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Decision making

The world turns around decisions. Our decision making skills have to be on par in the changed world after Covid-19.

There are good, bad, unexpected, wild, serious, motivated etc. decisions. They all have an influence, repercussion or consequence for somebody, a company, a community, or a country. It is therefore important that they should be responsible and well thought through.

We know that there is a universe space for improvement with that. It do not matter who we are, our skill development endeavours have to include training on it.

Definitions:

It is the process of making choices by identifying a decision, gathering information, and assessing alternative resolutions. UMass Dartmouth

Tthe process of identifying and choosing alternatives based on the values, preferences and beliefs of the decision-maker. Wikipedia

Best decision making? “Decisions are made by people. People are fallible; at best, their works do not last long. Even the best decision has a high probability of being wrong. Even the most effective one eventually becomes obsolete.” Peter F Drucker

This was a view 53 years ago. What is the view that will be appropriate for 2020’s? Surely, the moment, the level, the amount of people, the cost and the consequences all have to be considered before a decision can be made.

What is the recipe for an excellent process? What information have to be considered, included and collected? Who must be involved? What is a systematic approach? What do the experts say?

Factors influencing decision making

Difficult or challenging decisions demand high consideration. These sort of decisions involve:

1. Uncertainty – Many of the facts may be unknown.

2. Complexity – There can be many, interrelated factors to consider.

3. High-risk consequences – The impact of the decision may be significant.

4. Alternatives – There may be various alternatives, each with its own set of uncertainties and consequences.

5. Interpersonal issues – You need to predict how different people will react. Mind Tools Content Team  

Factors that can negatively impact decision making:

A. Inadequate information. If you do not have sufficient information, decisions can be made without considering all of the facts.

B. Information overload. Too much information than you know how to handle can also prove detrimental to the process.

C. Too many people. Reaching a decision by committee can be difficult, as everyone has their own views and values.

D. Vested interest. If any of the decision makers has an incentive to reach one particular result, a fair process could be compromised.

E. Resistance to change. People are often attached to a business – particularly those in the management team – and for some the prospect of change can be difficult.

F. No attachment. On the other hand, some decisions cannot be made because the decision maker does not mind one way or the other.

Process to make good decisions:

The Lucidchart Content Team has identified the following 7 steps of the process:

1. Identify the decision

To make a decision, you must first identify the problem you need to solve or the question you need to answer.

2. Gather relevant information

Once you have identified your decision, it is time to gather the information relevant to that choice.

3. Identify the alternatives

With relevant information now at your fingertips, identify possible solutions to your problem.

4. Weigh the evidence

Once you have identified multiple alternatives, weigh the evidence for or against said alternatives.

5. Choose among alternatives

Here is the part of the process where you, you know, make the decision.

6. Take action

Once you have made your decision, act on it!

7. Review your decision

After a predetermined amount of time—which you defined in step one of the process—take an honest look back at your decision.

Strategic consideration

Managers of successful businesses do more than simply find a way to make money and sell stuff. Not only do they handle the day-to-day tasks of selling, they also think of the big picture and make decisions that will get the company to where it wants to go. This is called strategic decision making, where decisions are made according to a company’s goals or mission. This type of decision making guides the choices that are made, aligning them with the company objective. Yuanxin (Amy) Yang Alcocer

Political opinion

We will rather refrain from analysing this as there are too many clowns in world politics at the moment! 😊

Conclusion

It is crucial to have the buy in of all the role players when the process takes place. The parties concerned should have an opportunity to contribute to the process. It will motivate everybody to support the final decision. The knowledge and experience of nobody should be underestimated ever.

Quotes

“Waiting hurts. Forgetting hurts. But not knowing which decision to take can sometimes be the most painful…” José N. Harris

“Whenever you see a successful business, someone once made a courageous decision.” Peter F. Drucker

“Sometimes it’s the smallest decisions that can change your life forever.” Keri Russell

“Your life changes the moment you make a new, congruent, and committed decision.” Tony Robbins

“Life presents you with so many decisions. A lot of times, they’re right in front of your face and they’re really difficult, but we must make them.” Brittany Murphy

“I think that there is something beautiful about mortality. It makes our decisions mean more.” Brandon Boyd

“It doesn’t matter which side of the fence you get off on sometimes. What matters most is getting off. You cannot make progress without making decisions.” Jim Rohn

“Decisions are the frequent fabric of our daily design.” Don Yaeger

“The risk of a wrong decision is preferable to the terror of indecision.” Maimonides

“A good decision is based on knowledge and not on numbers.” Plato

“There is no decision that we can make that does not come with some sort of balance or sacrifice.” Simon Sinek