Discover how the business decision-making process works

Do you know how the business decision-making process works? The daily life of an entrepreneur is full of different challenges . And you won’t always have all the information you need. So, you need to prepare to propose the best paths and act quickly and efficiently.

In this scenario, some metrics can help a lot during the business decision-making process, such as SLA, conversion rate and call success rate. These indicators are relevant inputs to base your opinions on.

In this post, we will explain how the decision-making process works, how important this aspect is for business growth and what its main types are. We will also show you some metrics to make your life easier. Come read!

What is the business decision-making process and how does it work?

The business decision-making process is characterized by the manager or entrepreneur choosing a certain alternative. Decisions can be made regarding the simplest problems to very complex ones, even when you don’t have the complete picture, but need to define everything quickly.

Decisions also have different impacts on the company. Therefore, deciding to hire a management tool does not have the same weight as selecting the neighborhood to open your store. The assessments that the entrepreneur makes in each case consider different criteria .

The decision-making process requires you to seek information to understand the scenario and contextualize yourself, evaluate the options at stake and weigh the pros and cons of each alternative, and then choose one of them.

Now, let’s take a closer look at how decision making can impact your business. Check out!

How important is business decision-making for business growth?

An entrepreneur’s routine is made up of decision-making that ranges from selecting where to have lunch to deciding on the creation of a new product, choosing a business partnership or looking for a partner for the company. In this sense, decision-making needs to focus on business growth, the benefits and risks of each alternative.

When made well, choices guide the company towards a successful future. But it is important that you know how to identify the opportunities of the alternatives that present themselves, consider strategic planning and business goals.

One tip is to use structures or a scoring system, considering urgency and priority, to help with business decision making .

What are the types of business decision making?

There are several types of business decision-making, and each situation requires its own processes. Something you should keep in mind when making your choices in the company is the purpose of the business .

They must not exceed organizational values, which are also important elements to support the decision-making process. It is preferable that your decision-making is based on solid data and arguments, but there is nothing stopping you from taking your intuition into account. On the other hand, it is necessary to have discernment when following the so-called sixth sense.

When we talk about business decision-making, there is a lot at stake and, depending on the path selected, the risks may be greater than the benefits. Therefore, using data is one of the best options for business. In this sense, monitoring processes and measuring results is essential to make excellent evaluations.

Investing in management reports is also a good strategy, because they centralize the most important information about your business and can bring relevant insights to your decision-making.

How to make business decision making?

As you can see, decision making is important to improve business results. But how to do it properly? In order to help you, we have put together several important tips. It’s worth continuing reading and checking out this special content!

Have good strategic planning

Strategic planning is essential to understand the main characteristics of the enterprise. Furthermore, by preparing it, it becomes easier to understand the possible direction your business will take following a decision.

With this, you will have more input to decide, with basis and intelligence . Planning is still relevant to establish the direction of the business based on the objectives and understanding of various factors.

For example, it will give you a broader view of the target audience’s needs . It will also offer clarity on market opportunities. This way, you will be able to better decide what to do to achieve growth.

Use the data

A manager who uses data when making decisions has a greater probability of success. This is because they offer a better perception of the reality of the business.

However, it is important to have a good system in order to collect quality data. Otherwise, the chances of having irrelevant data or leading to wrong decisions are high.

It is also necessary to define relevant metrics to help with decision making. There are several business indicators with this focus, and understanding when to use each one is essential to be efficient in your business.

Be creative

There are decision-making that is more difficult and will require more creativity on the part of a manager. Sticking to the basics and not thinking innovatively, in these cases, can generate mistaken judgments that will harm business performance.

Therefore, try to use a more innovative sense and not stick to the standard . This boldness can be the competitive differentiator that the establishment needs to stand out in the market. In this sense, there are some tips that can help.

For example, always keep possible options in mind. Furthermore, try to understand the market in which you operate. This way, you can identify opportunities to solve your problem while finding ways to be more relevant.

Count on your team

There are situations in the company’s day-to-day operations that you may not be aware of. Only those who are involved in operations on a daily basis can have more clarity about the difficulties they face.

For example, there are potential improvements that will make your employees’ lives easier that only they can see. So why not involve key team members to help with decision making?

In addition to helping to make decisions more efficiently, it is possible to generate a sense of belonging among employees. Consequently, you will have people who are more engaged and interested in finding solutions to improve business results.

What metrics help in business decision making?

Now that you know the steps to make good decisions, how about knowing the main indicators? Below, we have separated three metrics for you to keep an eye on and make better decisions for your business. Check out!

Conversion rate

The conversion rate is an important indicator of your marketing and sales strategies . Using this metric, you can assess whether the initiatives are working or whether they need to be revised. Depending on your assessment, you have more confidence to discuss actions with the teams and make decisions.

The conversion rate is crucial for having sales predictability and making projections, in addition to being a powerful indicator of your business growth. When making decisions, it is also important to consider and compare different periods to have more information to base it on.

SLA

The SLA determines the guidelines for the relationship with the customer, including service deadlines. In the business decision-making process, it is important to consider these criteria so as not to harm the company and exceed established guidelines.

Furthermore, not following the SLA can harm customer relationships and brand credibility. Therefore, the decisions that involve it end up directly impacting the business; the service team needs to know very well the criteria involved in this process so as not to violate any SLA guidelines, even without knowledge.

Call success rate

The call success rate is also a relevant indicator for business decision making. But first, you need to establish what will determine whether or not a call is successful. This applies to all business metrics: everyone on the team must be aware of what to consider in each indicator.

With these definitions, it becomes easier to monitor the indicator and use it efficiently to make your decisions. When reports indicate that the success rate is low, your decisions must be aimed at changing strategies . And this also applies to the many other metrics used in your business.