Correct decisions are important because they contribute to moving forward, while wrong decisions cost money, careers and the reputation of the decision-maker.

Some degree of risk is always involved in the decision-making process, and FP&A personnel come into this process to mitigate and evaluate that degree of risk.

FP&A team supports its business partners with alternatives and provides evidence to choose the best financially viable option.

Consciously or unconsciously, in most the organisations, the decision-making process ends up with the following:

1. Identification of the decision to be taken, 
2. Information gathering, 
3. Identifying alternatives, 
4. Analysing alternatives, 
5. Choosing the best alternative,  
6. Implementing the decision and 
7. Post-decision, there are reviews with some learnings for the future.  

An investment decision can take years of implementation, pricing decisions can take months of analysis, hiring of a candidate can take six months to a year, and a new product or innovation can take up to 4 years to reach its final destination.

Welcome to the corporate world, where all the possible steps are taken to mitigate business & financial risks in the decision-making process, not realising the risk of delayed decision-making.

The insight behind the delay in decision-making is either an uninformed decision-making team, uncertainty of variable options or lack of risk-taking ability of the leadership team. Most of our essential decisions involve stakeholders who often have differing perspectives. The focus of decision-makers tends to be internal rather than external, leading to significant opportunities and threats being overlooked.

The big question for FP&A professionals is how they contribute to improving the speed of the decision-making process without compromising the outcome of the decision.

The effort to analyse all the possible scenarios and give equal importance to the considerations of all the stakeholders brings down the decision-making process even before it starts. It may seem obvious, but all too often, we launch into the analysis without properly understanding what our objective is (or should be). This can lead us to get the right answer to the wrong question! 

The biggest hurdle to fast and correct decisions is criteria & information overload.

Here are some of my tips to make smarter decisions quickly:

1. Stick to your plan

It is vital that every big or small decision you make is within the scope of your mission. You don’t have the mental or physical resources to spread your net too wide and still succeed. So, always ask yourself which option best moves you toward your mission’s goal, and then the choice should be simple.

2. Set a time limit

Give yourself a time frame to collect and analyse all the information that leads to the decision. With reasonable time pressure, you will get to the heart of the matter quicker, leading to the collection of opportunities and risks related to the decision faster, which you might not otherwise do.

3. Control what you can control

It’s essential to focus on what is in your direct control and not to focus on uncontrollable factors in the decision. Focus on things outside your control will result in unproductive time spent and, consequently, delayed projects. Focus on controllable factors will lead you to make big decisions quickly.

4. Data to Decision

Bring a mindset shift from being data-centric to decision-centric. Get the relevant data required to analyse the situation. Your analysis should be used to improve a problem area and to influence & guide the decision instead of an analysis that no one acts on. 

5. Listen to your Gut

One thing I have learned from entrepreneurial decision-making, which is a lot quicker than corporate-style decision-making, is entrepreneurs give equal importance to their gut feel and the fact-based business analysis shared with them. These decision-makers rely on their experience and feelings to make quick decisions. They don't mind taking risks and move confidently forward through life.

6. Take the Decision and own the outcome

The decision-maker should have the confidence to accept the outcome of their decision, which can go either way. There should not be a fear of a wrong decision, but rather a self-belief that I can address any shot coming of my decision.

It is important to know that “impeccable” decisions are an illusion. Decision-making will always be an exercise in coping with an unknowable future. No amount of planning and discussion can ever promise a “quality” decision. However, it is expected from the decision-makers to own the outcome of their decision, which might lead the decision-maker to another decision.