How to Make Decisions

by Marelisa · View Comments

accomplishing your goalsThe decisions we make shape our lives. If you have to make a choice and you don’t make one, that in itself is a decision.  One of the best things we can do to improve our batting average when it comes to decision making is simply to make more decisions.  Below you will find several methods to pick and choose from to help you make better decisions.

Dale Carnegie – How to Stop Worrying and Start Living

In his classic self-help book, How to Stop Worrying and Start Living, Dale Carnegie proposed that we apply the following sequence when making decisions:

First: Get all the facts. To quote Dean Hawkes of Columbia University, “half the worry in the world is caused by people trying to make decisions before they have sufficient knowledge on which to base a decision.” You need to define the problem, determine the cause of the problem, and come up with a list of all the possible solutions you can think of.

Second. Carefully weigh all of the facts and then come to a decision. Ask yourself: “What is the best solution?”

Third. Once a decision is carefully reached, act! Get busy carrying out your decision–and dismiss all anxiety about the outcome.

Beware of Factors Which Can Distort or Filter Your Perception

Garth Sundem explains in “Geek Logik: 50 Foolproof Equations for Everyday Life” that the power of suggestion can distort our so-called objectivity. “Imagine”, he says, “if I handed you a cup of hot coffee and then asked your opinion about a person whom you had recently met; now suppose I instead handed you a cup of ice-cold soda. Experiments show that your opinion of this person would be different because you have been primed to feel warmth or coldness”.

Other factors which can distort how we analyze the data that will lead to our decisions are the following:

  • Framing: How you present the data is as important as the data itself.
  • Impact bias: Overestimation of possible outcomes.  That is, people seem to think that if the worse scenario occurs it will take longer to recover emotionally than it actually does. Conversely, if a happy event occurs, people overestimate how long they will emotionally benefit from it.
  • Confirmation bias or Selective Perception: Recognizing only data that supports your hypothesis.  Seeing only what you want to see.
  • Rosy retrospection: You forget the bad elements of a past experience, and remember the good. This is “integral to the repeated experience of family Christmas”, says Professor Sundem.
  • Loss aversion: By taking a certain course of action we stand to gain more than we would lose, but our fear of loss pushes us to make a different choice.

Grid Analysis (or MAUT, which stands for Multi-Attribute Utility Theory)

Grid Analysis is a useful technique to use for making a decision. It is particularly useful when you have a number of good alternatives to choose from, and many different factors to consider. The technique works by getting you to list your options as rows on a table, and the factors you need consider as columns. Then follow these steps:

First. Decide on the relative importance of the factors.  The relative importance can be shown as numbers from, say, 0 to 5, where 0 means that the factor is absolutely unimportant in the final decision, and 5 means that it’s very important. For example, the factors that will influence your decision on what car to buy might be the following: cost, environmental friendliness, attractiveness, trunk size, and safety.  You might assign the following scores to each factor in terms of relative importance:

  • Cost: 5 (the cost is very important to you)
  • Environmental Friendliness: 4 (this is also pretty important)
  • Attractiveness: 3 (somewhat important)
  • Trunk size:2 (not very important)
  • Safety: 5 (also very important, as important as cost)

Second. The next step is to work your way down the columns of your table, scoring each option for each of the factors that will contribute to your decision.  Score each option from 0 (poor) to 5 (very good) for each of the factors. For example, if one of your options is a Prius, it might score as follows

  • 3 for the cost (it’s reasonably priced)
  • 5 for environmental friendliness (it’s very energy efficient)
  • 2 for attractiveness (this is not a very attractive car)
  • 3 for trunk size (it’s a decent-sized trunk)
  • 4 for safety (let’s assume it’s a safe car)

Third. Now multiply the relative importance of each of the factors with the score you gave to each of the options for that factor.  So again, for the Prius:

  • Cost: 5 times 3= 15
  • Environmental Friendliness: 4 times 5 = 20
  • Attractiveness: 3 times 2 = 6
  • Trunk size: 2 times 3 = 6
  • Safety: 5 times 4 = 20

The total score for the Prius is 67 (15 + 20 + 6 + 6 + 20).  The option with the highest score is your best option.  Use this grid from Mind Tools to help you get started: free grid analysis worksheet.

Another option is to create a “Decision Tree”. To learn how to create a decision tree, go here.

The Four-Step Natural Brilliance Model

In his book, Natural Brilliance, Paul R. Scheele–founder of “Learning Strategies Corporation”–describes a four step model for making decisions.  The four step model is as follows:

First. Release, that is, drain all stress from your body and mind.  A relaxed body and mind promotes the optimal state for learning: relaxed awareness.  Being stressed and tense makes us narrow our focus and therefore reduces the number of options we can come up with to solve the problem.

Second. Notice; become aware of what is going on around you and within you.  By combining steps one and two, release and notice, you achieve a state of relaxed alertness.  With relaxed alertness you increase the amount of information that you have about the situation and are better able to come up with a rich set of options to choose from.

Third. Respond: take action.  Anything that you do will have an effect, which means that by acting you will have more feedback with which to work.  By acting you will either have more information on what works, or you will have more information on what doesn’t work. In either case, movement will provide you with real and immediate feedback.

Fourth. Witness by pretending to sit across from yourself and take on the perspective of a wise and trusted counselor.  Have a conversation with yourself about the results you got when you acted.  Decide how to best work with the feedback you received from your action so that you can modify your response and act once again.  Continue following these four steps until you reach the desired outcome.

Visualize Your Ideal Outcome

This is an exercise taken from John Harricharan’s book “Power Pause.” It takes three minutes – one minute to think about what you want to happen… one minute to think about how good you’ll feel when it does happen… and one minute to calm yourself down by thinking about what you are already grateful for in your life.  This exercise will help put you in the right frame of mind to make the best decision at any given moment in time.

In addition, once you visualize the ideal outcome you can begin to use reverse engineering: what had to happen just before you reached the ideal outcome?  What happened before that?  And before that?  In this way you can create a trail that will hopefully lead you toward the outcome you visualized.

Six Thinking Hats – Looking at a Decision from Several Points of View

I already mentioned Edward de Bono’s “Six Thinking Hats” in my “30 Ways to be More Creative” post, but it’s worth mentioning here as well.  Basically, it involves looking at a problem from may different perspectives.

White Hat: With this thinking hat, you gather all of the information that you possibly can about your subject matter. Look at the information you have, and see what you can learn from it. Look for gaps in your knowledge, and either try to fill them or take account of them.

Red Hat:Wearing the red hat, you look at the decision using intuition, gut reaction, and emotion. Ask: “What do I feel I should do?”; “What are my emotions telling me to do?”; and “What does my intuition say about this?”

Black Hat: Look at things pessimistically, thinking of everything that could go wrong. Try to see why ideas and approaches might not work. This highlights weaknesses in possible courses of action that need to be addressed. It allows you to eliminate them, alter your approach, or prepare contingency plans in case problems should arise.

Yellow Hat: When wearing the yellow hat you should think positively. It is the optimistic viewpoint that helps you to see all the benefits of the decision and the value in it, and spot the opportunities that arise from it.

Green Hat: The Green Hat stands for creativity. This is where you can develop creative solutions to a problem.

Blue Hat: The Blue Hat stands for process control.

Sometimes the Best Decision is to Wait-and-See

When I was in law school my Constitutional Law professor told us the “Tale of Nasrudin” to illustrate the point that sometimes the best decision is to wait-and-see. Here it is:

Nasrudin was caught in the act and sentenced to die. When hauled before the king, Nasrudin said the following to him: “I am the greatest teacher in your kingdom; so skilled am I that I could even teach your favorite horse to sing, given a year to work on it.”

The king was amused, and said: “Very well then, move into the stable immediately, and if the horse isn’t singing a year from now, you’ll be killed then.”

As he was returning to his cell to pick up his rags and move to the stable his cellmate said to him: “That was stupid. You can’t teach that horse to sing!”

Nasrudin responded: “Not at all. I have a year now that I didn’t have before. And a lot of things can happen in a year. The king might die. The horse might die. I might die. And, who knows? Maybe the horse will sing.”

Conclusion

There are many different models and procedures you can use to make decisions. Pick one, or a combination of them, and move forward with your life by making decisions. To quote Aneurin Bevan, “We know what happens to people who stay in the middle of the road. They get run over.”

How do you make decisions?

(“Her Magic Eight Ball”; courtesy of T v k)

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  • Making decisions can be intimidating and time-consuming.
  • Amy
    Six Thinking Hats is definitely a great decision making tool. It's also a simple way to organize meetings, and is especially useful for innovative thinking (green hat thinking). Reading the book is a great introduction, but you can also attend the official Six Thinking Hats training program or have an entire team at your company go through training. The interactive course teaches you how to use the thinking methods in groups & individually, and also teaches sequencing of the hats in great detail for specific types of thinking (decision making, process improvement, innovation). http://www.debonoconsulting.com/six_thinking_ha...
  • Mare
    @Natural: Isn't that the best story :-) Everyday decisions should be made quickly, especially since there's usually so many of them. I only use the tool box above for large decisions.
  • I love this Marelisa Tale of Nasrudin, excellent. Smart. Ingenious. That’s using the brain. I don’t put too much thought into everyday decisions. If I have a weighty one to make, I give it time, weigh all the factors and say a prayer.
  • Mare
    @Robin: I guess that's kind of like when someone asks you to think and fast and just pick one of the two choices, and then when you pick one you see how you feel. If you feel disappointed you know that the right choice is the other one, and if you feel satisfied you know that's the correct choice.
  • Hi Marelisa

    Now and then I have to make a black and white decision - then what I'd usually do is imagine I choose one way, and see how I feel, and then imagine I choose the other way, and see how I feel about that. It's obvious then which way to go. If it isn't, I guess it really doesn't matter.
  • Mare
    @Irene: I know what you mean, but I think that the faster we make decisions the faster our lives start to move forward. Thank you!

    @Al: Being methodical is very important when reaching decisions that will have a big impact. It's OK to make mistakes, but not when those mistakes were due to impatience. Those project leaders must drive you crazy!
  • Hi Mare,

    This list is a great resource for decision making. I often come across projects where the choice has some complexity, and impatience of the project leaders led to random and impetuous choices. A lot of mistakes could have been avoided with a little more methodical approach.

    Al at 7Ps last blog post..What’s More Important: Who You Are or What You Do?
  • Hi Marelisa,

    Gosh this is such a comprehensive list ... you leave no room for excuses, LOL! My problem with indecision is usually due to over-thinking, which then leads to worry and then I freeze. I'm going to bookmark this post. Thanks, this is excellent!

    Irene | Light Beckonss last blog post..Epiphanies From Freaking Out
  • Mare
    @Sara: You're right that depending on the type of decision you're making you would want to rely more on either logic or emotion. Well, you can bookmark this post and if you're ever faced with a big decision and you're not sure what to do, come back to it :-)
  • I love the idea that there's more than one way to choose. Some decisions work best when the emotion is removed, and others are ideally suited for passion and gut.

    This has got me thinking about how I can try some of these in similar but inocuous ways to see if any "click" more than others. Apparently, I don't make many decisions I struggle with, because I'm stumped at what I'd it on!

    Sara at On Simplicitys last blog post..Fiddle-dee-dee! The Art of Scarlett O’Hara Optimism
  • Mare
    @Ellen: Isn't that a great story? Professor Goldberg was the best! When I worked for the administration of the Panama Canal I was a negotiator, and we used all sorts of models for making decisions when it came time to present our proposals to the unions.
  • Mare,

    Ha! I like the Nasrudin story!

    I am not all that organized when it comes to making decisions as you have outlined. I usually follow my gut. But Tom V states a good point. We are usually conditioned to view yes, no, black, white kind of dualistic answers.

    I think that the psychological hot/cold drink analogy also illustrates this point.

    I agree with your first statement of if you don't make a choice, you still have made a choice...like the song. Now I can't remember who sang it.

    Anyway, we are constantly presented with choices and decisions. It's how we negotiate our lives. Something propels us forward.

    Ellen Wilsons last blog post..My Social Experiment: RSS Numbers
  • Mare
    @Andre: OK, so maybe not deciding is a soft "no" which still holds the potential for turning into a "yes", while saying "no" outright is a hard "no" which is pretty definite :-)

    @Patricia: I do see your point about including the opinion of others whom you trust in your decision making process, and it's a very valid one. Kelly above made a similar point about her husband being a part of her decision-making process. And if there's an expert whom you can turn to for advice, that can certainly be helpful. Thank you for your input.
  • Very well researched and thought out learning post, I do love to learn something new. I am reminded of Japanese Pillow talk problem solving skills with the different hats.
    One area that is almost left out of all these styles is researching by talking to other people. In Sweden I discovered family,friends and experts are a huge part of the decision making progress which provides a great deal of bonding in their community.
    Being independent and autonomous is such a highly important priority in American Culture.
    Thank you for such a great post.
  • If you don’t decide then you made the choice (albeit passively) to remain in the status quo.

    Outwardly, that's true, but the distinction I'm making between an indecision and a negative decision address how the two are experienced internally, which is why I used the term "open loop." Consider the following conversation:

    John: We should get together and have dinner sometime.

    Jane: Yeah, that sounds like a great idea.


    But no follow-up is made on this proposal. The idea was simply "thrown out there" rather than turned into action. Now consider an alternative scenario:

    John: We should get together and have dinner sometime.

    Jane: Well, my husband would get the wrong impression, so I'm going to have to say no.


    In both cases, the outcome appears to be the same -- no dinner. But the first conversation opens an indefinite cycle of expectation, a cognitive dissonance. The second closes the loop immediately.

    Open loops happen on every level, from the baccalaureate considering grad school for 10 years, to the guy who leaves a candy wrapper on his desk for a week because he hasn't explicitly identified it as trash.

    I'm not arguing that being passive is more or less effective than being negative, but the two behaviors have different phenomenological implications.
  • Mare
    @Tom: Generate at least five options before you reach a decision to make sure that you're not "leaving money on the table". I like that Tom.
  • How do I make decisions? By never, ever stopping at less than five viable options. We are too biased towards black and white, yes or no. Often there are multiple options that we don't see in foresight but do see in hindsight. Well they were there all along - so don't decide until you have at least five.

    Now I have more ways to do that. Thanks!
  • Mare
    @Alex: I think it's important to go with what feels right. But you should also take into account that sometimes your gut is biased because of things that have happened to you in the past and the other factors mentioned in the article which can distort reality if you're not careful.

    @VintageMommy: Hi Ann, I guess it's kind of like when they tell lawyers not to represent themselves because they're too emotionally involved in the case. Sometimes it's difficult to see things clearly when you're too close to the problem--as you point out--so the best thing to do is to distance yourself from the problem by pretending that you're giving advice to someone else.

    @Kelly: Yeah, I don't have a spouse but I understand the concept and it's probably not a good idea to completely ignore them :-)

    @Evelyn: For difficult decisions the more perspective you can get on the situation, the better.

    @GleeGirl: It definitely depends on the importance of the decision, and some people are better at making on the spot decisions than others. I've seen some extraordinarily complex models for decision making, but they're used for very large issues (such as deciding whether to run for political office).
  • Gosh...decision making is far more complicated than I realised. Perhaps I haven't faced many difficult decisions in my life! I usually just go with my gut, although it might take me a while to work up the resolve to do what my gut suggests.
  • This is a very well written article on how to make decisions in a systematic way. It can be difficult to make a sound decision when we are highly emotional, confused or want a stake in a result that may not be best for us. Thanks for sharing!

    Evelyn Lims last blog post..An Enchanting Vision From My Angels
  • Mares

    That's sound advice. When it comes to spouses in particular, you can't exactly ignore their opinion, but you also have to have your own sense of integrity. So I think giving family a hat equal in size to my other hats makes sense. It's cooperative but doesn't negate what I feel and think.

    Kelly

    Kelly@SHE-POWERs last blog post..Kickstart Your Brain With 21 TRUE Trivia Tidbits
  • Vintage Mommy
    I like the part about talking to yourself like "a wise and trusted counselor". I'll sometimes attack a problem by pretending someone is asking me for advice about the problem. It seems to provide some distance from the anxiety of making the decision and also dovetails nicely with my favorite I learned from you: Treat Yourself Like Someone You Love.
  • I make emotional decisions. As a very emotional person, I go with what feels right. I often let the issue stew for a while inside then suddenly I'll make a decision and then get to work. To people on the outside it seems like a snap decision but it's actually been a while in the making - it just seems so quick because I start to act immediately after making the decision.

    Alex Fayle | Someday Syndromes last blog post..Trapped in the Day-to-Day: Urban Panther Interview Part 1
  • Mare
    @Kelly: If your family's opinion is important to you then I think that what you can do is add an extra hat to de Bono's analysis which you can call "the family hat". That way, you take their opinion into consideration, but it's just one of the hats: you still go through your own logic (white hat), your own emotions and intuition (red hat), and so on.
  • I like how you say not making a choice is still making a decision. This is so true.

    I usually rely on my gut in decision making, but if I get too stressed then I can't "hear" my intuition for all the noise in my head. I am also too swayed by what people close to me think. If they push me toward something then even though I may not feel it is right for me, I procrastinate and try to explain my choice, rather than just owning it. I'm working on it, but I find it very tough, especially when my husband and I disagree on a course of action.

    Another amazingly informative post, Mare.

    Kelly
  • Mare
    @Shamelle: Ah, that's where the grid comes in, to help you add logic to what your emotions are telling you :-)
  • You have set some great guidelines to follow when making decisions. I jotted some points in my notebook as well.

    The problem for me is that, when we get caught up in the moment of decision making all rationality seems to disappear :-0)

    Shamelle

    Shamelle -TheEnhanceLifes last blog post..Book Review:Who’s Pulling Your Strings? (How to Break the Cycle of Manipulation ...)
  • Mare
    Hi Rita: I think that people develop certain tendencies throughout their lives, but I also think that if you realize that the way in which you're responding to outside stimuli is not in your best interest, you can decide to change your response. Of course, certain people are more flexible than others. Your question made me think of "The Fountainhead" by Ayn Rand.
  • Mare
    Hi MizFit: I try to combine data analysis and rational thinking with going with my gut. That's why I like Edward de Bono's Six Hat technique, it let's you look at a situation from many different angles so that you can come up with the best solution.
  • I am also a fan of the INACTION IS, IN FACT, AN ACTION notion.

    learning that really did change my life for the better.

    me? I go with my gut.
    I didnt used to (bad idea) and still ignore it at times (please to refer to last parens :)) but for the most part Ill analyze a bit and listen to my core.

    M.

    MizFits last blog post..Monday Facetime. Bent Over Row: The Dress Returns.
  • Mare
    @Chris: Here's to the end of indecision! :-)
  • There are times when I really don't want to decide. But I guess if we want to control the outcomes in our lives we have to end out indecision.

    Chriss last blog post..A Friend In Need…, Part 8
  • Mare
    @Andre: If you don't decide then you made the choice (albeit passively) to remain in the status quo. I like your brain dump idea, and any tool that you can use to lay out your options schematically should be very helpful.

    @Candace: I see several commentators have pointed out that they like the visualization tool :-) I like that one too. And you're right that it has many different applications.
  • Visualization is an awesome tool to use. It takes only a few minutes at the most and you can incorporate it into more than decision making but into everyday life and goals you have set.
  • If you have to make a choice and you don’t make one, that in itself is a decision.

    I would call this an open loop rather than a decision. Not making a choice creates a cognitive dissonance that's different than consciously deciding to defer the choice (putting the matter in a tickler file or on a Someday/Maybe list, for instance) or explicitly refuse it. But I totally agree with:

    One of the best things we can do to improve our batting average when it comes to decision making is simply to make more decisions.

    Here's how I generally go about it.

    I get every factor that needs to be evaluated out of my head and into some external system. This can be a checklist, and outline, a mind map or a spreadsheet. I'm partial to mind maps and spreadsheets because they provide a more schematic view of a whole situation than a list or outline. But checklists are more practical for quick brain dumps.

    Then I group related factors and eliminate less relevant items. If there are less relevant items that may have potential importance later, I copy and paste those into a new document, but avoid keeping them in my primary field of attention.

    More often than not, the decision I need to make is self-evident after collecting, filtering and reviewing this inventory of factors. If not, I have a bag of tricks to draw from that would be too cumbersome to write here.
  • Mare
    @Lance: Committing to being more decisive is great :-) I like the power pause too.

    @Stacey: You're absolutely right that gathering too much data can result in analysis paralysis. There's a fine line between gathering sufficient data to make the best decision you possibly can, and gathering so much data that you just become overwhelmed.

    @Karl: It sounds like your gut has a pretty good batting average :-)

    @Cath: I eat the frog when it comes to making decisions. I feel more stress from having unmade decisions dangling over my head than I do from acting quickly and then meeting the consequences if I should make a mistake.

    @Bamboo: There's a lot of interesting data on how certain things distort our perceptions. But once you know that those distortions are there you can begin to watch out for them.
  • Up until this point I have tended to be indecisive which is something I work on, among other things.

    I like this line, "If you have to make a choice and you don’t make one, that in itself is a decision."

    Simple, yet profound. And definitely true.

    The experiment with the soda and coffee was very interesting.

    I'll Delicious this article.

    Bamboo Forests last blog post..The Stain Demon Can and Will Taint Your Life
  • Hi Mare this is brilliant advice - thank you. I have a couple of decisions I'm procrastinating on and I guess what I really fear is the outcome. I'm going to visualize the desired outcome tonight, as you mentioned and hopefully this will persuade me to move ahead.
  • I've never heard of Maud before. I like the concept. Sometimes when we look at a problem straight on we can't decide. This technique could help a person understand his desires for something with a little more depth.

    I usually make a decision by talking to my wife and family then just meditating on it for a day or two if it's a big decision. If it's a small one I just go with my gut. It's about 75% right. That's not too bad of odds.

    Karl Staib - Your Work Happiness Matterss last blog post..6 Things You Should Never Say to Your Boss
  • My biggest roadblock is definitely impact bias. One of the other roadblocks to decision making is collecting too much data or talking to other people. I have a background in market research and by nature I am a data collector. My tendency is to collect too much, when, as you've written, collecting enough to be informed is the way to go - then act, learn, then act again.

    I've been exposed to the 6 thinking hats method - it's very cool to see it in action!

    Stacey Shipmans last blog post..What would you do?
  • Those times when I choose indecision (a decision in itself) - I rely on the decisions others make. More often than not, this means I become reliant upon what someone else has decided. Sometimes, this is ok. Other times, I should be deciding for myself. I commit to being more decisive.

    I like the idea of visualization - this seems to fit well with where I'm at right now.

    Lances last blog post..Sunday Thought For The Day
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