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If You Follow These 2 Rules to Make Decisions, You’re More Likely to Succeed in Life

If You Follow These 2 Rules to Make Decisions, You’re More Likely to Succeed in Life

It’s estimated that we make about 35,000 decisions every day.[1]

These decisions include: what to wear, what to eat, and what to say. In the latter case, you’re likely to have to decide thousands of times a day on what you are going to say to others. This could range from ordering your morning latte at your local café – to putting your point across persuasively in a team meeting.

Decisions… Decisions… Decisions…

They are constantly needed for us to actively partake in life. However, were you taught how to make decisions at school? Probably not. It’s likely that you were also not taught that effective decision making is an essential component of success.

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To help you out, I’m going to give you a brief tour of what skillful decision making looks like, and how you can learn to do it.

You Don’t Need to Be a Know-It-All to Make Right Decisions…

There are two little-known methods of making great decisions. These two methods have been tried and tested over the years by the vast majority of the world’s most successful people.

Can you guess what these methods are? (Please compare your answers to what you’ll read below.)

Winners in Life Make Decisions Quickly

  • Indecision leads to mental fatigue. By making quick decisions, we can maintain our mental vitality, which gives us the best chance of making the correct decisions going forward. As an example… You need to decide on how to reply to a customer complaint letter but keep putting it off. This ongoing issue is likely to negatively impact any other duties or decisions that you need to make at that time. Instead, decide how to reply to the customer – and then write the letter.
  • Quick decisions put you ahead of your competitors. Imagine for a moment that you run your own company that sells computer software. Your industry is super-competitive, and you constantly need to offer new deals and new products to stay in the game. You hear about an exciting new piece of software that is trending across social media. However, you’re not sure whether the software will be a good fit for your business. You could choose to ‘wait and see’ how the software sells for other companies, or you could decide to take the plunge and become a reseller immediately. Luckily, you picked the latter, as the software proves to be one of the most popular releases for years. You won big, because you acted quickly.
  • Perfect decisions are a myth. I know what you’re thinking… Surely, if I spend time weighing up the pros and cons of a decision, I can come to the perfect conclusion? Unfortunately not. In fact, it’s a common misconception that a perfect decision is just waiting to be found. Think of it this way, if you seek the perfect decision, you are probably going to end up making no decision – and thus taking zero action. Successful people look for the best decisions, but they also understand that perfect decisions are few and far between. For example, if you’re looking for a new job, firstly decide what area of work you would like to do. Then narrow this down to specific roles. You may end up with just one role, but usually it’s better to keep your options open by having several alternatives.

Winners in Life Stick to the Decisions They Make

  • It takes time to see whether a decision was wrong or right. Let’s say that you want to move home to a city that you’ve always enjoyed visiting. You sell your current apartment, and then immediately purchase a property situated in the heart of the new city. After your initial enthusiasm has worn off, you begin to see the negatives: the city is noisy, it’s polluted, and you don’t know anyone. At this point, you could conclude that you made a bad decision. However, if you were to give the new apartment and city more time, you may change your mind. For example, you may discover quiet, green parks for relaxing in nature. You may also start to make friends with people you meet when you’re out and about. Eventually, you may come to love your new home.
  • It’s easier to make further decisions based on your initial decision. Career decisions are at the top of most peoples ‘difficult choices’ list. You may have one idea, but your partner or family may have other ideas for you. The secret is to reach a decision promptly – and then stick to it. This has a number of benefits. Firstly, once you have made a decision, you can get on with the required steps to achieve your career goals. Secondly, when you come across any challenges to reaching your goals, you’ll be able to take the necessary decisions within the context of your initial decision. This will help you to make the right choices – and with the least amount of mental effort.

5 Surefire Ways to Help You Stick to the 2 Rules When Making Decisions

While it may take some time to break your current habits, becoming a great decision maker is easier than you may believe.

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Implement the below methods, and watch both your decision making and success begin to reach new heights.

Set your decision criteria

The most important thing when it comes to decision making is knowing exactly what you want to achieve. If you’re not absolutely clear on your objectives, then it will be tough to come to any decisions.

Imagine that you were considering taking up a new hobby but had no idea where to begin. If you leave this to chance, you’ll probably end up doing nothing. A better approach is to analyze what you are already good at and enjoy. For instance, if you love listening to music, then learning an instrument might be a great hobby for you.

Stop endless information gathering

In today’s ‘information age’, we’re led to believe that researching all the facts and figures before making a decision is a necessity. This is okay, until you find yourself becoming addicted to unearthing more and more information about something. When this happens, you become a full-time researcher, and a no-time actioner!

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Break free from this ‘analysis paralysis’ by knowing when you’ve gathered enough information to make a good decision. You can see this demonstrated in detailed reports that always include an Executive Summary. For busy CEOs, the Executive Summary gives just enough information for them to understand an issue – and to make a decision on it.

Assess the risk/reward ratio

Every time you make a decision, there is a risk that something could go wrong – but also a reward if something goes right. Let’s say that you need to decide on a whether to accept a promotion at work. The new position offers more money, but also comes with more responsibility.

To make a decision on this offer, you would need to assess whether the extra money was worth the added responsibility. To give you another example, professional investors live by their chosen risk/reward ratio. Before each investment, they decide what the potential gains are, compared to how much they could lose. Only once they are happy with this ratio do they decide to invest their money.

Decide on a backup plan

However good your decision making, there will times when things go wrong (sometimes badly!). For this reason, it’s vital to always have in place a backup plan when making major decisions. Professional athletes are an excellent example of this. At any time, their career could be prematurely ended through injury. Because of this looming threat, most professional athletes have a backup plan ready to be actioned. This could be a university degree that will allow them to quickly move into a new career, or if they want to stay within athletics, then they may have taken the necessary training to become coaches or psychotherapists (for example).

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Create decision making habits

First-rate decision makers didn’t become that way overnight. Instead, they honed their decision making over months and years. You must do the same. Start by getting into the habit of making decisions promptly, and then sticking to them. If you struggle at first, then begin with small decisions, and then move onto the bigger decisions when you have more confidence to tackle them.

Outstanding achievers have learned how to be great decision makers. Fortunately for you, the secrets to their success have now been revealed to you.

Take this knowledge – and begin immediately applying it in your life. Decide to be successful. And then let all your future decisions lead the way to the top of Achievement Mountain.

Reference

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Craig J Todd

UK Writer who loves to use the power of words to inspire and motivate.

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Last Updated on January 6, 2021

14 Ideas on How to Measure Productivity to Make Progress

14 Ideas on How to Measure Productivity to Make Progress

Everyone has heard the term productivity, and people talk about it in terms of how high it is and how to improve it. But fewer know how to measure productivity, or even what exactly we are talking about when using the term “productivity.”

In its simplest form, the productivity formula looks like this: Output ÷ Input = Productivity.

For example, you have two salespeople each making 10 calls to customers per week. The first one averages 2 sales per week and the second one averages 3 sales per week. By plugging in the numbers we get the following productivity levels for each sales person.

For salesperson one, the output is 2 sales and the input is 10 sales: 2 ÷ 10 = .2 or 20% productivity. For salesperson two, the output is 3 sales and the input is 10 sales: 3 ÷ 10 = .3 or 30% productivity.

Knowing how to measure and interpret productivity is an invaluable asset for any manager or business owner in today’s world. As an example, in the above scenario, salesperson #1 is clearly not doing as well as salesperson #2.

Knowing this information we can now better determine what course of action to take with salesperson #1.

Some possible outcomes might be to require more in-house training for that salesperson, or to have them accompany the more productive salesperson to learn a better technique. It might be that salesperson #1 just isn’t suited for sales and would do a better job in a different position.

How to Measure Productivity With Management Techniques

Knowing how to measure productivity allows you to fine tune your business by minimizing costs and maximizing profits:

1. Identify Long and Short-Term Goals

Having a good understanding of what you (or your company’s) goals are is key to measuring productivity.

For example, if your company’s goal is to maximize market share, you’ll want to measure your team’s productivity by their ability to acquire new customers, not necessarily on actual sales made.

2. Break Down Goals Into Smaller Weekly Objectives

Your long-term goal might be to get 1,000 new customers in a year. That’s going to be 20 new customers per week. If you have 5 people on your team, then each one needs to bring in 4 new customers per week.

Now that you’ve broken it down, you can track each person’s productivity week-by-week just by plugging in the numbers:

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Productivity = number of new customers ÷ number of sales calls made

3. Create a System

Have you ever noticed that whenever you walk into a McDonald’s, the French fry machine is always to your left? 

This is because McDonald’s created a system. They have determined that the most efficient way to set up a kitchen is to always have the French fry machine on the left when you walk in.

You can do the same thing and just adapt it to your business.

Let’s say that you know that your most productive salespeople are making the most sales between the hours of 3 and 7 pm. If the other salespeople are working from 9 am to 4 pm, you can potentially increase productivity through something as simple as adjusting the workday.

Knowing how to measure productivity allows you to set up, monitor, and fine tune systems to maximize output.

4. Evaluate, Evaluate, Evaluate!

We’ve already touched on using these productivity numbers to evaluate and monitor your employees, but don’t forget to evaluate yourself using these same measurements.

If you have set up a system to track and measure employees’ performance, but you’re still not meeting goals, it may be time to look at your management style. After all, your management is a big part of the input side of our equation.

Are you more of a carrot or a stick type of manager? Maybe you can try being more of the opposite type to see if that changes productivity. Are you managing your employees as a group? Perhaps taking a more one-on-one approach would be a better way to utilize each individual’s strengths and weaknesses.

Just remember that you and your management style contribute directly to your employees’ productivity.

5. Use a Ratings Scale

Having clear and concise objectives for individual employees is a crucial part of any attempt to increase workplace productivity. Once you have set the goals or objectives, it’s important that your employees are given regular feedback regarding their progress.

Using a ratings scale is a good way to provide a standardized visual representation of progress. Using a scale of 1-5 or 1-10 is a good way to give clear and concise feedback on an individual basis.

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It’s also a good way to track long-term progress and growth in areas that need improvement.

6. Hire “Mystery Shoppers”

This is especially helpful in retail operations where customer service is critical. A mystery shopper can give feedback based on what a typical customer is likely to experience.

You can hire your own shopper, or there are firms that will provide them for you. No matter which route you choose, it’s important that the mystery shoppers have a standardized checklist for their evaluation.

You can request evaluations for your employees friendliness, how long it took to greet the shopper, employees’ knowledge of the products or services, and just about anything else that’s important to a retail operation.

7. Offer Feedback Forms

Using a feedback form is a great way to get direct input from existing customers. There are just a couple of things to keep in mind when using feedback forms.

First, keep the form short, 2-3 questions max with a space for any additional comments. Asking people to fill out a long form with lots of questions will significantly reduce the amount of information you receive.

Secondly, be aware that customers are much more likely to submit feedback forms when they are unhappy or have a complaint than when they are satisfied.

You can offset this tendency by asking everyone to take the survey at the end of their interaction. This will increase compliance and give you a broader range of customer experiences, which will help as you’re learning how to measure productivity.

8. Track Cost Effectiveness

This is a great metric to have, especially if your employees have some discretion over their budgets. You can track how much each person spends and how they spend it against their productivity.

Again, this one is easy to plug into the equation: Productivity = amount of money brought in ÷ amount of money spent.

Having this information is very useful in forecasting expenses and estimating budgets.

9. Use Self-Evaluations

Asking your staff to do self evaluations can be a win-win for everyone. Studies have shown that when employees feel that they are involved and their input is taken seriously, morale improves. And as we all know, high employee morale translates into higher productivity.

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Using self-evaluations is also a good way to make sure that the employees and employers goals are in alignment.

10. Monitor Time Management

This is the number one killer of productivity in the workplace. Time spent browsing the internet, playing games, checking email, and making personal calls all contribute to lower productivity[1].

Time Management Tips to Improve Productivity

    The trick is to limit these activities without becoming overbearing and affecting morale. Studies have shown that most people will adhere to rules that they feel are fair and applied to everyone equally.

    While ideally, we may think that none of these activities should be done on company time, employees will almost certainly have a different opinion. From a productivity standpoint, it is best to have policies and rules that are seen as fair to both sides as you’re learning how to measure productivity.

    11. Analyze New Customer Acquisition

    We’ve all heard the phrase that “It’s more expensive to get a new customer than it is to keep an existing one.” And while that is very true, in order for your business to keep growing, you will need to continually add new customers.

    Knowing how to measure productivity via new customer acquisition will make sure that your marketing dollars are being spent in the most efficient way possible. This is another metric that’s easy to plug into the formula: Productivity = number of new customers ÷ amount of money spent to acquire those customers.

    For example, if you run any kind of advertising campaign, you can compare results and base your future spending accordingly.

    Let’s say that your total advertising budget is $3,000. You put $2,000 into television ads, $700 into radio ads, and $300 into print ads. When you track the results, you find that your television ad produced 50 new customers, your radio ad produced 15 new customers, and your print ad produced 9 new customers.

    Let’s plug those numbers into our equation. Television produced 50 new customers at a cost of $2,000 (50 ÷ 2000 = .025, or a productivity rate of 2.5%). The radio ads produced 15 new customers and cost $700 (15 ÷ 700 = .022, or a 2.2% productivity rate). Print ads brought in 9 new customers and cost $300 (9 ÷ 300 = .03, or a 3% return on productivity).

    From this analysis, it is clear that you would be getting the biggest bang for your advertising dollar using print ads.

    12. Utilize Peer Feedback

    This is especially useful when people who work in teams or groups. While self-assessments can be very useful, the average person is notoriously bad at assessing their own abilities.

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    Just ask a room full of people how many consider themselves to be an above average driver and you’ll see 70% of the hands go up[2]! Now we clearly know that in reality about 25% of drivers are below average, 25% are above average, and 50% are average.

    Are all these people lying? No, they just don’t have an accurate assessment of their own abilities.

    It’s the same in the workplace. Using peer feedback will often provide a more accurate assessment of a person’s ability than a self-assessment would.

    13. Encourage Innovation and Don’t Penalize Failure

    When it comes to productivity, encouraging employee input and adopting their ideas can be a great way to boost productivity. Just make sure that any changes you adopt translate into higher productivity.

    Let’s say that someone comes to you requesting an entertainment budget so that they can take potential customers golfing or out to dinner. By utilizing simple productivity metrics, you can easily produce a cost benefit analysis and either expand the program to the rest of the sales team, or terminate it completely.

    Either way, you have gained valuable knowledge and boosted morale by including employees in the decision-making process.

    14. Use an External Evaluator

    Using an external evaluator is the pinnacle of objective evaluations. Firms that provide professional evaluations use highly trained personnel that even specialize in specific industries.

    They will design a complete analysis of your business’ productivity level. In their final report, they will offer suggestions and recommendations on how to improve productivity.

    While the benefits of a professional evaluation are many, their costs make them prohibitive for most businesses.

    Final Thoughts

    These are just a few of the things you can do when learning how to measure productivity. Some may work for your particular situation, and some may not.

    The most important thing to remember when deciding how to track productivity is to choose a method consistent with your goals. Once you’ve decided on that, it’s just a matter of continuously monitoring your progress, making minor adjustments, and analyzing the results of those adjustments.

    The business world is changing fast, and having the right tools to track and monitor your productivity can give you the edge over your competition.

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    Featured photo credit: William Iven via unsplash.com

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