Many owners of small and medium sized business are going to spend the next few weeks pondering a question critical to their business success. The subject will vary but the basic question will be: “Should I or not?” Answers will vary, business will expand, contract, or fail; employment will increase or not, and major changes in the structures of firms can occur. I suggest the decision question uppermost in your mind should not be “Yes/No”, but “How?”

“Facts are facts and that means I must act, now” is one way of looking at the decision making process, but chances are this approach will give wrong answers. Instant answers are seldom right. Besides, over the past few years decision making tools have developed to the point where an accurate decision can be made even in the absence of all of the facts. Here’s a brief overview of how these techniques work.

DEFINE THE PROBLEM
Make sure you are looking at the specific problem and not what you perceive as the problem. For example, your firm’s failure to perform could be caused by lack of information, material, money, data from other firms, employee's cooperation or whatever; and may not be the fault of your personal decisions or the business climate in which you find yourself. Failure to perform, whether from an individual or a corporation can have many roots so explore each one in detail before jumping to a conclusion.

An excellent way to make sure you have the right problem is to write down what happened then list the things that could have caused that problem to occur. Act only when you have clearly defined the problem to be solved. The first answer you receive is probably not the “real” answer, so explore in depth.

GIVE IT TIME
Other than when dealing with moral questions, there are very few business decisions that must be made immediately. Snap decisions like, "We can meet that price." or "Of course you can have it tomorrow!" should be replaced with, "Can I get back to you about that?" Major decisions such as expansions, contractions, new product lines, or closing shop deserve analysis, not instant answers. No situation is so critical you must decide on the spot. Give it time, even if it’s just a few minutes alone with a pencil and pad!

USE OTHERS – WITH CAUTION
This is a two-headed problem. On the one hand, consider whether you are sure you are the right person to solve the problem! Other viewpoints may be of great value, especially when dealing with problems close to your heart. Some problems, especially personnel problems, can put you in court if not properly addressed. Bringing another person into the decision process can open new avenues for solutions, and could save you both time and money.

The other side of this is the problem of “Groupthink”. (Groupthink can be defined as decision making using input only from the group itself.) Many management teams, including Boards of Directors, have made Groupthink decisions which have resulted in disasters for their companies. Often the problem lies with dominant personalities with forceful approaches, which is not what you want. Input from outsiders such as bankers, lawyers, accountants, and consultants can overcome these barriers and produce positive results. Be wary of any decisions made by a small or close group, especially if that group has previously worked together on other projects.

REVIEW
Any feedback or information you receive needs to be reviewed before believing it to be a decision factor. The challenge is to use ALL the information available, and not let the ego of the deciders set the agenda. An examination of the facts, then comparison with similar situations from others can offer valuable input to your problem, but again shouldn’t be the deciding factor. For example, other divisions in your company, or other individuals, or even other companies could have information that would positively affect your final decision, so record everything, obtain feedback, and review the facts. Your aim is to make intelligent decisions, not snap decisions.

RECORD
It’s not enough to make a decision then record it, you need to record the details as well. Whatever you decide, make the effort to write it up in detail. Start with the perceived problem and add in the factors you discovered that defined the real problem. List the inputs you used to frame the decision along with the individuals or groups that provided input. Finally, state the decision that was made along with the reasons for the decision. Time will tell whether the current decision was right or wrong, and this valuable information can be used to guide future decisions and future plans.

PROFESSIONAL HELP
The best place to learn more about decision techniques is your college or university business school. Many now incorporate modules on how to make decisions in their management programs, and many have seminars and classes for the public. The techniques work with or without a computer, so expensive software isn't always necessary. This is a valuable resource, and you can often “rent” a moderator for your decision process. Check it out.

(NOTE TO EDITORS: PLEASE INCLUDE THE FOLLOWING.)
Paul Tulenko is a Small Business Success Consultant based in New Mexico. Additional tips and suggestions are available at www.tulenko.com or call (toll-free) 1-866-TULENKO.