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7 steps of a decision-making process

Every manager goes through a decision-making process on a day-to-day basis. The process helps them to solve problems by exploring alternative decisions and choosing the best path. The decision needs to be done in a step-by-step approach. This is an effective way to make well-informed and informed decisions that will positively impact your company’s short-term and long-term goals.

The business decision process is classified into seven steps. Managers can take many of these steps without realizing it. However, a clearer understanding of best practices can increase the effectiveness of your decisions.


Here are the seven most essential steps in the decision-making process.

Identify the solution: The first step in making the right decision is identifying and resolving a problem or opportunity. Determine why this decision is essential to your client or colleague.

Collect information: It is time to gather information to make decisions based on facts and data. This decision requires a value assessment to determine what information is relevant to the conclusion and how to obtain it. Ask yourself what you need to know to make the right decisions, then look for everyone who needs to be actively present.

Identification of alternatives: Once you have a clear understanding of the problem, it is time to identify the various solutions you have. You may have many different choices when making decisions. Therefore, it is important to include multiple possibilities. This will help you determine which course of action is the best way to achieve your goal.

Weigh the Evidence: In this step, you need to “evaluate feasibility, acceptability, and willingness” to determine which alternative is the best. Managers must weigh the pros and cons and then choose the option that offers the best chance of success. It is helpful to gain a second opinion confidently to gain a new perspective on the subject at hand.

Choose from alternatives: When it’s time to decide, make sure you understand the risks associated with the route you choose. You can also select alternative combinations if you fully understand all the relevant information and the potential risks.

Taking the initiative: You will then need to create an implementation plan. This includes identifying the resources required and supporting employees and stakeholders. Involving others in your decisions is a critical component in carrying out your goal effectively. So be prepared to answer any questions or concerns that may arise.

Review your decision: An often unnoticed but essential step in the decision-making process is evaluating the performance decisions. You can review this by yourself by analyzing what you did well and what could be bettered in the times to come by.


Even the most experienced business owner can learn from their mistakes, be prepared to adapt your plans if necessary, or move on to other possible solutions. If you find that your decision is not going according to plan, there are a few steps you should check in advance to make a better choice.