Decision-making tools: how to choose the right one for your business?

Making decisions is a big challenge for many people. Still, it is a fundamental and common process in the daily life of companies. That is why leaders and managers often base their decisions on decision-making tools.

After all, in an organization, a decision affects not only the health of the company but also the performance of the employeesopens in a new tab involved.

That is why decision-making tools are built to optimize this process and make it more accurate. With them, you can understand the whole picture of the situation and arrive at the best solution for that moment.

In this post you will learn about 5 decision-support tools. That way, you can count on several of them to use in your day to day at the company.

Types of decision-making tools

There are many options on the market to choose from. Here, though, we picked the most proven ones, which have helped many companies make increasingly sound decisions in the short, medium and long term.

So check out five decision-making tools you can use in your business and find out which are best suited to your decision process.

Read also: Decision-support techniques you need to knowopens in a new tab

1. Stratws

When looking for efficient decision-making tools, it is essential to consider strategic management software such as Stratwsopens in a new tab. This software not only provides accurate, up-to-date information but also automates management, leaving more time for what really matters: making decisions.

Stratws is a comprehensive solution that centralizes relevant data and information on a single platform. With advanced analysis and reporting features, the software offers valuable insights to support your business’s strategic decisions.

With access to key indicators and detailed analyses, you can make informed decisions, based on concrete data and aligned with the company’s goals.

In addition, the process automation the solution provides lets you optimize operational management, freeing up time and resources for decision-making.

With routine tasks automated and information centralized, you will have more agility and efficiency in getting the data you need to make strategic decisions.

2. Eisenhower Matrix

Among decision-making tools, we should include the Eisenhower Matrixopens in a new tab. That is because it helps set the priority of the tasks to be done. It helps screen the list of available activities, so that you avoid wasting time on tasks that are less urgent within the company.

The Eisenhower Matrix works as follows:

• Organize tasks into 4 quadrants along two axes: urgency and importance.
• Each space for each task will be defined by actions such as: schedule, do now, eliminate or delegate.
• Set task priorities according to the following rules:
• The task is urgent and important: do now
• The task is important but not urgent: schedule
• The task is urgent but not important: delegate
• The task is neither urgent nor important: delegate

Take the chance to download Siteware’s Eisenhower Matrix template now and organize your routine better:

3. GUT Matrix

The GUT Matrixopens in a new tab is one of the decision-making tools that helps managers set priorities in processes. The logic is that, through preestablished criteria, the task owner can easily see the priority of each problem, which helps in making decisions.

It works simply, like this:

Problems are classified into three categories: gravity, urgency and tendency.

Gravity refers to the impact the problem is causing for the whole company. The logic is that if a high-gravity problem is not addressed, it will cause a big impact on the organization.

Urgency, in turn, takes into account the time available to run the project that resolves the problem. In this case, the shorter the deadline, the greater the urgency.

And tendency measures the likelihood of the problem happening again or the tendency for it to get worse over time.

A score from 1 to 5 (where 1 is low and 5 is high) is given for each of the three criteria on each problem. Then the values are multiplied to arrive at a number. The higher it is, the higher the priority.

If you prefer, you can download our 5W2Hopens in a new tab methodology template together with the GUT Matrix right now to prioritize your action plans.

4. Decision Matrix

It works from an analysis of the strengths and weaknesses of each objective. It should be done as follows:

• Create a table with 5 columns.
• List the main ideas in the first column.
• In the other columns, set evaluation criteria. We can highlight impact, vision, effort and profit.
• Every idea should be scored from 1 to 5 based on the criteria.
• Add up the vision, profit and impact criteria and then subtract the effort score.
• The idea with the highest score will be the priority.

5. Pareto Analysis

Pareto Analysisopens in a new tab is a column chart that can order the frequency of certain events. The logic is that 80% of results can be directly tied to just 20% of the factors that can lead to that result.

If you want to build a Pareto diagram step by step, it should work like this:

• List the problems the company has and what causes them.
• Organize the problems in descending order, that is, from the most frequent to the least frequent.
• Calculate the percentage of the problems. Then divide the total causes of each item by the total causes presented. After that, multiply the result by 100.
• Finally, build a chart, with the origin of the problem on the “X” axis and the frequency on the “Y” axis.

If you prefer, download our template now and get access to more decision-making tools to prioritize your tasks:

6. FCA Method

It is used to highlight the causes related to the problem. The method, in which FCAopens in a new tab stands for Fact-Cause-Action, also helps with risk prevention.

To set up your decision-making tool, organize it as follows:

• Identify the Fact. It is usually a piece of data that negatively impacted the company.
• Next, list the causes that generated the problem. If you do not have an exact understanding, analyze your company’s data. A tip that can help is the 5 whysopens in a new tab methodology.
• Then, develop one or more actions to solve the problem. It should be a response about what can be done internally, or externally, to resolve it.

Watch the video (in Portuguese):

How to choose between decision-making tools

The options we highlighted are the most used and the ones that deliver the most results. But which one is best for your type of business? To start, keep in mind that decision-support tools are only part of the solution.

There is no point testing one if you do not put the solution into practice. Also, understand the current situation of the business.

Every company is different, even those in the same segment. Decision-support tools can give a unique view of each company’s performance.

That is why it is essential to start small, preferably with the most urgent issues. One tip is to start by department, picking one area and using one of the decision-making tools.

It is not a quick process, since it requires constant attention. But it is up to the company to work out the best way to reach its goal. Test the decision-making tools and find out how easy it can be to leverage your business.

If you want to take the next step, get to know Stratwsopens in a new tab now. It is a robust tool that helps companies plan, organize their routine, and manage and engage their teams.

If you want to know more, talk to an expert and check it out!