Join Mike Figliuolo for an in-depth discussion in this video Defining decision making, part of Decision-Making Strategies.
- It's important to realize that decision making is actually a process, and it's the process of selecting a choice from a range of possible options, with the goal of achieving a very specific objective. Now contrast that with judgment. Judgment is the ability to form an opinion or reach a conclusion based on available information plus prior experience. So as you go to make a decision, there are some important principles to keep in mind.
First, be clear about the objective. You need to understand what your optimizing for or trying to achieve as you make that particular decision. Second, decide who gets to decide and who doesn't. Be clear about who's going to be involved in the decision making process. You need to define who to involve and how to involve them. Some people are going to provide input, other people will provide perspective on implementation, other people will actually make the decision, and having clarity of roles is critical for successful decision making.
Next, you'll need to reduce ambiguity and risk as much as is reasonable before making your decision. The way to do that is to gather information, but realize that gathering information takes time, and as you're taking that time, new sources of uncertainty are going to emerge. Next you'll need to make your choice and make that choice known to the organization. Tell people you've made a decision, what the decision is, and why you made it. And then last, once you've made the decision, you need to evaluate and adjust based on new information.
So the decision making cycle that you should think about following is first, prepare to make the decision, then you actually make the decision, communicate it to people in the organization, execute, which is put the decision into action, and measure and adjust accordingly.
- Choosing a decision-making style
- Involving stakeholders
- Managing ambiguity and outcomes
- Reducing risk
- Communicating and executing decisions
- Measuring the results of decisions