MAKING DIFFICULT DECISIONS
Part 1: Improving our decision making
Difficult decisions can be double trouble. Making the decision can be very hard and then communicating it could be harder still. In the first of a two part article, top trainer and conference speaker Frank Newberry considers how we can improve our decision making. In part two he will look at ‘Communicating Difficult Decisions’
DECISION making has always fascinated me. No more so than recently when I was doing some research for a client on how boards and committees should make decisions, for example by getting a majority vote or reaching a consensus and so on.
We can decide not to decide
My research uncovered something unexpected. I learned that not making a decision was also a decision i.e. the decision not to decide. We can, for example, decide not to decide right now, or not to decide for the time being. Now, in the past, I would have judged people who do not decide as being ‘indecisive’ people. I now understand that we can decide to be indecisive!
On a more serious note, we could be at the mercy of a board or committee where one or more members are very happy not to decide on an issue that is important to us. Having a strong case or merit in our argument for something we need at work is no earthly use if someone in our decision making body is holding up a decision we need.
Often this approach permits people to say ‘no’ without actually having to justify their refusal. They can get by with statements like ‘I’m not sure’, ‘I need more time’ or ‘I need more data’.
This reluctance is understandable given there is some research that says most people make decisions based on a ‘gut feel’, with less than 10% of them basing their decisions on objective, quantifiable data. Perhaps, if people used a better decision making process they might decide more quickly and still have the courage of their convictions. Let us look at a straightforward but effective process.
Before we start I should disclose that my view on processes and formulas has not altered over the years. I am not always very logical so I need a process that does two things: 1) it must help me to be logical and 2) it must be easy for me to use! Such a process follows:
A Straightforward Decision Making Process
Step 1 - Make a Decision Statement • State the purpose of the decision
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• State what action is required and what results are desired
• Word it carefully and specifically
For example: I want to get a new vehicle that meets my needs and is within my budget. I need the vehicle by the end of May this year.
Step 2 - Set Decision Objectives (Essentials and Desirables)
• Develop a list of criteria (this list could be long - the longer the list the better the decision)
• Review the criteria and make them as specific as possible
• Divide them into ‘essentials’ and ‘desirables’ i.e. I must have the ‘essentials’ but any ‘desirables’ would be nice to have if I can get the right price.
For example: Essentials would include a certain minimum payload, a certain maximum size and proven reliability. Desirables would include greater comforts and an extended warranty thrown in.
Step 3 - Evaluate Alternatives Against Criteria
• Make a list of the alternatives available e.g. new vehicles, used, or refurbish existing
• Check each alternative against 'essentials'
• Eliminate any alternatives that do not satisfy ‘essentials’
• Check each alternative against ‘essentials’ • Make a record of the evaluations
For example: Buying ‘new’ would meet all my ‘essentials’ but could break my budget. Buying ‘used’ would meet all my ‘essentials’ but the warranty is only three months compared to two years on a new vehicle.
Refurbishing existing would be cheapest but may only be postponing the day I have to replace the vehicle.
Step 4 - Assess the Risks
• Consider the likely consequences of executing each of the alternatives
• Think about what might go wrong (for each of them)
• Consider the likely affect of setting precedents etc. on other people, policies and practices
• Check that your assumptions are fair and that your facts are straight
For example: In today’s recession we could have a nice new vehicle for a great price but we might not be able to afford to pay the driver for very long. A used vehicle may only have a three month warranty but we could be out of business by then.
Refurbishing may be our only option. We may only be able to afford to bring an existing vehicle up to standard and then take things steady until the upturn in the economy. You might also assess the risk of doing nothing at all for the next three months.
Step 5 - Make the Decision • Make the best balanced choice
• Communicate your selection and the reasons for it to all who will be affected
• Take responsibility for the decision and offer support, clarification and guidance
• Monitor implementation and make any needed changes and improvements
For example: Show the balance in your decision by providing an analysis of your options i.e. which options meet which criteria. These are often best described in terms that the decision makers' value e.g. cost, quality of results, and visibility of those results. Finally, you could cost out the ‘no change’ option in terms of cost, quality etc.
In closing let me say that making your assumptions known to others will show some confidence and should help the right decision to be made.
Good luck with your difficult decisions. Next time we will look at ‘Communicating Difficult Decisions’.
Frank may be contacted on
info@franknewberry.com or via Pitchcare
mail@pitchcare.com
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