How can I make better business decisions?

The most important thing about business decision-making is that it is not decision-making by an individual but group decision-making.

The decision-making process is not difficult to discern. The decision-making making process may have a variety of different formats, but at the core of the process are certain essential requirements: (1) the identification of the authority and responsibility of the individual to make the decision, (2) recognition of the time available for making the decision, (3) accumulation of information regarding the decision, analysis of the gathered information, (4) utilization of counsel from those affected by the decision and those experienced in making similar decisions, and (5) articulation of the decision in a meaningful format.

Use of a decision-making process is not a delegation of authority. The process must reflect the authority bestowed by the entity structure of the business on the responsible party to make the decision. This must be clearly articulated initially and restated throughout the process. Individuals who are asked for opinions about the decision should have no illusion that they are making the decision or that responsibility for the decision has shifted in any way.

Please click to access a PDF describing the process of creating and maintaining a decision-making process.