Leadership Involves Understanding the Logic behind Decisions That One Makes

You are leading a team meeting, and as you look into the eyes of your subordinates, a thought suddenly occurs to you: These individuals are quickly formulating opinions about whether you are a true leader or whether you are simply their “manager.” The two terms are quite different, particularly when the need to make a decision is at the center of the complex discussion.

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Many people who are in supervisory roles quickly discover the need to make important decisions effectively, but they often neglect the need to pay attention to the logic behind these decisions, according to Emile Haddad, a business consultant and coach. Understanding the purpose behind a decision that you plan to make will increase the chances that the decision will have a positive outcome

Knowing that you have to achieve a goal at your organization indeed is the first step toward experiencing success. Figuring out what you have to do in order to attain this goal is the next step toward success; however, many managers stop at this step. The third step that is critical in any decision-making process is pinpointing exactly why the decision has to be made in the first place. Knowing the purpose of the planned action as well as the expected outcome will enable you to determine whether the decision truly is the best option.

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People often explore the purposes of their decisions subconsciously, but they usually fail to discuss this openly, which allows for greater analysis of the decisions. Important decisions that may benefit from open discussion range from introducing a new product line at one’s company to merging with another company with the goal of maximizing one’s future profitability. When more people examine all sides of a potential decision and agree that it offers the best method for solving a problem, the chances are higher that the decision will have positive long-term consequences.

How sense of purpose drives businesses to success

Sense of purpose is the quality of having a definite goal for existence. In business, it encompasses the visions and missions of the company. It is also the clincher behind every decision.

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It is also thought to be the secret ingredient of successful businesses, like Virgin America, Walmart, and BMW. By sticking to their goals and principles, these companies have weathered the recession and have maintained a prestigious brand image throughout the years. An example of how sense of purpose works was when Porter Gale, former vice president of Marketing of Virgin America, turned down a lucrative offer by a company that manufactures juicy prunes. The deal was actually simple: the airline would get advertising revenue for sampling prunes on their flight. But Gale and her team refused the trade for the simple reason that the prunes didn't fit the vision of Virgin America's brand.

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Roberta Matuson writes on Forbes that a company's sense of purpose can be determined by one simple question: what difference is it trying to make in the world? Once the answer has been identified, it should be made known to everyone. By weaving it into the company's internal and external communication, it will become the core of the business' established branding and values. It will also serve as basis for hiring employees. Most importantly, it will provide a cautionary measure against activities that don't add value to the company. With a sense of purpose in the organization, everyone has a mission and everything works toward a common set of goals.  

Emile Haddad of Seattle is a business coach who helps various businesses build a culture of excellence in the workplace. Follow this Twitter page for more tips on business management.