Here is the formula I use for making tough business decisions:
Firstly, I have made it a rule never to make a decision when I am emotional in any way — angry, jealous, excited, etc — I wait until I have returned to an average state. This can be pretty important because mistakes are made when our head is not clear.
Once I have my emotions under control, I follow these steps:
Step 1: Evaluate the Risk/Reward Involved — this step allows me to decide how much time I need to devote to the planning stage.
Step 2: Planning — If there is a good deal at stake in terms of time or money, I will plan appropriately. I should say, however, that the planning stage is a dangerous one —- you can hide in the planning stage for a long time and justify it very easily —- “Hey, I am still researching this! Lay off me.”
Step 3: Put Your Head Down And Move Forward — Once you have made a decision, it is time to move forward. Take the first step, don’t think about the entire journey. Just take the first step!
Step 4: Re-evaluate — Don’t walk too far down the trail without pulling your head up again and evaluating where you are. You may have chosen the wrong trail. That’s ok, unless you have walked all the way to the “dead end”
I want to know how you make tough business decisions. What tough decisions have you had to make lately? How did you get through them? Where do you get stuck when you are making tough decisions?
Learn more here or sign up below
{ 7 comments… read them below or add one }
Hi Russ,
I like your blog focus today. For me, it was the best way to invest my time. I recently pulled out of a Master Mind group I had been active with for the past two years. The people in the group are great. I found myself stressed out about attending each meeting and thinking about the client work I needed to complete, and not really enjoying the company of my peers.
After my business partner and I completed our three-year strategic plan, we realized that we needed to be more focused. So we had to ask hard questions about how we spent our time, how that benefited clients, how that benefited the business, etc… We’ve recently resigned from several organizations and have focused more on groups that are more in line with our company goals.
It’s hard when you need to resign from a group where you’ve built friendships but ultimately you know it’s the best decision for you personally and professionally.
Best regards,
AMM
@AMM — Thanks! I know that had to be a tough choice for you to make — but I admire you for making the decision to pull back on some of your involvement in organizations.
Sometimes we spread ourselves so thin that it isn’t beneficial for anyone involved.
Thanks for stopping by Ann!
Russ,
A great point you’ve made here. Recently I was presented with an opportunity to take one several projects at once. A couple in particular are long-term and require lots of time and work. When I was making a decision on each it was indeed very tough to pick and choose in hope that I’ve taken the right trail.
I found myself following a similar guideline such as the one you have mentioned here. Following your rule above is perhaps the most important step in this process though. A clouded mind can reflect lots on the results and output.
Ivan
@Ivan Temelkov — it’s difficult to know if you took the right path or not right away — but it eventually becomes clear — if you realize you’ve gone down the wrong path, the sooner you turn around and cut your losses the better.
I just read a great book — actually listened to the audio — The Dip by Seth Godin — 90 minutes of audio that will change your life — it’s really that good. It’s all about making choices, quitting and pushing hard when the going gets tough.
Sounds like a highly motivational piece. In reality it’s all about choices and pushing hard when the going gets tough. In today’s World and economy competition continues to grow. Demand for products and services has changed in various ways.
You need to make the right choices and push hard if you seek to succeed. It’s tough…tougher than ever before but the ROI is that much sweeter in the end.
See you Thursday!
You’ve really nailed this one Russ… I have a particular difficulty with implementation!
I get a fresh idea, plan my strategy and then begin to implement the idea. But often the implementation is time consuming and the fresh new ideas continue to pile up. It’s difficult to turn your back on ideas that might have a promising payoff!
In an effort to focus on my implementation goals I’ve significantly reduced my time on facebook, twitter and email. Your working hours can be swallowed by these three time robbers alone!
@Tom — I hear ya’. Time robbers is right — you have to have a plan and stick to it with the social networks — I wrote a post about this here called The Tortoise And The Hare