Business decision-making is crucial for success and growth. Correct decisions lead to positive business outcomes, while incorrect decisions can cause significant damage. Therefore, decision-making requires a rational analytical process and should avoid emotional decisions based on unsupported information or processes. The ISERVE Method is a tool to improve decision-making, streamline the process, reduce damage from mistakes, and learn from failures for future improvements
What are the steps involved?
1. I: Identify the problem.
Start by understanding the problem. Identify what needs to be fixed and its impact. What is the root cause of the problem? For example, if you try to boost sales by lowering prices or running promotions, the root cause might not be the price. It could be the quality or features of the product not meeting customer needs, or customers switching to other channels that offer home delivery, which your business and product don't yet provide
2. S: Search for solutions.
Think of possible solutions without limiting your initial ideas. For example, in the case of declining sales, the most common solutions are promotions or discontinuing the product, focusing on short-term fixes. However, there are other, more cost-effective and better solutions, such as addressing the root cause of the problem. Developing a new product while simultaneously running promotions, allowing people to try it, and collecting feedback for further improvement is crucial. Therefore, we should always gather data and create alternative solutions to prepare for the future, so we don't resort to short-term fixes that don't address the root cause and result in significant financial losses
3. E: Evaluate options.
Evaluate the advantages and disadvantages of each option. After exploring various solutions, assess the pros and cons of each, including costs, speed, the number of employees required, and the timeframe for results. Consider the opportunity cost, the percentage of success, and the return on investment for each option. Compare all options and choose the one that best suits your needs
4. R: Resolve (Make a decision)
Choose the best option and act confidently once you have all the information. After evaluating the options, make a decision to achieve the desired outcome, considering two factors: 1. Impact, and 2. Opportunity for correction. If the impact is significant and the opportunity for correction is low, take more time to consider the options. However, if you add more options, you will need to spend more time gathering information and evaluating them. Remember that making a decision too quickly may result in missing opportunities and better alternatives, while making a decision too slowly leads to wasted time and a loss of competitiveness against constantly evolving business competitors
5. V: Verify safety (Review safety procedures)
After taking action, pause to review the results and see if they met expectations, and make adjustments if necessary. Once you've made a decision and chosen one option, collect data on the outcomes of each choice. Regardless of whether the results met expectations or not, you must learn from and adapt to every situation. If you think an option looks good but are unsure, start with a small, low-risk option. Always assess both positive and negative signals
6. E: Extract lessons (Summarize the lessons)
"The quality of a decision is not determined by the quality of its outcome." Even the right decision may not always produce the desired result. Therefore, focus on the decision-making process, not the outcome. Reflect on the results of the decision. Learn and develop skills for future application
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