Forces of Organizational Change: Planned vs. Unplanned Change and Internal & External Change
In the fast-changing business environment, the contemporary organization’s must learn to be more adaptable and flexible for successfully facing the environmental challenges. Most of the organizational changes are implemented in a planned manner for realizing the specific objectives or goals. However, organizational change can be implemented in any one of the following ways as described […]
Risk Management and Stock Market
In stock market there is strong relationship between risk and return. Greater the risk, greater the return generally! In financial terminology risk management is the process of identifying and assessing the risk and then developing strategies to manage and minimize the same while maximizing the returns. Every investment demands a certain amount of risk and […]
Ethics Management Programs
Ethics Management Programs are designed by an organisation or an employer as an attempt to have formalised structures for ensuring the organisation is perceived as fair, honest, responsible and just. Ethical programs globally are designed keeping four things in mind: Considering oneself and the organisation as part of the larger social framework. Considering the development […]
How to Conduct High Stakes Negotiations in the Digital Age without Being Short-changed
Negotiations are Part and Parcel of our Daily Lives Negotiations are part and parcel of our lives. Whether it is bargaining with the vegetable vendor or haggling with the butcher, we are all exposed to negotiations as part of our existence. Thus, one cannot but master negotiating skills if one to has to navigate the […]
Homogenous Vs. Heterogenous Bundling in Reinsurance
The insurance industry is a large and diversified industry. It has several different types of products and operates in multiple geographies. This means that the risks on the balance sheet of the insurance company can be quite diversified. This means that a reinsurance company is also exposed to a lot of variety when it comes […]
From the time we wake up to the time we finish for the day, we are bombarded with all kinds of facts, opinions, news, and views. In this context, the key imperative is to how to decide on anything to do with our daily lives without missteps and misjudgments. Decision making in a confusing world can be tough and this article discusses some strategies and tips on how to arrive at business or personal decision-making.
The first and foremost aspect is that one must trust the source but must verify the facts.
In other words, this means that one must not take everything that comes one’s way without ascertaining whether the information is true and relevant in addition to being pertinent and factual. This means that whenever we are presented with a particular piece of information, we need to double check and cross check it with other sources.
A simple strategy here would be to cross check the information received from one source with other sources so that any possible misinformation can be vetted and verified. This works for most business leaders who often insist on multiple reports from different individuals so that they can make up their minds about the likely course of action.
The point here is that we must not blindly trust all the information and use our sense of discretion and discernment when making up our minds.
The second aspect related to decision making in a confusing world refers to the ability to defer the decision without rushing into judgment and at the same time without delaying it too much.
Research into behavioral decision-making indicates that it would be better to have a lag between the time the information is received and the time one makes the decision.
In other words, look before you leap and take your time before arriving at a decision. The crucial window of time that is needed for successful decision making often makes the difference between success and failure.
Business leaders often take the time to listen to everyone’s point of view, and then ponder about the course of action to be decided, and then only arrive at a decision. In case on the spot decisions are required, then rely on your own experience and your own judgmental abilities instead of relying on others. After all, if you are the decision maker, you would be held responsible for the consequences and not the others. Therefore, taking responsibility and having discernment are both admirable and advisable qualities in decision makers.
The third aspect is related to the need to keep one’s eyes wide open meaning that one must actively seek information and knowledge from others. The best decision makers are those who equip themselves with the necessary knowledge and have the information about the macro issues at their fingertips.
Most business leaders in the corporate world subscribe to think tanks and publications such as Harvard Business Review so that they are abreast of the latest happenings in the world of business. Apart from this, they actively seek feedback and listen to the other employees or the “boots on the ground” so that when they need to take a decision, the chances of them being misled by those with hidden agendas is minimal.
One needs to remember that the corporate jungle or the euphemism for the corporate world resembles the metaphor and hence, success belongs to those who are astute, adroit, and agile. All these qualities need experience and an ability to synthesize information from different sources and to forge everything together into a cohesive and coherent set of data points that can be used as the basis of decision-making.
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