Journey of a Serial Entrepreneur

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How to get from where you are to where you want to be

5 Steps on How to Make a Decision

“When you cannot make up your mind which of two evenly balanced courses of action you should take – choose the bolder.” William Joseph Slim

Over the course of this last week I have talked about the decision making process. This process can help us in making difficult decisions. The process forces us to take action and to move from one step to the next in a continuous flow. Standing still has to be avoided at all times. From a business perspective, not being able to make critical decisions or to keep delaying them, will eventually lose you any competitive advantage you may have had. The world unfortunately does not wait for us to find the right time or right opportunity to make a decision. Listed below is a methodology I use for decision making:

1. Objective Clarification: The first step when making a decision is to look at the larger picture. Decision making is not an isolated process of just meeting specific needs, it is one in which broader goals and aims have to be taken into consideration for the future. It is only after clarifying what we hope to gain or learn from the decision we take, do we move to the next step. To learn more on how to clarify objectives behind a decision please click here.

2. Data Collection: The second step involves getting all the facts and figures required to make a decision. This could include, research, surveys, feedbacks or any other form of data collection which would provide us with information to help make a decision. The truth is, it is not possible to have all the facts and figures specially in a time bound situation. Life is about making optimal choices based on, often incomplete information. One must not let lack of data hinder us from making decisions. To learn more about data collection please click here.

3. Listing Options: Once we have adequate data about decisions we have to make, the next step in the process is to develop a list of alternatives. The purpose of this list is to put down on paper different options available.There will always be several possible alternatives available when one has to make a decision.Making an endless list of possible alternatives is not wise, and frankly, will waste a lot of time. Be specific in what you want and develop your alternative list accordingly. To learn more about developing an option list please click here.

4. Evaluating Options: I use a simple model which helps rank options according to our objectives and weight-ages given to specific factors. This enables us to rank each option in an unbiased manner and helps to gauge how they compare against each other on a holistic level. This model is developed on the basis of the prior 3 steps discussed. To learn more about the model and how to use it for your decision making process please click here.

5. Making a Decision: After successfully completing the four steps outlined above, we reach a point where we should have enough information to make a decision. Most of the time, we will not have all the information required, life is all about making optimal choices based on incomplete information. We should not let this affect our decision making process. Once a decision has been made, one needs to take responsibility for it and ensure follow through. To learn more about the final step in the decision making process please click here.

If one were to look back at life, there are bound to be decisions which, in retrospect were not the correct one. The important thing to remember is not the fact that one made a wrong choice, but whether we learned from the mistake or not. We should not let past failures inhibit us from making similar decisions in the future. If one were to take such an approach,  very little progress forward would be made. As mentioned earlier, life is short, we need to have the courage of our decisions, confidence to trust our gut instincts, and keep moving forward. I wish you all the very best on all your life decisions in the future.

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Can you make a decision?

“In any moment of decision, the best thing you can do is the right thing, the next best thing is the wrong thing, and the worst thing you can do is nothing.” Theodore Roosevelt

After weighing all possible alternatives, a decision making point is reached. This stage in the decision making process is where many individuals face problems. Some of the reasons I come across quite regularly for this are; there is inadequate information, I have received mixed reviews from feedback which has further confused me, I want to put this decision off for a while to think about it more, I cannot make this decision alone and, what if I make the wrong decision? These are all valid reasons to put off making a decision. However, if this becomes a recurring pattern in life, then, very little progress would be made when a difficult problem arose. 

Once our homework is done, and we believe we have adequate information about the decision at hand, we have to take a leap of faith. Waiting for the perfect situation, the perfect business opportunity or the perfect partner will invariably hold you back. We have to be proactive and want to move forward, this not only increases confidence, it provides invaluable experience and feedback. It is in moments of decision that we find out who we really are, and what we are made of. Use these opportunities to showcase your skills and abilities rather than shying away from taking responsibility. 

Once a decision is made, the next most important aspect of this entire process is, follow through. We have to be a 100% committed to the decision we make, and take full responsibility for it. This is not a time for excuses or getting cold feet. We must prove to ourselves, as to those affected by the decision that we have what it takes to execute the decision. If one makes a habit of changing one’s minds after taking a decision, this reflects poorly on character and value systems. In business, such a person would be deemed unreliable, and lacking the confidence required to take responsibility. Hence, next time you are put in a position to make a decision, do your homework well ,and when ready, make the decision and follow through. As an added benefit, the feeling one experiences after making a correct decision is amazing, and should be the end goal every time!

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Ranking your Options

“Choice of aim is clearly a matter of clarification of values, especially on the choice between possible options.” W. Edwards Deming

 Once we have developed a list of alternatives, the next step in the decision making process is to rank them. The ranking process requires basic elements to keep it simple, yet effective. The first element required is developing a criterion list to assess all your possible alternatives against. Listed below, you see an example alternatives list I have created for the laptop example I mentioned yesterday. For this example I singled out what I felt were the most important factors. The same example can be adjusted for just about any decision. Whether you are assessing a new car, business idea, partner, employee or a potential investment opportunity. Develop a list of criterions against which you can assess all the available alternatives. It is important to rank all the alternatives against chosen criterions. 

The next element that is required is, assigning weight ages according to your preferences. I used a 10 point scale for this example, however, there are other ranking scales, and I have personally used a 100 point scale as well. This depends entirely on the complexity of the decision, and the number of criterions being used to assess each alternative. The next aspect is to assign specific scores to each option, based on the criterion. I have used a 5 point scale for the assessment in the example below, 5 meaning, very satisfied and vice versa. After you grade each criterion, multiply the scale score with the assigned weight-ages. Finally, add each options total score, and you have a decision based on resulting total scores for each alternative.

Laptop Rankings

A further complexity to the model above,  particularly when making business decisions, is to add a risk component. I left this component out of the above example to make it easier to understand. Adding a risk component can help you weigh the risk-reward ratio of each alternative. This has been very helpful to me when assessing different business opportunities. The model described above, brings together all the factors we have spoken about in the last couple of days. It is important to understand the logic behind each of the components, and the manner we arrived at this stage. Once we have a total score, we are ready to move to the last stage of the decision making process.

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Developing Alternatives

“The absence of alternatives clears the mind marvelously.” Henry Kissinger

Once we have adequate data about decisions we have to make, the next step in the process is to develop a list of alternatives. The purpose of this list is to put down on paper, the different options available. The purpose of this exercise is to write down all the options floating in one’s head and translate them into a tangible option. This helps put perspective on the decision at hand by giving an overview of the options available. Many individuals like to write down as many possible alternatives as possible at this time. I think this complicates the decision unnecessarily.

The point of adding structure to your decision making process is to streamline it and make it more efficient. When we don’t do this, decisions take longer because of the incessant processing going on in your head. This ends up not only confusing an individual, but also significantly prolongs the time it takes to reach a decision. Therefore, when you develop a list of possible alternatives, only jot down those you are seriously considering and which fit the larger objective behind the decision process. For example lets say you want to buy a new laptop. You have been to the stores, got all the brochures and now sit down to make a list. If your list contains 20 possible laptops you are interested in, the decision will take forever to make. I had to make this decision a couple of months ago. I needed a laptop which was aesthetically pleasing and highly portable. I took a look at a couple of alternatives, the choice came down to a Sony or an Apple, I then made  a decision and settled on the Apple.

I think many of us make the decision making process a lot more complicated than it actually needs to be. There will always be many possible alternatives available when one has to make a decision, like choosing a college, a car, a computer or a mobile phone. Making an endless list of possible alternatives is not wise, and frankly, will waste a lot of time. Be specific in what you want and develop your alternative list accordingly. If for some reason one cannot find enough alternatives or an alternative that fits your criteria, it is possible to delay making the decision. However one should not use this as an excuse to be complacent or avoid making a decision. Once we have our list of alternatives ready, we can move to the next step of the process. 

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Getting your facts right

“Trust your hunches…Hunches are usually based on facts filed away just below the conscious level.” Dr. Joyce Brothers

Carl Jung did the foundational research behind the very popular MBTi personality type test. One of the capabilities of the test is to assess the manner in which we process information and reach decisions. On one extreme of the scale, you find individuals who require all the facts and figures to help them make a logically correct choice. On the other hand of the scale, you have individuals who trust their intuition, and tend to make what may be perceived as more emotional decisions. I happen to be one who trusts intuition a lot more than depending on facts and figures. There have been times this decision making process has got me into trouble, however, the times that things have worked out in my favor outweigh them. What it comes down to is personality type, and our values and belief system. One needs to be comfortable with whichever path one chooses to take.

The truth is, it is not possible to have all the facts and figures specially in a time bound situation. Life is about making optimal choices based on the often incomplete information. One must not let lack of data hinder us from making decisions. If one finds oneself delaying making difficult decisions or finding ways to avoid making such decisions, we need to ask ourselves the cause of such behavior. Confronting this head on will help enable us to progress in life. Life is too short to run away from making decisions which need to be made. We need to have the courage and confidence to trust our instincts and if we make a mistake, to learn from it. A conscious decision needs to be made about actually living life rather than just spectating it from the sidelines.

When in doubt or with little information to base a decision, consult others who may help guide you. This helps get a different perspective on the matter and may make it easier to make a decision. I have spoken about mentors in great detail, and how they have consistently helped me in decision making relating to both my life and business. Sometimes it just takes that little bit of re-affirmation, and at others, it may require a radical point of view. Either way, if we do not ask others for feedback and advice, we are not allowing ourselves to grow as individuals. Once you have your facts, figures and gut feeling, it is time to move to the next step of the decision making process.

Related Articles:

– How do you process information?

– How do you make a decision?

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5 Steps to Manage Conflict

“The harder the conflict, the more glorious the triumph. What we obtain too cheap, we esteem too lightly; it is dearness only that gives everything its value. I love the man that can smile in trouble, that can gather strength from distress and grow brave by reflection. ‘Tis the business of little minds to shrink; but he whose heart is firm, and whose conscience approves his conduct, will pursue his principles unto death.” Thomas Paine

There is no doubt, managing conflicts is a challenging task. On my journey as an entrepreneur I have had my share of conflicts. I think working in close proximity and under much pressure, tends to raise conflicts more frequently in entrepreneurial ventures. It is hence important to know how to handle them more effectively. Losing a team mate, a client or a supplier can spell the end for a young startup. Listed below are five steps to help manage conflicts in a systematic and structured manner, and thus reach a fair and faster consensus.

1. Facts: Before anything is discussed or negotiated, it is important that all relevant details are documented. This includes finding core reasons behind the conflict, the stage the conflict is at, and the affected parties. It is important to be objective when documenting these factors, and ensure that each one of the affected individuals is part of the process. To read more about the fact finding process please click here

2. Ground Rules: Developing a set of rules and structure can greatly facilitate conflict resolution. It is important to let all the participants know what is expected of them. It also helps to formalize the actual negotiation process with a set agenda, and a mediator if possible. Setting up such a structure helps the negotiation process run smoothly, with each participant well aware, before hand, about the discussion agenda. To read more about setting appropriate ground rules please click here.

3. Negotiations: The actual negotiation stage brings all the concerned parties together, to discuss their points of view in a structured manner. It is important to insist that each participant keep their mind open to different options, even if they do not agree with them. Keeping a close mind and remaining stubborn makes the process more challenging to manage. During this stage, notes need to be taken down regarding options discussed and differences and concerns that were voiced. To read more about the negotiation stage please click here.

4. Evaluation: After the negotiation stage, all the participants are called back at a later date to discuss the options discussed during the negotiation stage. At this time, it is important to establish a set of objective criterions, to ensure the options discussed are feasible, fair and take into account the larger picture. There are several strategies which can be used at this stage to rank or combine options, and to come up with a mutually agreeable option. To read more about the evaluation stage please click here.

5. Closure: The final stage of a conflict management process involves bringing closure to the argument. This is done by  formalizing whatever was discussed and decided into a written document, which clearly outlines everyone’s responsibilities and roles. It is important that a commitment is made to follow through on what was decided. Periodic meetings can be established to ensure that everything is moving as planned, with suggestions and feedback provided along the way. To read more about closure please click here.

I have followed this system in conflicts I have been involved in. However, given the variances in every conflict, one needs to improvise along the way. Managing conflicts is a challenging task, especially when they have been brewing under the surface for long periods of time. Reaching a formal agreement acceptable to all the concerned individuals is a major feat. It requires patience, an open mind and the willingness to be flexible. It is much easier to be stubborn and refuse to change a position, rather than be adaptable and sacrifice for a more congenial and brighter future. 

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Closure

“The most intense conflicts, if overcome, leave behind a sense of security and calm that is not easily disturbed. It is just these intense conflicts and their configurations which are needed to produce valuable and lasting results.” Carl Gustav Jung

Closure is one of the most critical components of successful conflict resolution. Without it, there is always something unfinshed hanging in the air and this makes people uncomfortable. I am sure many of us have been involved in conflicts which have ended without the required closure. It is not a pleasant situation, and if you then have to continue working with the persons concerned, it can be most awkward. To avoid such situations and reach closure, there are a few things I work on ensuring. 

1. Written Plan: Ensure that everything that has been discussed and decided upon, is written down in a formal document. This document should outline levels of future responsibility, possible compensation agreements, changed working arrangements or any other directives that are to be carried out. Putting it all down on paper makes it tangible, and easy to take ownership of.

2. Commitment: It is important that once a mutually agreeable option has been accepted, tasks and roles allocated, everyone commits to whatever they were assigned. A personal commitment is as important as having faith in the abilities of others to carry out their parts. This is not a time to doubt the follow through abilities of others. At this time more than ever, it is necessary to begin and rebuild the trust which may have been lost in the process.

3. Periodic Checks: A system to routinely check the progress of what was decided and agreed upon is vital, to ensure everyone is keeping their end of the deal. Such checks help monitor team progress and provide valuable insight into the team or individuals working dynamics. Such meetings can be a sounding board for suggestions, complaints or feedback. 

Closure after a long drawn out conflict is a liberating and empowering feeling, and helps us face challenges with ease and confidence. It reminds us, that survival in this world, requires us to learn to be flexible and move forward. Being stubborn and refusing to see different sides of a conflict, renders us incapable of moving forward. 

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Evaluating Options

“There are three ways of dealing with difference: domination, compromise, and integration. By domination only one side gets what it wants; by compromise neither side gets what it wants; by integration we find a way by which both sides may get what they wish.” Mary Parker Follet

Once the negotiation stage has been cleared, all options presented and discussed need to be evaluated. During this stage, respective parties need to set their differences aside, and work towards reaching a consensus where both parties are satisfied with the outcome. This is by far one of the most challenging stages in the conflict management process. Much of the time such situations conclude in deadlocks, because one party may not be open to entertaining any option other than one which benefits them. Conflict resolution needs a certain level of sacrifice from each party to reach a mutually beneficial agreement. 

Some steps which can help reach a mutually beneficial agreement are:

1. Developing Criterions: Prior to starting this phase it is important to establish some base criterions. These include ensuring that all options discussed are feasible and fair. It is also equally important to identify a set of objective criterions which help each of the participants look at the larger picture. This helps set a tone which in turn helps the flow of the discussion and reaching a mutually beneficial agreement, faster. 

2. Ranking: To begin the process, rank the options discussed in the negotiation stage. This will help the participants decide jointly which options address the needs of the group and their own needs. This is a tricky exercise, as each participant would like to rank the options which benefit them the most, on top. To resolve this issue, each option should be graded against a set of objective criterions which are mutually agreed upon. This helps bring objectivity and fairness into the process.

3. Combining of Options: I have found that it is often possible to combine certain options, thereby creating a mutually acceptable option to both parties. Through this method we can bridge differences in opinions, which may limit parties to reach a mutually agreeable agreement. This takes some creativity,  at the same time, helps to think out of the box when resolving conflict. 

There needs to be much give and take at this stage. Sacrifices need to be made, at the same time it is important to remain objective and work towards a mutually beneficial agreement. During this stage one needs to be creative and think out of the box. A deadlock must be avoided at all costs, if a party becomes stubborn and refuses to change positions, we need to factor this dynamic in, and find alternatives which may be acceptable to them. 

 

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Tackling the Issue

“In a conflict, being willing to change allows you to move from a point of view to a viewing point — a higher, more expansive place, from which you can see both sides.” Thomas Crum

Proceeding with actual negotiations after laying down a comprehensive foundation for determining the facts and establishing ground rules, makes the exercise easier. With a set agenda, each party is fully aware of what will be discussed. The negotiation stage is a a critical one in conflict resolution. Without each party making the effort to bring the issue to the table, and discuss it candidly, very little progress is possible. Once the concerned individuals have made the effort to come together, and discuss the issue at hand, it is important to keep the discussion moving in a focused and objective matter. 

Key points to be kept in mind at the negotiation stage are:

1. Remaining Open: It is quite natural to close one’s mind to the other person’s point of view in a conflict. If such a stance is taken however, to reach a mutually agreeable decision will be a difficult and long process. Therefore, it is essential in such a situation, to not just remain open to the other party’s point of view, but the larger picture as well. 

2. Developing of Options: When a conflict is being negotiated, it is important that each side offers possible options to resolve the matter at hand.  I have been involved in conflict resolution, where the discussion revolves only around options which are not acceptable to either side. Therefore, being creative in the development of options is vital, as is abstaining from judging or criticizing them.

3. Notes: In the heat of discussions, we tend to lose track of what was said. This only complicates matter further. During the negotiation stage, it is hence vital, that notes about major agreements, disagreements, options and any other important piece of information are taken down, this will help in resolving the matter at hand.

These pointers are cornerstones to keep negotiations open and healthy. They may be very simple steps, but they have been extremely helpful to me when I have been involved in negotiating conflicts. In the end, it comes down to keeping things simple and straightforward. It is only when we complicate issues, with more details or people, do they become more of a challenge to resolve.

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Setting the Stage

“Instead of suppressing conflicts, specific channels could be created to make this conflict explicit, and specific methods could be set up by which the conflict is resolved.” Albert Low

Most times there is no formal process on how a conflict is supposed to be resolved. Although setting up stringent structures can be stifling in an organization, it can streamline processes and make them more efficient. My thinking has shifted over time, from a loosely managed structure to a more defined one. The reason for this fundamental shift is due to the fact that entrepreneurial teams often consist of very strong personalities. When individuals or groups with strong personalities entangle in a conflict, one can expect a fair share of fireworks. Tackling this with set structures in place, helps facilitate such situations, as also controlling the external impact of such conflicts. 

Listed below are a couple of primer steps to help set the stage before the actual negotiations begin:

1. Ground Rules: It is important to set strict guidelines, to keep the negotiation stage as civil as possible. T Controls on language, tone of voice and relevance to the discussions are essential. Usually, if uncontrolled, irrelevant examples are brought into arguments, making conflict resolving more challenging. Keeping strict focus on the issue at hand in a healthy environment is vital.

2. Agenda: Before affected individuals or groups are called in for negotiations, an agenda needs to be developed to ensure that all the key issues will be discussed. Through this, both individuals can be given adequate time to share their points of views. By formalizing the structure of negotiations, they become more effective and relevant to the issue at hand.

3. Organization: Adequate notice needs to be given to the concerned individuals about the time and venue of the negotiations. The location must be set in a neutral space, where neither side will feel vulnerable or uncomfortable. This is an important step to ensure a smooth and natural flow in the discussions. At the negotiations, minutes or notes must be taken of all discussions and possible conclusions.

4. Mediator: If the issue at hand has escalated to a higher intensity level, it may be necessary to bring in a mediator or facilitator for the negotiations. This will provide unbiased mediation to help keep the negotiations on track and provide objective analysis. Both individuals must agree on the negotiator  to ensure a comfort level.

By following the above steps, expectations may be set prior to the negotiations. The affected parties will have a clearer idea of what will be discussed and how the negotiations will be facilitated and managed on the day itself. It makes the entire negotiation process more efficient and transparent, which in turn can help resolve the conflict as soon as possible.

 

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