5 Decision-Making Tips
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There is a "safe" strategy to optimize the outcome of your risks and minimize your losses. It’s a simple 5-Step roadmap.
1. EVALUATION: Compare and weigh out your best and worst-case-scenarios. Clearly define and understand the situation and the consequences. Take the succesful Blackjack player. He/she, takes all aspects of risk into consideration before deciding to stick with the hand that’s been dealt or not dealt. What are the odds that the next card is what is desired? Before taking risks in your industry or business, ask such questions as:
How influential will the value of that change be and how will the result impact your business, industry or economic landscape?
Will the risk be too drastic or dramatic for the market to embrace?
Do you have the time, the resources and an effective marketing strategy to subdue consumer resistance or confusion? Timing, packaging, and education of target audiences, play key roles in success or failure of any business venture, service or product.
What can you live with in terms of loss? How much money is at stake and can you afford to lose that amount.
What do market research percentages/data suggest? If the odds are in your favor, take the risk… consult step 2 to increase the odds or success.
2. EMOTIONAL INTELLIGENCE: Have a pulse on what the market is ready to embrace. If you have invested time in bullet point 1 (evaluation), then the accumulated data combined with your awareness of the market, customer purchasing behaviors and trends, will put you on track to succeeding. Be acutely aware that the market might resist regardless of how incredible the innovation is. Take into account how well your team is equipped to share the message. How much conviction and resources do you have up your sleeve to counter-act potential consumer alienation.
3. INTUITION: The great trailblazers and innovators connect with, and trust their intuition in conjunction with the element of planning and analyses (market research in business). The greats just seem to have a knack of knowing when and how to risk and expand their horizons. Intuition is not a blind act built purely on belief, it is your truest sense of knowledge. Intuition and instinct are not synonymous. Instinct is immediate and purely driven by the reptilian brain. Intuition includes your moral compass (values), gut, experience and the subconscious mind combining with your heart to tell you what is best or what is a negative vibe or energy.
Your gut or heart simply know. Modern research is showing that the heart sends more signals to the brain than the other way around. On a holistic level, the heart is connected to the source of universal knowledge. Police detective refer to this as a hunch… something they not only trust, but obey. Design a more promising future by connecting to your intuition. Leverage its power.
4. ADAPTATION: Innovation is a progressive journey that demands strategic change and adaptation. The willingness to fail along that journey is a must... there is always a period of incubation and a learning curve to navigate. Risk and innovation require patient nurturing while the product is sculpted. Without an ability to adapt, all and any risks are borderline reckless and ill-advised.
5. VISION: Let’s state the obvious. Without a clear vision (or mission), the venture is a train wreck in the making. Innovation offers no guarantees, though a plan or roadmap shortens the learning curve and the journey. Your vision should align with your core values. Integrity is a trait that delivers long term results. Your brand strength depends on it. Integrity inspires loyalty. Apple have had unsuccessful product launches, but years of integrity and honoring their vision, keeps clients coming back for the new innovation. Their clients know that Apple will quickly adapt and make it right. Think back to Microsoft’s Vista (a nightmare that took too long to fix).
The objective of all innovation is value creation. The outcome is optimized by minimizing consumer pain points and elevating the experience. It’s a tough and not so forgiving world out there. Be smart in your risk-taking.
To experience a deeper dive into the topic of risk and innovation, read the revised version of INNOVATION MINDSET - it includes new chapters and improved content. Learn to leverage your inner genius, reach higher and impact your leadership, cultural and personal mindset.
Vital Germaine