In business, the smart model of decision-making is an important concept for drawing conclusions. You might have heard about this model in which the “S” stands for specific or significant information, the “M” is for measurable or meaningful data, the “A” is for agreed-upon or actionable intelligence, as well as achievable standards, the “R” is for relevant information, as well as realistic goals, and the “T” is for time, as in the amount of time needed to make decisions and reach goals. But how could you use this concept in your business to grow even faster? In this article, I’ll show you how you can apply the SMART method in the form of 5 keys to making smart business decisions.
The 3 Steps to Making Smart Business Decisions
As stated in the SMART model, your data should be specific, meaningful, actionable, relevant, and time-based. Therefore, you must pay close attention to the data you collect from your audience. There are various channels businesses use to collect their audiences’ data. It could be done through forms and surveys, or behavior tracking tools like Google Analytics. You must identify these channels and optimize them to collect the right data from your audience. Follow the following steps to make effective decisions in your business.
1. Rely on Good Data
Clearly, the most important element of making any well-informed business decision is good data. Good data is defined in the SMART model. It’s the data that is specific, meaningful, actionable, relevant, and time-based. As mentioned above, you must define the right channels to collect good data.
Having good data, you can say your business decisions are based on evidence. Also, good data shows you where the uncertainties are and what actions you can take to take the least inconveniences in the future. In addition, good data shows you future risks and how you can prevent or leverage them.
Good data is mostly achieved through effective forms and surveys. First, identify the types of data you want to collect. Then build forms and channels to collect that data. Finally, use an effective tool to analyze your collected data.
2. Specify Clear Objectives
Your objectives must be the north star that guides you through your business journey. Consider what your objective means and how you can accomplish it. Make sure everyone in your company is well aware of these objectives.
Be specific and determine how you’re going to measure success. This way, you can set clear objectives to guide you. Next, you need to consider actions you can take to reach those objectives. From there, you’ll have to collect relevant information through testing, surveys, and metrics to see if your efforts are bringing the desired results. Finally, you should set a time frame for actions, data collection, and review.
3. Make the Optimal Decision
To make the optimal decision, first you need to completely understand the problem. Your goal should be to solve the problem not just eliminate its temporary symptoms. Therefore, work hard to fully understand it. Then, having your objectives in mind, weight each criteria and decide how important each of them is when confronting this problem.
Identify possible actions. Don’t spend too much time on researching alternative actions. Some decision makers often spend an inappropriate amount of search time seeking alternatives, thus creating a barrier to effective decision making. An optimal search continues only until the cost of the search outweighs the value of added information.
To finalize your smart decision making process, rate each possible action and decide which is right for your business. This process must be a balance of fast and effective.
Now that you know the steps to make smart business decisions, it’s time to choose the right tools. Formaloo offers a variety of perfect tools to businesses to collect good data, analyze it, and recommend the most effective actionable decisions.
You can now start using Formaloo for free to collect good data and analyze it. Get started by signing up here.