facts and clearly justifying your decisions is necessary not only for the best possible outcome, but also to ensure that employees understand your reasoning and do not feel ignored or pushed aside.

Appreciate all suggestions

It’s very easy to dismiss suggestions either as being outlandish or something that you’ve already considered. But rather than making a quick decision and potentially undermining your employee’s confidence, you should instead explore the idea and walk them through your own thought process. Be open to ideas that you might have otherwise dismissed; there may be some components that you haven’t considered.

By being a good listener, asking questions, and trying to see everyone’s point of view, you can create a positive and cooperative atmosphere. Employees will be more willing to share ideas, and ideas that are truly innovative and creative will be more likely heard. Being a primary decision maker is often like being an investigator; you need to explore all of the data before drawing a conclusion.

A failure to consider your employee’s ideas, even when they are truly unsuitable, can eventually lead to frustrated employees who feel unappreciated. When employees offer their ideas, they are trying to help. When that help is ignored, they often feel personally rejected. Moreover, it can make employees hesitate when they truly do have a good idea, as they may feel as though they won’t be heard.

Keep the consequences of your decision in mind

By necessity, each suggestion during a decision-making process needs to be explored to its conclusion. Once the brainstorming is over, each potential decision should be thoroughly outlined, and the consequences of that decision should be thoroughly investigated. The following questions should be asked:

  • What are the potential results of this decision?
  • What complications could arise due to this decision?
  • Who will this decision affect positively or adversely?
  • What will be the ultimate cost, in time and money, of each decision?

It’s possible that you may not know which decision will perform better. It may be something that is truly unknowable, such as a scenario that relies on too many factors, or it may be a decision that requires additional information before it can be made. Either way, if a decision must be made at this time, then the potential consequences not only need to be acknowledged but they also must be prepared for.

In business, it is possible that a decision may need to be made without all of the information present. Because of this, you may need to simply choose the best out of all possible solutions and plan contingencies in the event that there are negative consequences.

Compromising often doesn’t produce the best results

When we were children, we were often taught to compromise. It made sense because compromising is a fantastic way to build relationships with friends and family. But compromise is not a fantastic way to run a business. As a CEO, you need to make decisions that are optimal, not acceptable. Compromise ultimately results in both parties getting a little of what they want and a little of what they don’t need. Compromise leads to two dissatisfied parties and a weakened overall strategy.

CEOs may feel the compulsion to compromise when it comes to important business decisions, especially if tensions and emotions are running high. But when it comes to business, it’s almost always better to set a solid course rather than trying to split multiple strategies. A CEO needs to carefully study when compromise is and isn’t appropriate, and practice mediation in lieu of compromising their decision-making process.

Make better decisions through positive leadership

As CEO, you have already been selected to lead your company. Your company has put its faith in your decision-making abilities for a reason. Part of that reason is because you make well-considered, well-crafted decisions. As long as you are not making every decision in the company, it’s your prerogative to override others.

But it isn’t always that simple, especially when tensions run high or the right decision may not always be obvious. During those times, you may want to reach out for mentorship. TEC provides direct access to leaders and business owners who have experience moderating the decision-making process and ensuring that the right decisions are made day after day. Contact TEC today to find out more. 

3 important considerations fuelling CEO decision-making today

At a recent TEC conference, over 300 members were asked about the biggest decision they’ve made in the last 90 days and the biggest one they will make in the coming 90 days. From the pool of answers, there were three topics that stood out most prominently.

Achieving a strong corporate culture

Mentor Helen Wiseman discusses the effect corporate culture has on your company. A strong culture, aligned with the CEO’s clear vision for the business, can ‘strengthen your governance structures’. Helen also explores the strategies you can implement to improve this intangible yet invaluable asset.

Product development and go-to-market strategies

Mentor Ian Neal provides some insights on what strong product development relies on, from idea generation to launch. He tells leaders that crafting a great product is more than just doing ‘expensive market research or email surveys’. In the whitepaper, he identifies a free, accessible resource at the tip of your fingers.

Achieving significant growth

Mentor Trent Bartlett puts growth into perspective: ‘Leaders need to think about the maximum foreseeable loss their company can sustain’. Trent explores the different capabilities you can use to fuel growth initiatives as well as exactly what is needed to achieve it.

Contact TEC today to find out how our monthly peer group meetings and mentoring sessions, can help you push past your assumptions to make better decisions.