Tweet

Are you a good decision maker?

Written by: Manage Your Business

Article Overview: Decisions, decisions, decisions. It seems like every time we turn around, we have to make more decisions. The question is, "Are you a good decision maker?" If you aren't (or don't think you are), there is no need to worry. Decision-making is a skill that can be learned by anyone. Although some people may find this particular skill easier than others, everyone applies a similar process.

Are you a good decision maker?

Are you a good decision maker?

Decisions, decisions, decisions. It seems like every time we turn around, we have to make more decisions. The question is, "Are you a good decision maker?" If you aren't (or don't think you are), there is no need to worry. Decision-making is a skill that can be learned by anyone. Although some people may find this particular skill easier than others, everyone applies a similar process.

There are two basic kinds of decisions: those that are arrived at using a specific process and those that just happen. Although both kinds of decisions contain opportunities and learning experiences, there are definite advantages to using a specific process to make a decision. The most obvious advantage is the reduced level of stress you will experience.

Wise decisions are made using a definite process. They are based on the values and perceptions of the decision-maker and include carefully-considered alternatives and options along with periodic reassessments of the decision and its effects. Wise decisions may or may not follow societal norms and expectations, but they are right for the decider based on what he/she knows at that point in time about his/her options as well as him/herself.

Ten Steps to Wise Decision-Making

This process can be applied to any situation where you need to make an important decision. If you follow these ten basic steps, you will find yourself making wiser decisions in your professional as well as your personal life.

* Define, as specifically as possible, what the decision is that needs to be made. Is this really your decision or someone else's? Do you really need to make a decision? (If you do not have at least two options, there is no decision to be made.) When does the decision need to be made? Why is this decision important to you? Who will be affected by this decision? What values does this decision involve for you?
* Write down as many alternatives as you can think of. Brainstorm as many different alternatives as you can imagine. Let your imagination run free and try not to censure anything; this is not the time to be judgmental. Just be sure to write everything down.
* Think where you could find more information about possible alternatives. If you only come up with a few alternatives, you may want to get more information. Additional information generally leads to more alternatives. Places where you can look for the information you need include friends, family, clergy, co-workers, state and federal agencies, professional organizations, online services, newspapers, magazines, books, and so on.
* Check out your alternatives. Once you have a list of alternatives, use the same sources of information to find out more about the specifics of each option. You will find that the more information you gather, the more ideas will pop into your head. Be sure to write these down and check them out too.
* Sort through all of your alternatives. Now that you have your list of alternatives, it is time to begin evaluating them to see which one works for you. First, write down the values that would come into play for each alternative. Second, look for the alternatives which would allow you to use the greatest number of your values. Third, cross the alternatives off the list which do not fit into your personal value framework.
* Visualize the outcomes of each alternative. For each remaining alternative on your list, picture what the outcome of that alternative will look like. Here, too, it helps if you write out your impressions.
* Do a reality check. Which of your remaining alternatives are most likely to happen? Cross off those alternatives that most likely will not happen to you.
* Which alternative fits you? Review your remaining alternatives and decide which ones feel most comfortable to you. These are your wise decisions. If you are very happy about a decision, but are not as comfortable with its possible outcome, this is a clue that this is not a wise decision for you. On the other hand, you may dislike an alternative, but be very excited about the possible outcome. This decision would probably not be wise for you either. If you feel you can live with both the alternative as well as the possible outcome, this is the wise decision you should follow.
* Get started! Once you have made your decision, get moving on it. Worrying or second-guessing yourself will only cause grief. You have done your very best for the present; you always have the option of changing your mind in the future. Remember, no decision is set in stone.
* How is it going? Be sure to review your decision at specified points along the road. Are the outcomes what you expected? Are you happy with the outcomes? Do you want to let the decision stand or would you like to make some adjustments? If the decision did not come out the way you planned, go through the complete decision-making process again. In the process, answer the following questions: Did I not have enough information? What values actually came into play? Were they my values or someone else's? Remember, you can always change your mind!


Common Decision-Making Mistakes

As much as we would like to believe that we do not have any prejudices or biases, the fact is that everyone does. The more aware you are of yours, the better off you will be. The main reason everyone has their own way of viewing the world is because our brains simply cannot take in everything, at least not on a conscious level.

Have you ever tried to learn ten new things all at once? If you have, you know that it is very easy to become overwhelmed and end up learning very little at all. That is because of the way the brain works. Our brains screen and categorize information so that we can understand the world around us without being overwhelmed by it. We get into trouble when we fail to realize that many of the perceptions we hold are based on what society (i.e., parents, teachers, the church, all institutions, etc.) teach us, not what we actually know to be true.

Below is a list of the most common decision-making mistakes. By learning about these pitfalls now, you will be able to avoid them in the future.

* Relying too much on expert information. Oftentimes, people have a tendency to place too much emphasis on what experts say. Remember, experts are only human and have their own set of biases and prejudices just like the rest of us. By seeking information from a lot of different sources, you will get much better information than if you focused all of your energy on only one source.
* Overestimating the value of information received from others. People have a tendency to overestimate the value of certain individuals in our society and underestimate the value of others. For instance, experts, authority figures, parents, high status groups, people who seem to have it all together, and people we respect have a way of swaying our opinion based simply on the fact that we believe they know more than we do. When you find yourself doing this, ask yourself: Do they know as much about this problem as I do? Are their values the same as mine? Have they had any personal experiences with a problem like mine? In other words, keep their opinions in perspective.
* Underestimating the value of information received from others. Whether we realize it or not, we also have a tendency to discount information we receive from individuals such as children, low status groups, women (yes, believe it!), the elderly, homemakers, blue-collar workers, artists, etc. This is unfortunate since many times these groups can paint a good picture of the other side of your problem. In other words, these groups may use entirely different values and perceptions in their answers to your questions. The result is a larger perspective of what the issues really are. Just make a note that if you find yourself discounting the information you receive from anyone, make sure you ask yourself why.
* Only hearing what you want to hear or seeing what you want to see. Try this exercise. Ask a friend to look around them and make note of everything that is green. Now, have them close their eyes. Once their eyes are closed, ask them to tell you what around them is red. Almost everyone you ask will not be able to tell you what was red because they were focusing on what was green. Our perceptions work the same way. If we have expectations or biases that we are not aware of, we tend to see what we want to see. Likewise, if someone tries to tell us something we do not want to hear, we simply do not hear them. This is a common mistake that many people make. The key is to be aware of your own prejudices and expectations while at the same time staying open to everything that comes your way.
* Not listening to your feelings or gut reactions. Have you ever made a decision only to have it be followed by a major stomach ache or headache? This is your body talking to you. Our brains are constantly taking in more information than we can consciously process. All of this extra information gets buried in our subconscious. Although we may not be able to retrieve this information, our body stores it for us until it is needed. In moments when we need to make a decision, our bodies provide clues to the answer through feelings or gut reactions. Unfortunately, our society teaches us to ignore these feelings, but by tuning into your intuition, you will find that you will make much better decisions in the long run.

Related Articles
  Are They the “Real” Decision Maker?
  Know the difference between buyers and decision makers
  Getting past the Gate Keeper
  Prospecting Tips
  “Keys to Getting Past The Gate-Keeper In Business”

Article Tags:



Related Forum Posts
Re: Who hates cold calling? - I think it really depends on what you are selling. For example, we sell chiropractic software that they can enter and store their notes on. Since the law is requiring them to go electronic by 2014, we have a pretty good chance of calling someone who needs it. I agree that for other products and services cold calling would probably be a waste of time. I think the key to cold calling is knowing how to get past the gate keeper. If you just keep calling people and have no clue how to get to the decision maker, cold calling is a BIG waste of time. There are some really good books out there that will teach a person how to do that if he/she decides cold calling would be helpful to their business.
Creating an Advisory Board - Yes - Make sure that each person brings a different perspective and a different skill or expertise. It also helps to talk to each board member individually in order to find out what 'extra' abilities and skills they bring to the table. Then you can present and introduce the board together and openly talk about your expectations for the board, and their expectations of you. My board is very big on the fact that I share information as early as possible. I am a fast decision maker but sometimes this gets me into trouble and then I have to spend time fixing or correcting something. My guides help me to collect better information, streamline the decision making criteria and spend less time 'fixing' stuff. Cheers J
Re: BEFORE YOU DO! - [quote="topeyinka":1kith03r]Hi forum, I read a book recently which has really made my days as an entrepreneur. The book was just released to the market and written by Bishop T.D. Jakes with the title: "BEFORE YOU DO". It taught me about decision on everything business, life, finances e.t.c. I found this book so timely and a good read for anyone who want to forge ahead in business and life. If I may ask, how are you deeply taking your decison on every investment, life and others? Every decision you made points to a direction at which your life and business will go.[/quote:1kith03r] Hi topeyinka, Can you give us a brief example of how this book has improved your decision making process in both business and in life? Thanks
Re: Who hates cold calling? - Have to say, cold calling is about 40% of my daily job. So calling up prospects these days is a walk in the park. However, it took me a long time before I was half decent at it. These days I'm quite effective. I tend to stick to the same guidelines. In a way, these guidelines have helped my career in a way. Firstly, I wouldn't dream of picking up the phone unless I knew my product. I'd hate to get caught out on a simple objections. Secondly, when I call up I ask for the decision maker. If they're not available, (in a meeting, out of the office) I will never pitch the person who takes my call. Normally its the secretary. I'll just say 'no problem, when would you recommend be the best time to catch him?' Thirdly, listen - listen- and listen. In the early days I used to talk over the prospect, and end up wondering why they often said no. Anyway, hope it helps. It's a bit of a knack but anyone can get it. There's a newsletter I've belonged to for a long while and they send you all types of stuff on cold calling. Thing is I've forgotten what its called. I'll have to check my emails and let you know.
Panini maker - Thanks Donna - I'm still living in boxes at the office! Unfortunately we had a loose wire and I shocked myself with the panini maker - one of the things to get the contractor to look at tomorrow!


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Tweet

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

Ready for a Fresh Image?

10 Things To Improve Decision Making

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.