Too many leaders are making bad decisions. They know better, but out of ego, pride, or stubbornness, they can’t or won’t do the right thing. From politics to religion, from Wall Street to Main Street, these dumb decisions could be the reason that a recent rash of executives have lost their jobs.
In the building supply and construction industry, executives are making decisions about debt, acquisitions, and investments based on how they will affect next quarter’s financials and not on long-term value and return on investments. Most of these executives know how to make good decisions but choose to ignore the principles required, as it does not fit their current narrative.
You can start making good decisions today by following these six tenets:
1. Don’t ignore the little voice in your head. Everyone has this little innate voice in their heads that warns them when they are about to make a bad decision. It is reason and wisdom fighting the whims of impulsiveness, greed, and ego. Ignoring that little voice is a huge mistake.
2. Stop playing with the numbers. Does anybody do real business prospectuses these days or do they all just write propaganda to reinforce a decision already made? Many executives will dismiss real numbers that cast a negative view on a pet project. Let best estimates and real numbers stand for projects and stop shading them with rainbows and sunshine. Insist on honest numbers and analyses.
3. Get feedback from your team. Every leader has worn blinders or rose-colored glasses at some time when making decisions; we’re all human. Your colleagues, especially good ones, will let you know if they don’t buy into your decision. Pay attention to your team’s subtle messages, extra information, and the offer of alternatives. If you have a good team with trusted leadership, let them help. If you are willing to listen and can take criticism, encourage your team to analyze and dissect your decision to ensure it’s a good one. Doing so might save your job.
4. Ego and pride have no business in decision making. If you view yourself as the smartest person in the room and believe that your decisions are always right, then you have an ego and pride issue. Good decisions know no IQ—sometimes, it’s more about common sense than education. Executives with pride and ego issues have little empathy for others, which is a huge problem for making good decisions.
5. Don’t play the shell game. This is one subject no one wants to talk about or admit, but it is happening in companies across the country. The boss launched a new venture or program that is failing. To make it look successful, he moves revenue from a profitable part of the business into the struggling initiative. This type of make-believe success is at the heart of most business failures in America.
6. Stop spinning the facts. The rhetoric spewed by many executives in corporate America has reached an epic level of dishonesty. A loss can be explained as “trying to increase scale,” excessive debt can be interpreted as “investment in technology,” and a CEO fired for destroying the balance sheet can be called “a strong leader with a different vision.” If you’re spinning the facts, then you’re likely not making fact-based decisions.
Consider these six tips, because how you make decisions will determine whether you make the right decisions.
