In his recent interview in the Harvard Business Review, Ram Charan, noted author, renowned scholar, and trusted advisor to the corporate elite, shares his tips for effective decision making in the twenty-first century. As someone who has counseled senior executives and board members alike, he admits that “getting to the right answer is tougher these days.” Technological advancements and the rapid pace of change within organizations, as well as in the greater marketplace, have made strategic planning a more important but more challenging endeavor than ever before.
Charan explains that many executives have earned their titles because they’ve proven their ability to take risks and make tough decisions. The best CEOs are those who can gather and absorb a wide range of information from myriad sources, and siphon out the most important points and key takeaways for their businesses. They are also excellent at recognizing those assumptions upon which their decisions are contingent and consequences that may arise as a result of alternative courses of action. You may not be a CEO or even a senior executive, but we all make decisions at work and in our daily lives. Below are the three fundamental traits Charan believes are key to increasing the quality of your decision-making and improving the way you approach problems.
- Perceptual Acuity– The ability to anticipate change. This means scanning your surroundings for opportunities and threats, focusing in on the most important variables you must anticipate, and playing out potential scenarios and alternative courses of action in your head.
- Qualitative Judgment– Once you’ve thought things through, you’ll want to make the best decision, of course. Leverage your network of colleagues, co-workers, and friends. Ask for their opinions and input. Consider the consequences of your actions very carefully, and pay attention to important details.
- Credibility– Keep an open mind to others’ perspectives and build support among key stakeholders. Make tough decisions when you have to and have the strength of character to stand up for what you think is right. The title of this HBR article says it all, ‘you can’t be a wimp; make the tough calls.’