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The ability to take timely, clear and firm decisions is an essential quality of leadership. So that means you, if you are running a business.

Many decisions are routine or operational, such as pricing your services or resource allocation. Some are strategic – should you introduce a new service or open a second office? Then there are decisions that have to be made to solve a problem, sometimes in an emergency.  

Always be positive. But taking decisive action doesn’t mean making decisions on the spur of the moment. One of the first things to assess is whether a decision must be made immediately or whether it can wait. If a good customer asks for a discount, you have to decide on the spot whether to grant the concession in order to keep the business and the customer’s goodwill. But if you are considering a programme of price cuts, you can decide what to do at a time to suit you. 

With most decisions you are facing, the basic process should be the same, time- permitting. Identify the problem or issues. Then undertake some kind of analysis, prioritising significant factors. The so-called ‘Pareto rule’ says that only 20% of factors are really important so give them more weight than the other 80%. Finally, evaluate the options, but remember to avoid ‘paralysis by analysis’! Americans have a reputation for over-analysis while we Britons don’t spend enough time on it. The Japanese are nothing if not thorough, but then take a decision quickly.

Your attitude to risk will be important, as many decisions have uncertain outcomes which makes them uncomfortable. Risk is often relative. For example, a company has overstretched itself financially by investing in a new factory. They could halt the project but may then risk quick financial collapse. However the plant could meet its targets given time. In this case, retreat is probably riskier than proceeding.

Also consider knock-on risks. Cutting staff numbers may save money, but not if it damages customer service.

Remember that you don’t need to go it alone. External advisers can provide the combination of expertise, experience and objectivity that you lack. But approaching too many people with contradictory opinions may just confuse you, so be selective. Finally, remember that reversing your original decision after hearing others’ views is not a sign of weakness.

·           Don’t make a decision immediately unless the solution is obvious

·           Avoid rushing an important decision just because you are under pressure

·           Write down all your pre-decision fears on paper, and then throw them in the bin!

·           Never sacrifice the future for the short-term unless there is no option

·           Avoid just accepting conventional wisdom. Be open-minded about alternatives

·           Once a decision is clear, make it quickly rather than slowly

·           Don’t be afraid to change the decision if circumstances alter