The ‘multiplier effect’: Making decisions that accelerate business operations

A large part – if not the majority – of leading a business involves making decisions. These decisions range in size and complexity, but they remain there just the same, waiting on your attention.

But there are only so many hours in the day – and never enough, it seems, to do everything we need to do. Which means it is essential that we prioritize. But when it comes to decision-making, how do you most effectively – and most impactfully – do so?

Most of us tend to prioritize based on a decision’s importance. Or its simplicity. Or by gut feeling. Making decisions this way, however, does not necessarily help business operations. You may get lucky from time to time – but who wants to leave business up to luck? Instead, we should be thinking about each decision’s “multiplier effect.”

The multiplier effect concerns enabling others by clearing or avoiding blockages in business operations that will slow you down, decrease productivity, and waste time and money. It is about spending your time moving forward with items that are holding others back.

If I can do a task that allows four or five people to move forward, these people can have a similar effect on four or five others (if not more) – and on it goes. It is exponential. When choosing how to spend your time, spend it moving forward on items that are holding other people back.

By prioritizing decisions or tasks that help your employees or teams carry on with their work, you will accelerate your organization’s forward speed.

But the multiplier effect is also about empathy. It is frustrating when you cannot do your job – especially if it is because you are waiting for someone else to make a decision first.

Sometimes, these decisions are simple and easy – answering an email, for instance. Other times, they will be complex or time-consuming – hiring staff, setting budgets, developing strategy, visiting clients.

By using the multiplier effect to guide your decision-making process, you will reduce bottlenecks, increase productivity and efficiency – and better pave the road for future success.

The potential downside of using the multiplier effect as a guide is that work never technically ends. This is not necessarily a bad thing, however, you must be comfortable with always having a task – a never-ending to-do list – no matter where you are.

This is why I always check my emails outside working hours and when on vacation – in case I can complete a task or make a decision that will have a multiplier effect for those still “at work.” Of course, you must strike a balance. My family will not allow me to always be on my phone, multiplier effect or not. Sometimes you just have to enjoy the beach.