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5 Ways Leaders Can Weigh Decisions Before Implementing Them

The new era needs leaders that can back their decisions with statistics. Your leadership experience has enabled you to trust your instincts, but today’s stakeholders need facts. In this article at Big Sky, April Resnick provides 5 ways leaders can weigh their decision-making before implementing them.

5 Decision-making Metrics for Leaders

To successfully leverage decision-making metrics, leaders must identify the relevant ones and collect data to feed the tools. It is not easy to apply metrics to administrative and management activities but those enhance company processes and functions. Following are five decision-making metrics for leaders:

  1. Time Management: Every company has internal and external procedures. From getting an intern onboard to responding to customer issues, you measure the length of time of each of these tasks. By calculating the hours it took to traverse the full length of a process, you get a median timeline. This helps you focus on reducing the time taken for certain activities. In turn, it lessens the overall timeline.
  2. Error Mapping: Leaders can reduce errors by simply measuring the number of errors or repairs and their recurrence. Your company must have a positive culture of error mapping to allow you to identify and address red flags immediately. Once you understand what type of errors are occurring when and where, you can create a pattern from them. Leaders must find the root cause of the errors and eradicate them.
  3. Cost Evaluation: Though cost is one of the primary metrics that organizations calculate, it is purely for budgeting purposes. Leaders must, however, collate all the cost-related information regarding administrative and knowledge processes. To find out the actual culprits, categorize the costs of each process based on resource strength, timeline, infrastructure, and errors. You will be in a better position to make project-based decision-making, resource management, and process enhancements.
  4. Soft But Essential Values: Happy customers, engaged employees, and strategic thought leadership are crucial for any business to succeed but are hard to measure. Since leaders cannot measure them directly, they must rely on metrics like retention rate and customer feedback. Be creative to find out how your company, team, or function is faring in regard to the soft values.
  5. ROI Calculation: Leaders must calculate ROI before launching a new program or process. This metric helps to understand the time and cost you need to make the launch a success. However, you can measure ROI only when the program has generated initial profits. While the primary effort is to balance the production costs, several strive to be overtly profitable. Nonetheless, this decision-making metric can back your claim for more investment.

To view the original article in full, click on the following link: https://www.bigskyassociates.com/blog/5-decision-making-metrics-every-leader-must-track

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