Making decisions may seem straightforward, but introducing factors like emotion, mental health, stress, and the weather can significantly complicate the process – we know that all too well in agriculture! Often, multiple decisions become intertwined, increasing the complexity.
Effective decision-making on farms is essential for optimising productivity, sustainability, and profitability. Farmers encounter a range of choices daily, from stock selection and resource management to financial planning and market strategies.
A sound decision is well-informed and grounded in relevant data. It aligns with personal or business values and objectives, reflects careful analysis of alternatives, and incorporates stakeholder input when necessary. Ultimately, it fosters positive results, supports growth, and remains adaptable to changing circumstances or new information.
When guiding clients through significant decisions, I often emphasise the importance of not making life-changing choices while you're in the dip! (see image 1). Tough choices made during challenging times—such as when feeling overwhelmed, working long hours, or facing unexpected obstacles—rarely yield good results.
When I faced a very difficult decision in the past, a wise mentor asked me to consider whether the decision I was leaning toward was a decision or a reaction. This question caused me to differentiate between deliberate choices and impulsive responses.
The five basic steps to making an effective decision for your farm business includes, but not limited to:
Step 1: Identify the Decision
Clearly define the decision at hand. Assess its implications and significance concerning your goals (don’t laugh - this is often the missing factor)!
Step 2: Gather Information
Collect relevant data, opinions, and insights. Weigh the pros and cons of each option to inform your decision.
Step 3: Analyse Alternatives
Compare available options based on the gathered information. Evaluate potential outcomes and risks to make a well-informed choice.
Step 4: Make the Decision
Select the best alternative aligned with your goals. Trust your judgment and commit to the decision, preparing for implementation.
Step 5: Implementation and Review
Execute the chosen strategy and monitor its outcomes. Regularly review the decision-making process and results to learn from successes and failures, allowing for continuous improvement.
Some additional factors to consider when you need to make a decision are:
Data: Data reduces uncertainty in decision-making, boosting the likelihood of favourable outcomes. Benchmarks also serve as valuable reference points, facilitating meaningful discussions and aligning perspectives.
Timeliness: Timely decisions are crucial to avoid missed opportunities and effectively utilise resources. A prompt choice can lead to better outcomes, while delays may result in lost advantages.
Values: Values are pivotal in guiding choices and priorities. They shape judgments and influence behaviours, ensuring alignment with personal and business goals, fostering integrity and consistency.
Behavioural styles: Different behavioural styles impact decision-making. Some individuals are analytical, relying heavily on data, while others are intuitive, trusting their instincts. Understanding these styles enhances collaboration and leads to more effective outcomes.
Beliefs: Beliefs shape perceptions and influence choices, acting as filters for information. They guide individuals toward options that align with their established values and worldviews, ultimately affecting outcomes.
Personal wellbeing: Understanding your own state of mind is essential for making quality decisions. Consider what energy you bring to the decision and whether you have the mental space to make a sound choice.
Engaging with diverse perspectives can lead to more well-rounded decisions, but this dynamic can sometimes result in frustration for couples navigating both personal and business partnerships.
To expand on the "behaviour styles" point mentioned above, it’s common for individuals to attract their opposites. My partner and I are a real example of this difference: I rely on gut feelings and need time to process my thoughts, while he values space but prefers to base decisions on data, facts, and figures (he’s much more black and white than I am).
The contrast in our decision-making styles underscores the importance of understanding and accommodating each other's approaches. By recognising these differences, we can foster a more collaborative environment that enhances our shared goals and objectives.
For major decisions, I offer an additional tip: apply the "3 x 3 treatment". Consult three trusted individuals for their insights and take three days to reflect. This strategy encourages diverse perspectives and ensures a well-considered choice.
Sally Murfet is the Chief Inspiration Officer at Inspire AG (Australia) and is a consultant, facilitator, and speaker specialising in people, teams and culture. Renowned for her ability to connect people with business performance, she is passionate about empowering teams to realise their full potential and collaborate effectively. Sally's expertise encompasses leadership development, team dynamics, and succession planning. She is a Certified Practising member of the Australian Human Resource Institute. Connect with her on social media at @InspireAgAus