6 Questions to Ask Before Making Decisions

“My basic principle is that you don't make decisions because they are cheap; you make them because they're right.” - Theodore Hesburgh

Now, more than ever, business owners and leaders are trying to stretch their dollars as they await a reversal in this economic downturn. Weathering these challenging times is causing some businesses to make desperate decisions that are not in the best interest of their business or company.

When you make desperate decisions you create desperate results. What do I mean by this? It’s like putting a band aid on a gunshot wound. It’s a short term and ill advised solution. When you make decisions out of desperation, you are reacting as opposed to responding to the situation, which in some cases can do more harm than good.

These desperate decisions can show up as massive layoffs, taking on clients you wouldn’t normally do business with, drastically cutting your fees just to get business in the door, or even worse, laying low and not doing anything hoping that things will eventually settle down.

What is the best thing to do in these situations? Before you make a decision that may do more harm than good, take a step back, take a breath, and give yourself some time to get out of desperation mode and into a more positive place. Once you do that, you can think clearer and you can create more positive, long term, sustainable outcomes.

Here are some questions to ask yourself that will produce more value based decisions.

1. What is the breakdown you are addressing? What is the initial cause of your concern? Monetary issues? A weakened economy? Take time to identify what is causing the most headaches for you and your team.

2. What is the desired outcome? Is it simply dollars you want to deposit into your bank account? Or would you rather begin now to forge lasting client relationships based on trust? The perfect time to create strong bonds between you, your clients, and team, is during an economic slowdown. This gives you the time to concentrate on building solid relationships that will continue to grow once the economy shifts.

3. How will it serve you, the company, or business? Making a hasty decision will always create havoc within your company. For example, before laying off members of your team, look at other unexplored avenues of generating income, or get creative in your advertising efforts. Carefully examine the long term effects of any drastic decisions you make in order to simply save money. How will cost-cutting measures affect your levels of customer service? If you lose valuable people through layoffs, will you be able to hire them back at a later point?

4. Is the decision in keeping with company’s core values and visions? When making decisions that will affect others, pay close attention to what your core values are telling you. “Gut instinct” is seldom wrong. You know when you’re going against everything you and your company has stood for for many years, because there will be a little voice telling you, “Hang on a second. This decision doesn’t feel right.” Listen carefully and act wisely.

5. Will it produce long term sustainable results for the business? What will be the impact of the decision you make today in one year, two years or five years down the road? Will today’s clients still be doing business with you in the future or will they have gone the route of the dinosaur and disappeared? Or will implementing a change in the method of how you do business bring you continued client growth well into the days of tomorrow? Every action has long term implications, so be sure to gauge the potential future outcomes before you make your decision and act upon it.

6. Can you stand in your integrity if you make this decision? This is the kicker. Can your heart and conscience live with the decisions your head has made? That’s what decision making boils down to. If the decisions and actions you take affect your whole sense of well-being, something is off, and that means your integrity has been compromised. If you are unable to make a decision, implement the action, and stand by the results with quiet dignity, don’t do it. Look for another solution to your problem.

After asking yourself these 5 questions, you should have a good idea of whether the decision you’re about to make is a valid one that won’t keep you up at nights filled with dread about the outcome. And frankly, who wants to live the life of a terminal insomniac? I don’t.