A business owner should strive to make informed, effective decisions. Following are five processes from www.uschamber.com you can implement to make good decisions for your business.
- The “5 Whys” technique was first developed by the founder of Toyota to get to the root cause of any problem. When an unexpected problem occurs, you ask “why” five times to identify the real issue that must be addressed. After each “why,” take time to discuss the reasons. Be as specific as possible and look for fact-based reasons. Once you have identified the root problem, the team can start brainstorming solutions.
- A decision tree analysis is a scientific model organizations often use to help make decisions. It involves outlining possible solutions and alternatives—in the form of a flowchart—until a final decision is reached. A decision tree is a good way to list all the possible choices, as well as the risks and benefits to those choices.
- The CATWOE analysis is based on an acronym for a series of steps to help businesses identify problems and find possible solutions. Steps include identifying whether the problem directly affects customers and handling it immediately if it does; defining the roles your company’s employees, suppliers, etc., play in the scenario; examining how the problem affects the processes your business relies on to be successful; looking at the long-term effects of your problem; identifying who should take ownership of the problem and how they can contribute to the solution; and identifying environmental constraints that keep you from implementing solutions.
- Reverse brainstorming involves identifying a problem, and instead of asking how to solve it, asking, “How could I be causing this problem?” You then make a list of “reverse” solutions. For example, if you are trying to improve customer satisfaction, you make a list of the ways you could be keeping your customers dissatisfied. You and your team can talk about each item and identify potential solutions to implement.
- Risk analysis is key for businesses of all sizes. Companies are exposed to countless risks, and if they are not identified early, they can become significant problems in the future. It can be a useful tool when you are planning a project, improving safety measures or doing financial forecasting. Once you have identified the risks your business faces, you can start looking for ways to manage them.
