September 2, 2015
by Kahaliah Richards
“Look it up, size it up, but don’t postpone your life and business because you won’t make up your mind”
Decision making is a necessity of all leaders who are owners and manage a team, customers and their business. In order to drive progress and momentum forward for a better future, while motivating a team to high performance and synergy, there are many types of decisions that must be made.
The owners /leader’s accountability is to be clear on what type of decisions warrant the right method and style. This will set the stage for team results, commitment, acceptable behaviors, boundaries and guidelines. The only mistake is to make NO DECISION at all.
1. Decision Type -Owner and equity business structure: Different legal structures include sole proprietorship, partnership and corporations. Each of these business structures has their own implications in terms of assets, goodwill, liability, profit and cost-sharing. Also, income taxation and wealth management planning, accounting and legal choices that impact the value and succession plan of the practice owners and leader.
Decision Style –Autocratic (with outside experts): Leader maintains total control of the decision and does not include any employees or managers and takes on the responsibility of the good or bad result.
• The advantages of private decisions of ownership (which may involve outside experts) are the experts have the experience to make the decision faster and, in some cases, can respond to a crisis or emergency situation and only the owner is personally accountable.
• Disadvantages are that the one-person style can cause resistance and negative employee morale if they are not informed of the “why” of the decision or how it will impact them in their role.
2. Decision Type–Financial Budgets: Business owners constantly face decisions about budgeting and how to manage the revenue and expenses to assure growth in profit. These decisions include budgets for repairs /faculty maintenance, technology, rent /lease, debt funding, supply budget, marketing dollars and equipment budgets.
Decision Style –Manager Style: An office manager who is trained in budgets and represents the owner and is accountable for making and meeting budgets amounts and communicates this down to the team.
3. Decision Type–Strategic Decisions: Longer -term decisions that will place the business in a growth position for the next 3-5 years. The leader has the most to lose if the vision and strategic decisions don’t combine team work and a shared vision with the employees and key department influencers.
Strategic Decisions include expanding hours, adding providers, offering more procedures, aligning with industry networks, learning with peers, changing office policies, renovation or relocation.
For more, please visit: http://transitionsonline.com/blog/tuesdays-with-transitions/decisions-decisions-decisions.html
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