As an entrepreneur, you know that making the right decisions is critical to the success of your business. But have you ever considered how your decision-making style could impact the success of your business partnership? Failure to do so can lead to the failure of the partnership and the business.
Following are 4 main decision-making styles and chances are, you and your (potential) business partner will have a different style. Therefore, it’s critical you’re aware of this difference prior to making important business decisions.
Autocratic: This style is characterized by one person making all the decisions. While this may work in some situations, it can lead to resentment and frustration from the other partner.
Democratic: This style involves both partners having an equal say in the decision-making process. This can be beneficial as it ensures both parties feel heard and valued. However, it can also lead to indecision, a lack of direction and failure to act.
Consensus: This style requires both partners to come to an agreement before a decision is made. This can be effective as it ensures both parties are on the same page. However, it can also be time-consuming and lead to compromise that may not be in the best interest of the business.
Delegative: This style involves one partner delegating decision-making responsibilities to the other partner. While this can be effective, it requires a high level of trust between partners.
So, which style is best for your business partnership? The answer is it depends. The key is to find a style that works for both partners and the business. This may require compromise and flexibility.
Following are four tips for finding the right decision-making style for your business partnership:
Be cognizant of your decision-making style – and communicate openly and honestly about your decision-making preferences.
Identify the strengths and weaknesses of each style and discuss how they apply to your relationship and your business.
Consider the goals and values of the business when making decisions.
Be willing to compromise and adjust your decision-making style as needed.
Remember, your decision-making style can often be just as important to the success of your business partnership as the decision itself. By understanding your own decision-making style and that of your partner, you will set your partnership up for success.
Dr. Patty Ann
