Decision-making is the process of to change the status from unclear condition or unfixed situation to be clear condition or certainty situation.
Giving approval for something that its policy or rule has already exists is not a decision-making.
There are 5 conditions in which the decision should be taken:

1. There is a deviation from the standard and must choose the work option to be taken to get back to the standard.

2. There are changing the circumstances so that standards must be adjusted or set the new standards, including here is setting out new work methods to achieve the desired standards.

3. Giving approval for something that has no policy yet. This approval may be in kind of policy, rule, or standard.

4. Giving approval for execution in a very urgent condition in which there is no policy, rules, or standard yet.

5. Deciding the direction of future work plans for both the short and long term oriented based on the dynamics of environmental changes that are and will happen.

Decisions relating to conditions # 1 and # 2 are categorized as operational decisions. Decisions relating to conditions # 3 and # 4 are categorized as policy decisions. While decision relating to condition # 5 is categorized as strategic decision.
The main decisions for the above five conditions is always related to the question about what and how. After these two questions have been answered, further decisions must still be taken with regard to who, when, where, how much, and how long questions.

In operational decision-making process, less required a strategic decision-making compentency. But when supported by this competency, the quality and effectiveness of operational decisions will be much better.
In policy decision-making process, competence in strategic decision-making already has a more dominant role. It is due to the policy that already decided will always be a reference for future activities and usually has validity period of at least 1 year from the date of stipulation.
For strategic decision-making process, it is absolutely necessary competence in strategic decision making because this decision will bring big consequences to the future of the company.
Because competence in strategic decision making has a big share of personal and organizational success, then, this competency shall be better if be developed from the beginning.

There are 3 main reasons why strategic decision-making competencies need to be built from the start and owned by every professional.

1. Normally, everyone will always have opportunities for career development. One time this career path will arrive at a position where he has to be involved in strategic decision-making processes, both in the context of policy-making as well as in capacity for execution. Competence in strategic decision-making cannot be built instantly when be promoted to the strategic position.

2. In shifting the business strategy concept, all functions at all levels of the organization can contribute actively to build competitive advantage of the company. Functional leaders at each level of the organization is required to have the ability in strategic decision-making in order to effectively lead their functions in executing the job role mentioned above.

3. Because competency in strategic decision-making cannot be developed instantly, then in the process of candidates selection for be promoted into the strategic level, having capability in strategic decision-making will be an absolute prerequisite that must be met by the elected candidate. So, only those who from the beginning have begun to build their competency in strategic decision-making will have the opportunity to be nominated in the promotion process.