What Are the Different Decision Making Styles for Business Leaders?
According to the Bureau of Labor and Statistics, about 20% of businesses fail during their first year. A big reason to these companies’ fallout is because of poor planning. As a business leader, you are responsible for making decisions that could make or break your company.
While some people are born natural leaders and seem to have a knack for knowing the right thing to do in any situation, others may find this area to be a more challenging task. If you fall into the latter category, don’t worry — there are still ways to lead your team and effectively make decisions — you just need to find the right decision-making style. Here are some of the most popular decision-making styles for business leaders:
The Conceptual Decision Maker
SMRT, also known as Singapore’s top bus and rail operator, made waves in 2022 when it announced the appointment of Ngien Hoon Ping as its new Group CEO. This decision was led by Neo Kian Hong, who is known as a conceptual decision-maker.
As the name suggests, conceptual decision-makers focus on the big picture. This type of leader can see the long-term effects of their decisions and can make choices based on where they see the company going in the future. They are generally very strategic and can think outside the box to create creative solutions to problems.
If you’re a conceptual decision-maker, you may struggle with making decisions that are too small or insignificant. However, it’s important to remember that even the most minor decision can impact the overall direction of your company. Focusing on the big picture ensures that your choices are always in line with your company’s goals.
The Analytical Decision Maker
If you’re the type of person who likes to have all the facts and figures before making a decision, the analytical decision-making style is for you. This method involves breaking down a problem or situation into smaller pieces to help you better understand all aspects of the issue. It works best when you have time to gather data and information before coming to a conclusion.
You can learn to become an analytical decision maker by improving your research skills and learning how to ask the right questions. This method isn’t always the quickest, but it can help you avoid making impulsive decisions you may regret later.
Many famous business leaders today are analytical decision-makers, including Bill Gates and Mark Zuckerberg. These people are known to be data-driven and use a systematic approach to problem-solving. So, if you have a knack for numbers and enjoy working with data, this could be the right decision-making style for you.
The Directive Decision Maker
The directive decision-making style is all about taking charge and being in control. This type of leader is usually very confident and decisive. They don’t generally second-guess themselves or their decisions, which can be a good personality trait in a business leader.
However, being a directive decision-maker also has its downside. This style can sometimes come across as bossy or arrogant to others, alienating team members. So, it’s crucial to be mindful of how you balance your actions when using this style.
Some well-known directive decision-makers include Steve Jobs and Oprah Winfrey. These leaders are known for their strong personalities and ability to take charge of any situation. Nonetheless, being confident and decisive is an excellent place to start if you want to be a successful business leader. It’s a style that can get results when used correctly.
The Behavioral Decision Maker
Of course, many leaders channel an empathetic nature into their decision-making style. You may use a behavioral decision-making style if you find that you’re more sympathetic to others and consider their feelings before making decisions.
This type of leader takes an interpersonal approach to problem-solving. They work to build relationships and create a positive environment for their team. This strategy considers how their decisions will affect others before taking action.
Behavioral decision-makers known are Mahatma Gandhi and Mother Teresa. These leaders are known for their compassion and ability to connect with others. It may be a suitable decision-making style if you want to channel a similar personality.
Although the behavioral decision-making style may seem like it’s all about making everyone happy, it’s actually an effective way to get results. This style can help build trust and rapport within a team, making it more likely that people will follow your lead.
No one decision-making style is better than the others. Instead, finding the style best suits you and your company are essential. Each of the techniques outlined above has its strengths and weaknesses. So, it’s up to you to decide which will work best for you and your team.