5 Myths About Decision-Making in Business

Running a construction business is like navigating a complex maze of choices. Decision-making is the cornerstone of success in the construction industry, from choosing building materials suppliers and trade contractors to managing budgets and timelines.

Top 5 Myths About Decision-Making in Business

In my experience, there are a lot of common misconceptions and myths about the business decision-making process that hold company leaders back. Here are my top 5:

Myth 1: Whoever is higher on the organizational chart is better equipped to make decisions

Most construction businesses are set up so decisions are made too slowly. This is because most of us expect those higher on the organizational chart to be better equipped to decide. After all, who but the boss is best equipped to make decisions for the business?

But is that really true? Who, exactly, should the boss get feedback from before making a decision?

It turns out that the people closest to the problem and who have the most extensive knowledge, experience, and perspective on the issues at hand are the best equipped to make the decisions … and many of them work at the organization's lower levels (or front lines).

Tip: The most powerful people in your company are rarely the ones who are actually on the ground doing all of the site work. As part of the process of making decisions, seek advice from those team members who are closest to the action.

Myth 2: Decision-making should take time

The truth is that most business decisions don't take that much time to make. In fact, most decisions can be made in minutes. Otherwise, you're likely just procrastinating.

Many business leaders procrastinate in the decision-making process because they're afraid of making mistakes or, worse, they're afraid of not being liked … and that’s a red flag. Procrastination can lead to missed opportunities, increased stress, and can even result in profit bleeds for your construction business.

Despite what you may think, you don't actually need time to make better decisions. What you need is good data, focus, and urgency, which is the ultimate weapon in beating procrastination.

Data is essential for evidence-based decision-making, and good data can provide the accurate, reliable information you need to help make informed decisions that are based on facts rather than just intuition or guesswork. Data can also help business leaders identify questions that may not have previously been apparent and can provide fresh insights.

Find out more about the role of good data in business decision-making here.

Myth 3: I have to make the decision alone

While consensus-seeking should never be your goal, it doesn't mean you always have to make decisions by yourself.

For a decision to be properly formed, you need to involve the right people (but not all people) on your team who can contribute meaningfully.

The right people with the relevant expertise in your team articulate their views so they can help you, the accountable decision-maker, to broaden your perspective and choose the best path.

Myth 4: My ideas are the best

If you've ever found yourself clinging to the belief that your ideas are the best, it's time to reconsider.

Remember, you're part of a team. By holding on to the "My way or the highway" mentality, you're essentially blocking innovation and collaboration, which are vital for business success.

Myth 5: Putting off a decision is better than making the wrong decision

How many times have you heard this rationalization? In fact, it often leads to a paralyzing cycle of indecision. And the longer you delay a decision, the more stress and anxiety it can generate.

Not only that, but indecision also means you're missing out on opportunities that could have arisen from taking action earlier.

The reality is that in every decision you have to make, there is a cost of inaction. And, in most cases, making no decision is more risky than the making wrong decision.

Instead of striving for perfection, aim for a well-informed and thoughtful choice. Accept that mistakes are a part of your learning experiences.

As a construction business owner, your decisions shape your company's future. By addressing decision-making problems and learning how to make faster, better decisions, you can steer your construction business to greater heights.

To get an in-depth understanding of how you can make faster, better decisions like a CEO, listen in or watch the full episode of the The Construction Leading Edge podcast.

PB Topical Ref

Leadership

Business Management Best Practices