A decision is a choice of an alternative. The ability to make managerial decisions develops with experience. We make everyday decisions without systematic deliberation. Instead, we think over long-term options in life. In management, decision-making is a systematic process. The reasons for this are the responsibility for making decisions and the consequences for the entire company.
How management decisions are made
There are three main types of management decisions made:
- Intuitive decisions are based on the feeling that the choice has been completed correctly. According to many successful leaders, many decisions (up to 80%) are made based on intuition.
- Judgment-based management decisions are choices based on knowledge and experience. Advantages: fast and cheap adoption. But the fear of new areas of activity can hold back the development of the company.
- Rational decisions are justified through an objective analytical process without relying on experience.
Depending on the style of decision-making, such a situation, and his expertise, each manager chooses one option.
Methods for predicting rational management decisions
There are several general approaches to how you can expect the potential success of a given solution:
- Informal information. Rumors. Industrial espionage.
- Quantitative methods: Time series analysis. Trends. Correlation-regression analysis. Correlation coefficient.
- Qualitative methods: opinion of the jury. Brainstorming, consumer expectation model. Based on forecast changes in demand,
- Method of expert assessments. Delphi method.
- Polling method. The results of the survey of experts are returned to them for discussion 3-4 times. This is how experts agree.
As you can see, in any case, making managerial decisions is working with numbers and, most importantly, with information.
How do modern tools help to make decisions?
So let's imagine for a moment that you must make an important decision for your company. For example, choose the prevailing development directions for the next year. You already have a lot of data: information about customers, sales for the previous periods of the life of your company, understanding of external factors, and detailed analysis of competitors. But, so far, these are just data arrays that someone has to deal with.
It is best to involve professionals who will streamline the available information, analyze it and give you their expert opinions on issues of interest. Agree; this greatly simplifies decision-making.
But where to place all these specialists? For project work, it makes no sense to seat them in offices. Instead, you need to have a virtual communication environment that will be secure enough so that your data does not pass to third parties and is not lost.
The answer is: it is a virtual data room. On the site https://datarooms.fr/ you can find out the full information about the benefits of this technology.
In short, you leave your data in an ultra-secure cloud with bank-level encryption. This allows you not to be afraid of external threats. In addition, the distribution of permissions for different users, the preservation of the history of documents, and watermarks help protect files from theft by company employees.
Virtual data rooms are used for analytics, due diligence, and M&A deals. This universal tool has already been appreciated by many businessmen and corporations worldwide. You can become another happy user of such a service!
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