5 Things to Remember in Making Hard Decisions in Business

Anyone on the top of the chain of command in a company is under a lot of pressure from
the different stakeholders involved. Investors can also affect major decisions made by a
manager, such as those interested in pushing for sustainability. After all, the manager,
entrepreneur, or any senior member of the company will aim for the optimization of the
processes involved in their business.
This is especially true in locations where people are more socially conscious about the
occurrences in their country, such as the island city-state of Singapore. For instance, the
SMRT Chairman, Seah Moon Ming, was commended for leaving his existing job due to his
determination on improving their local train systems. A big decision like this involved
assessing the situation to determine if it was truly the best course of action.

To achieve this level of pragmatism, there are several considerations to be made on the
part of the senior employees. Their final decision can have either a major or minor impact
on the company, depending on the gravity of their position. It can be anything from
changing the kind of coffee in the break room to firing workers as needed by their boss.
Therefore, to ensure that the right solution to concerns within the workplace is chosen,
there should be several relevant questions asked by the senior team member:

Is It For The Good Of The Company?

All employees should work toward what they can do for the enterprise’s best interest
because that is what they are hired to do. Similarly, the employers should be mindful of the
desires of the investors, and if the decision they are about to make will ensure that the
company will be profitable.

The main question that every business owner, entrepreneur, or senior employee should
ask before they say “yes” to a request or set their mind toward a decision is “Is it for the
good of the company?” Even though the answer to this question may seem subjective, it
can also be quantifiable.

The senior-level team member should determine the parameters which they can use to
measure the intended goal of the decision they are about to make. For example, if there is
a request for better coffee in the office, the impact of approving this decision can be
measured through a survey. Since morale is an arbitrary factor, the person making the
decision can ask, through a survey or a poll, if they feel more motivated to work with better

Another example could be relocating the office to a new location. This could be due to
various reasons like cheaper rent. In this case, deciding whether the move will be “for the
good of the company” can be determined through a financial analysis of the big decision.

What are the Alternative Solutions?

There are instances where alternative solutions can be better than the initial decision of
the senior employee. It is important to thoroughly analyze the situation and figure out
different ways of addressing the pressing concerns or issues. This can be achieved
through thinking about the problem from different perspectives.

Is It Necessary?

Similar to how alternative solutions can be a better course of action to the original
decision, it is also crucial for the person deciding to assess the level of necessity of
realizing that decision. Some cost money or require the loss of a valued employee.
Besides, not all resolutions have to be executed. 

Who Are The Stakeholders Involved And Affected?

Each decision made will have the involvement of stakeholders for it to come into fruition,
as well as affect other individuals who are, in a way, connected to the company. These
stakeholders are employees, customers, suppliers, investors, and many more. Whoever
makes the difficult decisions in the business should consider these people as a factor in
the feasibility of executing it.

How Will It Affect The Future?

One of the reasons why making a decision can be difficult is due to the unpredictable
consequences that can arise when it is realized. Those who decide on the best course of
action have to exhibit a level of clairvoyance that can foresee any unintended results to
avoid making the wrong choice. They have to consider the possible repercussions of their
actions because they will affect the future of the company.

Business decisions require an acumen for being proactive without risking a lot for the
venture. Regardless of whether a lot or a little is at stake, entrepreneurs and senior
employees have to be pragmatic.

Isa Lillo


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