For many of us, about the only time we're not planning, hoping for or looking forward to our next holiday is when we're on the current one. The rest of the time, thoughts easily drift to that next trip away to the sun or the snow, to the beach or the city or the hills or the jungle. But whatever kind of holiday we like to go on, the choices are always immense: different countries, different resorts or cities, different hotels or houses, different ways of getting there. The decisions are invariably numerous (and, indeed, picking out a favourite can sometimes be part of the fun).

So, how do you pick out the right holiday? It's probably not by sticking a pin in the page and hoping for the best. There are lots of things to consider, the cost, the location, the accommodation, and the conclusion is a result of assessing different aspects of the available options. It might not seem like it, but when we're making that final choice, we're taking a systematic approach to decision-making, we're forming a strategy that gives us the best results for our circumstances.

A systematic approach can be critical in business, and for rather weightier issues than merely choosing a holiday. But there's a still a common principle: identifying a method for decision-making that we can rely on to produce the best answers. Often, a strategic decision will have to be made to help the company overcome a significant problem or obstacle that, if left unaddressed, could seriously weaken or even bring down the business; it's essential that no unnecessary risks are taken in ascertaining the best route forward.

The decision-making cycle

Alex has been running a hardware store on the high street of his home town for many years. When the internet took off, his company followed, and the online version of his store has proved to be a considerable and consistent success. However, custom at his high street shop has been in decline recently, and it's a problem that he needs to address if the company is to continue to prosper. Is there an aspect of the shop where he isn't providing what customers want or need? A pricing issue, perhaps? Is he perhaps not doing enough to keep shoppers coming through his door, rather than the doors of the DIY chain in the out-of-town retail park? A systematic approach to solving this problem requires Alex to work through a number of stages carefully and thoroughly, in order to be sure of reaching the right outcome.

Recognition: the first stage of the decision-making cycle is recognising the problem. It's not always easy to see, and harder still to accept, that there is a fundamental and harmful problem. Fortunately, this is an easy step for Alex - as he can see with his own eyes that fewer people are visiting his shop and spending money on his products.

Information and intelligence: why has the problem arisen? Before Alex can put things right, he needs to know why things have gone wrong. A good start is simply asking people what they like, what they dislike, and what might be more attractive about a rival or less attractive about his own shop. He'll also need to investigate the competition, visiting the retail park DIY centres, considering such matters as pricing, range, and the customer experience - and to investigate his own shop on those same issues.

Alternatives: once he identifies the root of the problem, Alex needs to define what he can do about it. It might be that he needs a change to how he promotes his company. Perhaps he needs to improve the customer experience. He might need to look at reducing prices if he's able to, or maybe focus on a smaller range of core lines. And although he won't want to consider it, he has to look at the possibility of closing the high street shop - after all, it is struggling whilst the online business flourishes. As much as he wants to keep the shop that he's run for so many years, he needs to at least assess closure as a possibility.

Choice and implementation: ultimately, it's not enough for Alex to consider the situation, he needs to commit to a decision. However, the research and analysis he's done, both of the causes of the problem and the possible solutions, gives him the confidence to be sure that he's choosing a path which will allow the business to flourish. He must be prepared to follow the path to its conclusion, so as to avoid creating any new problems for the future.

Feedback: a systematic approach to strategic decision-making will give Alex every chance of finding a solution that offers the brightest future for his company. Yet it would be foolish to assume that the solution is inherently perfect; Alex needs to monitor the impact of his decision to assess what has worked and what hasn't. Where concerns still exist, or future improvements are able to be made, it's important that he recognise these issues in order to address them - which returns us to the beginning of the cycle.

Making a long-term decision that will have an impact throughout the business, perhaps on the company's very future, can seem daunting. But if the need for such a decision exists, then it must surely be clear that the choice must be taken. There's never a guarantee of success, but by systematically following the decision-making cycle - multiple times, if need be - the likelihood of adopting the most beneficial course of action is increased markedly. It's worth considering a short training course to develop your decision-making skills; after all, if you don't address the problems that arise, sooner or later they'll consume your business. A systematic approach to strategic decision-making could help turn Alex's company around, and it can do just as much good for yours too.