How successful people make decisions

This year, you will face many decisions, some of them very difficult. Here is a checklist to help you make the right decisions.

What would happen if no decision is made: Often, the answer to this question will reveal what the decision should be. For example, if you do nothing in the face of declining sales, your business will go broke. The decision is to ask clients what’s wrong and re-examine the product offering.

Don’t waste time on small things:Successful people don’t spend time trying to decide on small things. They have a simple formula for anything minor. In deciding what to wear, for example, they choose the same type of clothes. You will almost always see Mark Zuckerberg in a grey T-shirt.

Trust yourself: If you make the wrong decision, trust your ability to change direction quickly if needed.

Consider the source when consulting: Consult with others and try to see all sides. But when asking for input, always consider the source. Everyone has an agenda.

Use a checklist: If the decision relates to the operation of your business, use a checklist. This is the system used by famous investor Warren Buffet. Every decision on whether he invests or not is put through an extensive screening process.

Go with your gut instinct: Once you have gathered all necessary information, go with your gut instinct. Your intuition is based upon your past experiences and is the best indicator of what to do. If it doesn’t feel right, or you have to talk yourself into it, don’t proceed.

Mr. Jobs’s own research and intuition, not focus groups, were his guide. When asked what market research went into the iPad, Mr. Jobs replied: “None. It’s not the consumers’ job to know what they want.”

– The New York Times’ obituary on the death of Steve Jobs

Throw up a trial balloon: Put out a feeler, if possible, to see what happens. For example, in deciding whether to introduce a new product or service, tag it as an add-on to an existing product or service first. This is a technique used by billionaire Mark Cuban. Several years ago, when deciding whether he should sell Magnolia Pictures, Cuban put out feelers first.

Does it fit in with your values and those of your organization? Value-based decision making is practiced by successful people. They base their decisions on the values and principals adhered to by themselves and those of their organization. For example, if the operating principal is “the customer is always right”, then the decision is to do what will make the customer happy.

Does it meet corporate objectives? Decisions are often based on whether they fit into the overall company objectives. A business that customizes its products and services to meet the exact needs of customers will make decisions that allow this to happen.

What happened the last time? Successful people go back to the past and consider what may have taken place the last time a similar decision was taken.

How will it affect others? Understanding the full impact of a decision will help you decide whether or not to proceed.

Allow time for reflection before deciding: Never decide important decisions in haste. Once you believe you have a solution, take a day or two to think more. Whenever I do this, I often come up with something better.

Look from 10,000 feet up: Try to separate yourself from the situation. Pretend you are 10,000 feet in the sky looking down at all of the players and events. This helps “clear the air” and gives perspective.

This article is published in collaboration with LinkedIn. Publication does not imply endorsement of views by the World Economic Forum. 

To keep up with Forum:Agenda subscribe to our weekly newsletter.

Author: Cory Galbraith is CEO of Galbraith Communications.

Image: Traditional Incandescent light bulbs are seen at an apartment in Munich. REUTERS/Michael Dalder