smart decisions ebook 2.3.10
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Making Smarter Decisions
Thoughts on making difficultdecisions more confidently
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©2010 DQI, LLC This ebook is protected under theCreative Commons license. No commercial use, no
changes. Feel free to share it, post it, print it, or copy
it.
This ebook is available for free by visitingwww.decision-quality.com.
Thanks for reading.
Kevin Hoffberg
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Decisions don’t occur in nature. You don’t
find them under rocks or lurking behind
trees.
Making decisions is a profoundly human
activity. Making difficult decisions is a
profoundly adult activity.
This guide was created to help you better
understand how to do that.
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To make a decision means you will spendyour time, money, and attention toget something you want
A decision is more than an intention,
though intentions are often assumed to bedecisions. The distinction is important.
For example, you could decide you want togo to the movies tonight. But is that reallya decision? Not until you go to the theater,buy the ticket, go inside and sit down. Upuntil you have made the commitment of
your time and money, it is just anintention. You may believe fervently thatyou are going to go see the latest actionmovie, but it is not a decision until you go.
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Some decisions are easy . . . Usually
because . . .
You’ve made a similar decision before.
It’s easy to figure out what you really want.
You have “good” choices.
The trade-offs are easy to make.
The “consequences” of making a bad choiceseem low.
You’ll know quickly if you made a badchoice and will have time to fix it.
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For example . . .
What movie should we go see?
What cell phone to buy?
Should we have chicken tonight?
Should we go swimming or hiking?
Skippy or Jiff?
What’s the best place to go to
see the sunset?
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Other decisions are difficult . . . Usuallybecause . . .
You’ve never made a decision like thisbefore.
It’s difficult to figure out what you reallywant.
None of the choices seem attractive . . . Ormaybe you don’t even know what thechoices are.
The “consequences” of making a bad choice
seem very high.
You won’t know right away if you made abad choice and if you do, you won’t havetime to fix it.
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For example . . .
Should I change careers?
Should I quit my job to take care of my parents?
Should we put my mother in a nursing home?
How should we respond to pending regulation?
How do we fix a fractured business relationship?
Should I go back to school?
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Here are the steps for working through adifficult decision
Frame: Figure out the question you really want to answer.
People: Find people you judge to be credible and ask
them to help.
Process: Do the right kind of work. No more, no less.
Values: Figure out what you really want as a result of making this decision.
Choices: Identify at least three different, interestingalternatives.
Information: Gather information that helps you
understand the differences between the alternatives.
Evaluate: Score each choice against what you want. Make
trade-offs between your preferences to find the best
choice for you.
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Frame
Figure out the question you really want to
answer.
We also think of this as “putting a frame” aroundthe problem: Your frame is the problem oropportunity you choose to work.
A high quality frame is one that is appropriate toyour situation. Appropriateness is a judgmentcall that is best made when you are able tochoose from several different frames.
The most important aspect of defining your problem is to simply make time to do itconsciously.
The second more important aspect is to try outdifferent frames . . . Look at the problem frommany different angle.
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Involve the Right People
Find people you judge to be credible and askthem to help.
If the decision involves only you, this step isabout finding people with knowledge and insightsthat will help throughout the decision. It couldbe these people help you see the problemdifferently. It could be they have insight intowhat you really want. It could be that they knowabout choices you don’t.
If the decision involves others, then these peopleneed to be included in some way: through their
votes, listening to their voices, and perhapsshowing them what you’re thinking.
In any case, make an effort to also seek outdiffering points of view.
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Define the Right Process
Do the right kind of work. No more, no less.
There is no “right” process to make a decision.
The right process is the one that has you doing
what is “necessary” and “sufficient” to arrive ata decision you can make confidently.
The only rule is that the mechanics of how you
will work the decision to conclusion will need tobe appropriate to the size, significance, and complexity of the decision.
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Figure out what you want: Values
Figure out what you really want as a result of making this decision.
Values, preferences, wants . . . They’re all thesame thing. They’re how you tell the differenceamong alternatives. They are your criteria. Theyare why you’re making this decision in the firstplace.
For each decision, particularly those involvingothers, you need to be sure that “wants” aredescribed clearly and distinctly . If those otherpeople have a stake in the outcome of the
decision, you may need to account for theirwants as well.
A good measure of a preference is that you can put a number to it. That’s not always the case,but it’s worth trying. Ask yourself, how youwould know if you got what you wanted.
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Develop a complete set of choices
Identify at least three different, interesting
alternatives.
You do not have a decision unless you have
alternatives from which to choose.
We think you should have at least three
alternatives—and sometimes many more than
that—that are different from each other, are
doable, are interesting in some way, address the
situation, and that collectively seem to represent
the full range of choices.
This is a good place to involve others.
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Gather information
Gather information that helps you understand the differences between the alternatives.
The only information you need is that whichhelps you understand the differences amongst
the alternatives you are considering. Sometimes,that information is easily found. Sometimes it isnot.
Information that is hard or impossible to find iscalled an “uncertainty.” It is important torecognize and consider uncertainty when youdecide.
Ask yourself, “What do I need to know in order to make this decision?”
Ask yourself, “What are the ‘risks’ I see; how doI feel about them; Is there anything I can do tolearn more about those uncertainties?”
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Decision making is both art and science. As
a science, it is supportable by frameworks,
methods, tools, models, and math when
you need it.
As an art, it rests on principles. Reasonablepeople can disagree on principles, but
these are the ones that our research says
leads to high quality decisions.
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Now or never!
Good decision makers actively search outand find the decision opportunities that can
make their lives better.
They do not live their life on autopilot, onlychanging their routines to solve the
occasional problem.
They take responsibility for making their
organization better. They take control of their destiny.
Don’t wait for a decision to be forced onyou!
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Focus on what you can control and on
what matters
Not everything that happens, matters. Noteverything that matters can be controlled—
the essence of where decisions live. Notevery decision is worth working on.
Be proactive, but more importantly, be
thoughtful about where you spend yourdecision making energy. Focus on the few
decisions that set the stage well for what
follows.
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Divide and conquer
This means breaking decisions down intocomponent parts; understanding,
critiquing, and improving each component;
and then building the decision back up intoa coherent, compelling recommendation.
Be thoughtful. Don’t jump at the firstchoice. If the decision seems hard, use a
process. And do one thing at a time!
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Seek out different points of view
There is nothing like a little outsideperspective to help you see the problem
differently, see different choices, and to
get some clarity on what it is you reallywant.
Don’t stop with people who you know willagree with you. Find people who don’t.
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Be tough on the problem and respectful
of the people
Decision making breaks down whenrelationships get tangled up with the
problem.
Fear of damaging a relationship preventsimportant issues from being discussed,
often creating a lose/lose situation for allparties.
Smart decision making creates a space tohave difficult conversations without risking
relationships. Have those conversationsearly in the decision process before people
become too “set”.
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Make and keep high quality commitments
Actions speak louder than words. Yourfollow-through on decisions establishes your
credibility as a decision maker.
Do what you say you are going to do.
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Adhere to high ethical standards
Ethics, trust, and credibility go hand inhand.
You can work the mechanics of a decision
like a pro, and if you do not act and chooseethically, you will ultimately erode if not
destroy the trust of the people involved inmaking and enacting your decisions.
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So now what?
We’re always posting more content on the art and
science of decision making at
www.decision-quality.com, so check there often if
you’re interested in the topic.
We blog about decision making at
www.decision-quality.com/blog. Stop in and have a
look.