Introduction
Effective decision-making relies on specific principles for successful outcomes, including the ability to forecast consequences, rationality, and alternative options. Sometimes, decision-making can be delayed due to logical issues and the inability to maximize the value of an enterprise (Kaufmann et al., 2019). However, delaying processes significantly affects productivity and profitability in business, considering that it leads to lost opportunities, cost overruns, missed deadlines, reduced quality, and loss of motivation.
Discussion
Delaying decisions can lead to missed opportunities, including losing out on a job opening, an excellent deal for investment, or a chance to invest in tap into a new market. The opportunity may no longer exist if decisions are put off for too long (Kaufmann et al., 2019). The case of Google’s delayed decision to acquire sportily is relatable, considering that the leader was afraid of the unprecedented market shift. Google lost the opportunity to acquire Shopify in 2017, and the e-commerce organization tripled in value leading to a significant loss for Google (Agnihotri & Bhattacharya, 2022). This factor indicates that when decisions are postponed, they can result in lost opportunities.
Delaying decisions can cause costs to spiral out of control, considering that costs associated with the project can increase due to inflation, changes in materials or labor costs, or other reasons. This price fluctuation can lead to higher project costs or budget overruns (Osman & Mohamud, 2022). Additionally, taking a long to decide on matters can lead to missed deadlines. This can cause a project to be delayed, which can lead to decreased customer satisfaction and lost revenue (Osman & Mohamud, 2022). An example is the delayed launching of a product so that other competitors go first, which sometimes results in oversaturation of the same products leading to low purchases.
Delaying decisions can lead to poor quality, considering there is less time to ensure quality standards are met. Such situations contribute to poor-quality products or services, leading to customer dissatisfaction and potential legal issues (Bordley et al., 2019). For instance, counterfeit products or replicating products already in the market occur due to prolonged decision-making, considering that by the time products are developed or when the specific approval is made, the essence of the entire project diminishes.
Delaying decisions can lead to a loss of motivation, considering that people can become frustrated and unmotivated when processes become too complex and ambiguous. Delaying decisions until sometime in the future can lead to increased uncertainty (Hallo et al., 2020). When decisions are delayed, they can become more complex due to changing circumstances or new information becoming available (Kozioł-Nadolna & Beyer, 2021). This delay makes it difficult to make an informed decision and can lead to confusion and uncertainty (Lubis et al., 2020). Such behaviors can lead to decreased productivity, reduced service quality, and causing company losses.
Conclusion
Delaying decisions until sometime in the future can be risky and lead to various adverse outcomes. This can be especially true when the decision involves long-term, costly, or high-stakes decisions. Some risk factors associated with delayed approval of processes include opportunity Cost, whereby the company loses a chance to expand and improve its market shares. Cost overruns are another issue that involves a change in market value and hicking of raw materials, which can increase operational costs. Delays in decision-making result in missed deadlines which can be detrimental, especially for investors. When decisions are delayed, employees are demotivated, resulting in distraction which could tamper with the quality of products and services.
References
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Hallo, L., Nguyen, T., Gorod, A., & Tran, P. (2020). Effectiveness of leadership decision-making in complex systems. Systems, 8(1), 5. Web.
Kaufmann, W., Taggart, G., & Bozeman, B. (2019). Administrative delay, red tape, and organizational performance. Public Performance & Management Review, 42(3), 529-553. Web.
Kozioł-Nadolna, K., & Beyer, K. (2021). Determinants of the decision-making process in organizations. Procedia Computer Science, 192, 2375-2384. Web.
Lubis, F. M., Asmawi, M., & Tunas, B. (2020). Motivation vs. Demotivation of Employees Work: An Empirical Study Post Organizational Changes. Web.
Osman, L. A., & Mohamud, A. O. (2022). The Impact of Time Delay on Construction Projects Cost Overrun: A Case Study on Some Construction Projects in Mogadishu-Somalia. Journal of Positive School Psychology, 3884-3895. Web.