Making Decisions with Confidence
Before we begin…
This article has much of my personal opinion yet includes the Rational Decision-Making Model used in Management and Leadership studies.
Let’s Talk Leadership…
I’m a firm believer that to avoid making bad decisions there needs to be a sense of self-awareness and discipline. I think we can minimize the chances of making poor decisions and improve our decision-making process if we put our mind to it.
These are some steps I recommend to help you make better decisions.
Gather Information
Take the time to collect relevant information and consider your options. The more informed you are, the better your decision will be.
Evaluate Your Options
Don’t rush. Consider the pros and cons of each option and think about short and long-term consequences.
Trust your Instincts, But Verify
Your gut feeling is valuable, but it’s important to support it with logic and evidence
Avoid Decision Fatigue
Making too many decisions in a short time can wear you out and lead to poor choices. Prioritize your decisions and handle important ones when your mind is fresh.
Learn from Mistakes
Reflect on past decisions, especially the bad ones. Understand what went wrong to avoid repeating the same mistakes.
Seek Advice
Consult with others, especially those who have experience or expertise with that type of decision. Fresh perspectives can illuminate things you haven’t thought of.
Consider the Worst-case Scenario
Think about what can go wrong and how you will handle it. It helps you prepare and may shed light on risks you haven’t considered. I say “plan for the worst, and hope for the best.”
Check for Biases
Be aware of any biases. You don’t want to favor information just because it supports your existing beliefs, this is risky.
Take Your Time
If possible, sleep on it. Leaving the decision alone until tomorrow. You’ll be surprised at the clarity this can provide.
Did you Know…
Your first piece of information acts as an anchor in decision-making?
For example, if you see a product priced at $100, and then see a similar one for $ 50, you’re more likely to perceive the second one as a great deal, even if it’s still overpriced. This bias can influence everything from shopping to salary negotiations and is called the Anchoring Effect.
When faced with too many choices, people often experience decision paralysis?
Yes, they struggle to make any decision at all. This phenomenon, sometimes called the “Paradox of Choice,” shows that having more options isn’t always better. In fact, fewer options can lead to quicker and more satisfying decisions.
Morning decisions are best?
Studies show people make better decisions in the morning. As the day goes on, decision fatigue sets in, leading to poorer choices. This is because our mental energy depletes as we make decisions, so it’s best to tackle important ones early in the day.
Your Brain Makes Quick Judgements?
Research shows that our brain can form an opinion about something in milliseconds! First impressions are incredibly powerful and can shape your decision-making process long before you’ve consciously thought about it. This is why people often say that “gut feelings” are so influential in decisions.
In leadership there is a common and effective decision making model. It serves as a guide because it’s a structured approach to making decisions. It’s known as the Rational Decision-Making Model. Here are the logical steps.
Identify the decision to be made.
Keep in mind that sometimes it’s easier to see the symptoms of a problem, much like the symptoms of a cold. So clearly define the issue and understand what needs to be resolved.
Collect all relevant data and information.
Facts, figures, opinions, and any other information helpful to help you make your decision.
Identify Alternatives
Brainstorm and list all possible options or solutions. At this stage, consider everything you can without judgments. There is no silly alternative here.
Weigh the Evidence
Much like weighing the pros and cons, evaluate each alternative by considering drawbacks and benefits. Think about feasibility, risks, benefits, costs and alignment with your values.
Select among the alternatives
Decide on the best option based on the evaluation. Consider which alternative offers the most benefits with the least risk.
Take action
Implement your decision. Develop a plan of action that details the steps needed to execute the decision.
Review the decision and it’s consequences.
After the decision is put into place, monitor the results. Determine whether it solved the problem or met the goal. Make adjustments if necessary or revisit the decision.
Learn from the process.
Reflect on the decision-making process. What worked? What didn’t? Can something be improved? This helps you refine your decision making skills for future situations.
This model is particularly useful in situations where there is time to decide, it takes some thoughtful analysis. But, it can be adapted for quicker decisions. Just simplify the steps, when limited with time or information.
Ultimately, I agree that “decision-making is both an art and a science.” It’s a blend of intuition, experience, and analysis, guiding us through the difficult decisions in our life. Whether in business, personal life, or everyday situations, the choices we make shape our paths and define our futures.
If you understand the biases that influence you, and you learn from the past, adopting these approaches can improve your ability to make sound decisions with confidence.
Keep in mind—- the key to better decision-making is to balance the courage to act with the wisdom to reflect. Always make sure each choice brings you closer to your goals and values.
Have a good weekend!
—-Dr. Aguilar
