I came across this video and it raised an interesting point – are we getting any better at decision making? Now the studies prove that we are not making better decisions, but are we any better at how we approach our decisions? According to this video the anwer is NO! And the reason is not because of the speed and complexity of business – but because we have yet to recognize and accept decision making as a distinct process.
Most of us do not look at decision making as a distinct process, with very distinct pitfalls and very distinct remedies. In its simplest form, the decision process has four steps:
Frame – Solve the right problem, by framing the issue correctly. Most people solve the wrong problem – makes it difficult to find a good solution. Frames are mental constructions that reduce the problem to its core essence. This often requires that you step away from this issue and determine whether what you are focusing on, is what you really need a decision on. Different people see a different reason. At this stage we must determine whether the frame is correct for the decision that needs to be made.
Investigate – Once you have a frame, then look at the quality of the intelligence and data. It then challenges those involved as to whether it confirms or challenges our beliefs.
Negotiate – Decisions often requires tradeoffs, so you need to understand the various parts of the solution, the cost of each part and the benefits gained from it.
Learn – how this decision can benefit you and how you can leverage the most from it.
Good decision making is about balancing the resources and effort on each of these four steps