Close this search box.

Top 10 Reasons Why Strategic Decision Making Is Important for Organization

Strategic Decision Making

Every organization has to make decisions throughout the day that will impact the outcome of the organization. Decisions can be simple, like deciding on what to wear to work, or whether to organize a meeting or not. However, strategic decisions that impact the direction of the organization are harder to make and are often the most important.

What Is Strategic Decision Making?

Strategic decision-making is a process of understanding the interaction of decisions and their impact upon the organization to gain an advantage. Wrong decisions taken at the wrong time, may result in catastrophic consequences. In other words, the power of strategic thinking lies in combining the power of the right decision with the right time.

To remain competitive and survive, organizations must make decisions that will maximize short-term results and minimize long-term risks. Strategic decision-making uncovers the future possibilities for a company and those options that can be implemented to achieve success. Strategic and data-driven strategies are gaining trends in the business world.

The process of strategic decision-making combines the five basic steps of the decision-making process with the concepts of opportunity, threat, countervailing factors, and risk. The process of strategic decision-making is the lifeblood of your organization. As a business owner, it’s your responsibility to make decisions that will help your company survive, grow and thrive.

Strategic Decision Making: Reasons and Its Importance

The organization must perform better in the future whether the present is better or worse. It is necessary to make strategic decisions to overcome the obstacles that come in the way of the organization’s progress.

Why Strategic decision-making is the most essential thing for an organization

  • An important step in all organizations. This process facilitates organizational learning to take place, improve performance and organizational outcomes and reduce the probability of strategic failure or competition. It provides business intelligence reports for organizations to study and predict the future trends
  • A skill and it’s important to learn it and practice. Strategic decision-making is an essential skill for today’s leaders. It’s not a skill that should be picked up and used once or twice and then forgotten. Strategic decision-making can provide your organization with a competitive advantage, and it’s important to maintain your strategic decision-making skills and continue to develop them over time.
  • One of the most important activities any organization can carry out. Strategic decisions are decisions that require a high degree of responsibility and focus on long-term objectives. They need a lot of knowledge about many things including the processes, systems, and policies. In addition to that, decisions need to be planned before they are carried out. Power BI visuals is one such tools which is secured and loaded with options for making better and smarter decisions.
  • Also involves the process of implementation. Strategic decision-making is all about making the right decisions at the right time. This is the process of making a decision and then implementing that decision. Decision-making is not about making a decision, and then not acting on it. Implementation is the process of actually doing the work.
  • A key tool to drive business growth. It is the way to find out what is the best way of achieving a business objective and what the risks are. This is why organizations should have a decision-making process that includes a well-defined set of policies and rules which are adhered to by all. You can also use different data analytics tools and data discovery tools for helping you taking better decisions.
Strategic Decision making

Few more reasons why strategic decision making is important

  • Links between deliberate and emergent strategy. The deliberate strategy is a plan that is laid out for the organization. Every organization has a deliberate strategy. The emerging strategy is a response to a situation or a circumstance at hand. Business Intelligence strategy are also used to develop plan of actions for future.
  • About assessing, analyzing organizational data, and resolving all the factors that affect an organization’s performance and survival.
  • Helps organizations to achieve their goals. The success of the organization is attributed to the ability to make good decisions. These decisions are made in order to achieve a certain objective. These are based on the information that is available with respect to the situation. Power BI reports can also helps with gaining new insights into business performances.
  • Helps organizations to be proactive. Translating into action, the strategic decisions you make improve your organization’s efficiency. The way you decide on your future course of action will set the tone for the rest of your organization. How you decide on actions will make you feel good or bad.
  • Key to the success of any organization. Decisions can affect an organization in a myriad of ways, from how much money it brings in to how many employees it has, to the kind of work it does, and how it is viewed by its customers and the community. This is one of the more prominent reasonw why organizations are going for Predictive analytics consulting for smart decision making.

It’s not just individual decision-makers who need to make strategic decisions, but all members of an organization. Organizations within organizations, sub-organizations within corporations, and various teams within a firm. The reason that strategic decision-making is important for an organization is that it helps them to be more efficient. They will be able to make a lot more decisions that save them time and energy.

What Are the Tools That Guided Organizations to Make Strategic Decisions?

Every organization needs to make strategic decisions. These decisions, which are made for an organization’s future, are based on the organization’s vision, mission, and goals that guide the future of the organization. Often times the decisions that are made, which guide the future of the organization, are based on top-down decisions. However, there are times when decisions need to be made from the grassroots, bottom-up, where people are the ones deciding the future of a particular organization.

Who Should Be Involved in The Decision-Making Process?

The truth is that many organizations, especially companies, don’t do much strategic decision-making. They are too busy trying to make decisions themselves, like “if we like this product, we need to get it in the store today” or “if we don’t like the product, we need to keep it out of the store.” But, as you may know, making decisions is not the most important thing in the world especially without proper business reports. Without the right strategic decisions, a company is just a bunch of people doing stuff. A company is a well-defined set of functions that have a clear goal and a set of rules. It is the only entity that has all the power needed to accomplish a specific purpose with a specific set.

So, who should be involved in the decision-making process? Should it be the CEO? The board of directors? The Senior Vice President? The whole executive team? The answer is: it depends on the type of organization you are in and the type of decision you’re making. While you may have a variety of opinions and preferences, the bottom line is that most decisions should be made by all the stakeholders involved.


A company’s ability to make the right decisions is a critical factor that can determine success or failure. Not all decisions are equal, and not all decisions need to be made on the same day, or even in the same week. If you have an idea, you should have a plan, a path, and a timeline in place to execute your idea. It’s important to have a good understanding of which ideas are the most valuable for your organization, and then you can use data to inform your decisions.

You can avail of Power BI for making a well-calculated decision in any situation.

Business Intelligence Consulting

In most organizations, there is a need to make decisions that affect the lives of its members. Organizations must determine the best course of action for the organization in order to meet its objectives. Strategic decisions are decisions that are strategic in nature. Strategic decisions require strategic thinking. Also, Strategic decisions must be made with a clear understanding of the long-term, short-term, and even the immediate future.

Fill In The Below Form For – FREE 30 Mins Power BI Consulting

Errin OConnor

Errin OConnor

With over 25 years of experience in Information Technology and Management Consulting, Errin O’Connor has led hundreds of large-scale enterprise implementations from Business Intelligence, Power BI, Office 365, SharePoint, Exchange, IT Security, Azure and Hybrid Cloud efforts for over 165 Fortune 500 companies.

Let's Get to Work Together!

Talk to our Microsoft Gold Certified Consultants