Business managers need to be certain about the direction which they want to take the business in in the future.
Only after achieving that level of certainty, they can decide about the future plans of actions (business strategies) how to get there where they want the business to be.
In order to make effective decisions in a business organization, it requires setting clear objectives. To decide about business objectives, managers can use The Decision-Making Framework Model.
The Decision-Making Framework Model in details
Here are the essential stages in The Decision-Making Framework Model:
1. Set ‘SMART’ objectives. They must be Specific, Measurable, Achievable, Relevant and Time-Bound.
2. Assess the problem that the business is facing, or the situation.
3. Gather as much qualitative and quantitative data and information about the problem. Try to get feedback from different stakeholders about possible solutions.
4. Consider all decision options.
5. Make the strategic decision when you are ready.
6. Plan carefully and implement the decision.
7. Review the success of your decision against the original business objectives. Have you achieved what you wanted? If not, why not?
Clearly, without setting ‘SMART’ objectives at the start of this process, effective decision-making for the future of the business becomes impossible.
