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Decision Making Skills

decision making model examples

Decision Making Models

decision making model examples

I’ve found over the course of my career that there are three main types of decision making models or methods that you can use to help you make a decision.

Whilst every person will follow their own process, all of them tend to fall into one of the three following categories:

  • Rational/Logical Decision Making
  • Intuitive Decision Making
  • Predisposed Decision Making

Let’s take a look at what each of those categories mean and then I’ll cover a specific model that you can use.

Types of decision making models

Rational/Logical Decision Making Models

If you follow the rational or logical decision making model you tend to gather facts, thoroughly examine situations, and make logical decisions based on all you know on a given subject.

You’ll do as much research as possible and leave nothing to chance. This is the most recommended method of decision making for those in management positions.

Intuitive Decision Making Models

Intuitive decision making involves not the use of statistics and data but your gut feeling.

While this method isn’t necessarily bad it can lead to disaster as one’s gut, or instinct, should never be the sole factor in the decision making process.

It’s better to use past experiences, insight, and statistics together to make the right choice.

Predisposed Decision Making Models

Probably the most controversial decision making model is the predisposed method.

Here, you will make a snap decision based on your personal preferences and opinions and will work to find data that backs up what you want to do, regardless of whether or not your decision is actually right.

You will tend to ignore important information merely because it doesn’t support your agenda.

It’s important for you to identify what type of decision making model you usually follow. Is the one you’re using most effective? Do you tend to act in a predisposed manner? Figure out where you stand on the decision making grid and then decide if you need to make a change. 

Decision making model example

The Backwards-Decision Model

We make decisions every day. That’s part of our job and life!

And, most of he time, things go right with those decisions. Rarely do we make massive howlers that send the FTSE 100 index crashing through the floor, or find the building around us burn to the ground.

If you need to make large, long-lasting decisions that will have an impact on what you do in the future, it would be good to have some kind of decision making model that assists us and provides a firm foundation for the decision that has to be made.

Let’s take an example.

Let’s assume you have to decide whether to accept a new job somewhere else or stay with your current position.

One way of doing it would be to use something known as the “backwards-decision model”

It’s called this because, naturally, it’s made up of the acronym ‘noisiced’, which is ‘decision’ spelt backwards.

Here’s how it would run if you had to think through this scenario of whether to move jobs:

Needs – why do I need to move?

Objectives – does the job help me achieve my ambitions?

Information – do I have all the info I need what more info do I require?

Strategy – does it fit into my life plans?

Investigate – check out other possibilities

Choose – what steps do I need to take to make the move?

Ego states – how do I feel? – what do I think? – what should I do?

Decide – make the decision

You can see how this acronym can be used in other areas of life where decisions have to be made.

Try it out and see what results you get from it. It may surprise you how a ‘backwards’ model can be so efficient!

Decision making models are good but…

Do you use a model and still doubt yourself?

When you need to figure out a plan of action, do you take days to consider all the options, and can’t ever decide on the spot?

After you painstakingly resolve on a plan of action, do you go back and forth, reconsidering if you have made the right decision?

Here are some tips so you don’t second guess yourself.

Go With Your Gut

The most important lesson about learning to feel comfortable to make decisions is learning to trust yourself.

If you look back at your track record, you will likely realise that you have a good head on your shoulders, and you typically arrive at the right outcomes. Due to this, try to make quick decisions by going with your gut. It is likely that you do this anyway, except that you stall for time by considering all the possible alternatives.

Your subconscious is your ally, and will usually steer toward the correct choice, it is your conscious mind that plays tricks and makes you wonder as to other possibilities.

Stop The “What If?

Most of the time, we fail to commit to one choice because we are curious about the others.

If you consider promoting one employee, you will second guess other likely candidates, and what kind of contributions they would make to the department.

Or, if you have to pick a marketing campaign for a new product, you will mill over a half dozen ideas, and imagine what each one would offer to the company.

However, it’s vital to understand that you can’t live out all the possible scenarios, and can’t have it all, which is why you need to stop asking, “What if?” and commit to one choice.

Accept Possible Failure

Managers have to balance a lot, and their decisions affect their employees and the rest of the company.

This is the reason it is very hard for some leaders to make decisions for fear that a wrong choice can put the company’s welfare in the balance. If you need to decide whether to invest in a risky new idea, you will likely stay up nights making lists of pros and cons, not able to figure out the best solution.

Remember that although you do have a lot of responsibilities on your shoulders, you are only human and may make the wrong choice once in a while. Don’t let that fear stop you from making quick choices, as even a well-thought out resolution cannot work out in your favour.

Some individuals can make decisions easily, while others have a much harder time at it. Think of it as a skill you need to practice.

Give yourself a time frame on making a choice, and stick to it.

Additional Decision Making Resources

Click below for some more tips and techniques on decision making.

importance of making decision quickly
tips for important decision making

 

Making effective decisions is a popular topic in the Management Training programmes that we run. If you’re a leader and want to improve your management skills then please check out our FREE Online Management Course. It covers the essentials of management and leadership and will help you to make better informed decisions.

Thanks again

Sean

Sean
 

Sean McPheat

Managing Director

MTD Training   | Image courtesy of Big Stock Photo

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Businessman pressing yes, no or maybe buzzers

Top 5 Tips When Making A Big Decision

Businessman pressing yes, no or maybe buzzers

Are you a good decision maker?

As humans, we can’t predict the future, and as such, no matter what the odds, we’re always taking a chance when we make a decision.

We can’t know its outcome, so every choice leads to an unknown.

Learn More

Businessman thinking at work

How To Make Decisions That Will Affect Your Team

Businessman thinking at workMaking a decision can be hard enough when it comes to yourself, but double as difficult when it comes to decisions that affect other people.

However, a big part of a manager’s job description is doing just that.

Learn More

Decision Making

5 Reasons Why Decision Making Skills Are So Important In Management

Decision MakingHaving the ability to make a quick, yet good decision is imperative in all life situations.

To be an effective manager, decision making skills are crucial.

Learn More

How Managers Solve Problems

You know the story…you’re right in the middle of something, and then a problem comes out of left-field. How do you react? How you face problems is one of the critical factors that helps determine how successful you will be as a manager.

Many managers panic or resist problems, thinking that by ignoring it or passing it on, somehow it’s solved. Firstly, assume there is an answer out there… it just needs to be found. Worrying about it gets you nowhere; working towards the answer will get you everywhere. I’m not just referring to being positive, but the state of mind you decide to choose will play a big part in the way the problem will be handled.

Now, ask yourself ‘what are the facts?’. Many problems are not as big as they seem at first, once everything is known. Also, facts will help you find a better solution, faster. Knowing this is the next step allows you to think logically about the situation. If you encounter a problem, simply begin asking questions and gather the facts. Sometimes you have dig to get to the real problem! This is where your quality questioning comes in.

As a manager, sometimes you get involved in situations that don’t need too much of your time. You might be able, having summarised exactly what the situation is, to put the problem back to someone else or identify how it can be dealt with in a different way. If you are the best person to deal with it, think of what you, personally can do to deal with it. Brainstorm some ideas. Expand your thinking to identify what alternatives you might have

Consider what research you might do to solve the problem- maybe the internet could help, asking other people, or reading how others have solved the problem might help. Don’t make the mistake of thinking you know it all, and that your first instinct for an answer is necessarily the best. Bounce your ideas off other people, even if you think they know less on the subject. Sometimes the more you know, the more you can overlook the obvious.

Finally, make your decision, and put it into action. Think short-term as well as long. Follow through properly. Allow yourself the time to pick the right solution and set milestones to measure its effectiveness. Monitor those solutions and make sure you have some contingencies, just in case.

By following logical steps, you identify what progress you can make with specific problems and will soon have them under control.

Thanks again

Sean

Sean McPheat

Managing Director

MTD Training   | Image courtesy of Big Stock Photo

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Decision Making Roles

As a manager you are, of course, responsible for making decisions on a number of different levels. You’ve probably already figured out that your interpersonal and information management roles involve making decisions, but you have a number of other responsibilities as well.

You have four main roles as a decision maker within your organisation. They are to act as an entrepreneur, to handle disturbances, to allocate resources, and to negotiate.

As an entrepreneur you are responsibel for finding new ideas that will enhance the way your team works. Once you’ve developed the idea you must implement it and continuously review it to ensure your strategies are sound. You’ll need to know when to make changes should they become necessary.

The handling of disturbances within your team or department are also your responsibility. Disturbances may include anything from broken equipment to scheduling conflicts or two team members not getting along. You need to make decisions that will stop or avoid anything that will decrease your team’s productivity.

When your team or department receives new resources they’ll come to you first. It’s your job to decide who needs those resources and allocate them properly. These may include access to training, funding for new equipment, and evens upplies.

Last, but certainly not least, you are a negotiator. You are responsible for working with suppliers, other management members, and your employees to make agreements that will enhance your performance.

Managers are obviously bestowed with a significant amount of authority and if you find yourself in a new management position you’ll have to be careful not to abuse that position. The more skilled you are at using your decision making skills for good the more productive, efficient, and successful your team will be.

Thanks again,

Sean

Sean McPheat

Managing Director

MTD Training   | Image courtesy of Big Stock Photo

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Decision Making 101: Practice Makes Perfect

I haven’t challenged you with an activity in quite a while so I thought I might do so today.

Every once in a while we are faced with a decision that seems more difficult than it needs to be. In these situations the key to coming up with the best response is to carefully consider all of the facts and then, using your best judgement and sense of personal ethics, make the decision you think is best for the company in the long run.

Here’s your decision for the day:

As the manager of a small restaurant you suddenly find you need to cut costs by eliminating a part-time employee. Your two choices are an elderly woman who works part-time to help raise her daughter’s children or a college student who is nearing his graduation date and needs to work to pay off his living costs (not to mention tuition) while he’s in school. Both are wonderful people but they are the only part-time people to choose from.

Who will you choose to let go? There’s really  no right or wrong answer but you should be confident in your assessments and have a real reason for picking one or the other. Let me know in the comments who you chose!

Thanks again,

Sean

Sean McPheat

Managing Director

MTD Training   | Image courtesy of Big Stock Photo

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Different Types of Business Goals

Goals are goals, true – but when you’re in business it’s important to recognize that there are several different types of goals to keep track of. For the most part therea re three main types of goals:

  1. Goals set at individual levels
  2. Goals set for different areas
  3. Goals set to meet time frame requirements

Goals that we set for individual levels of the organisation refer to a company’s mission statement and operational ideals. They govern the purpose of the organisation and involve setting both strategic goals (usually set by upper management), tactical goals (usually set by middle management), and operational goals (usually set by lower management).

Different areas of an organisation need goals as well. For example, the marketing department and manufacturing plants are definitely going to have a different set of goals. The same applies to finance departments, maintenance, and even support staff.

Time frame goals refer to short-term, intermediate, and long-term goals. You may want your processing plant to complete 1,000,000 widgets in two days (a short-term goal) or you may want to open 25 new stores over the course of 5 years (a long-term goal). Time-oriented goals can apply to any of the levels or areas of an organisation separately – or to everyone as a whole.

It’s important to recognize that you can’t simply set a goal and hold your breath waiting for it to be met. You have to set focused goals and make sure that the people who need to work towards meeting that goal are properly educated and advised. Use your decision making skills to decide who is best suited to complete a given task and then delegate the project. You’ll be pleased with the results you get from a focused group.

Thanks again,

Sean

Sean McPheat

Managing Director

MTD Training   | Image courtesy of Big Stock Photo

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Decision Making 101

Whether you need to diffuse a conflict, start a new project, or rearrange your department, decision making skills are going to prove to be amongst the most valuable management skills you’ll develop. We’ve spoken before about the decision making process itself and took a close look at the steps you must follow, from recognizing a decision must be made to implementing your final choice.

Unfortunately, there are very few cases where everyone you encounter will be happy with every decision you make. The trick is to realize that you can’t avoid a decision, but that making a choice will allow you to regain control of your department or team, whether they like it or not.

Here are a few decision making skills you should work on as you progress:

Understand why you are making a decision. Do you really understand the problem at hand or do you need to obtain more information?

• Identifying your alternatives. Try to find a handful of solutions to your problem so that you can review them and choose which might work best. Human nature is to jump on the first solution we think of, but this isn’t always the most productive course of action.

• Evaluate the consequences. Review each alternative you discovered and determine whether or not implementing those ideas will have a positive or negative impact on your ultimate goals.

• Evaluate the outcome. You aren’t through with a situation just because you’ve made a final decision. Make sure you evaluate the outcome to ensure that the decision you made was the right choice. Don’t hesitate to make changes if you see room for improvement.

As a manager you have responsibility to make decisions that will impact the performance of your entire team or department. Be confident and assertive and your team will support any decision you make!

Thanks again,

Sean

Sean McPheat

Managing Director

MTD Training   | Image courtesy of Big Stock Photo

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Quick: Make a Decision

Let’s start the week off with a quick exercise. Now that you recognize that making a decision is not a simple one-two process, you’ll need to formulate a personal plan for handling the major decisions that will come across your desk from time to time. What would you do in the following situations?

– There was a major fire at one of your company’s international plants. The fire was caused by negligence on the part of a group of employees and there was at least one death along with several injuries. The fire damaged surrounding businesses and the cleanup will likely take at least 6 months. Your manager has asked you to write a press release expressing apologies, sympathy for the families of those who were lost, and well-wishes for those who are injured. He knows the press will begin to question you and has indicated you should tell them that cleanup will take no more than 3-4 weeks! You know this is something the public would like to hear, but that the information is incorrect. How will you handle the situation?

– The troubled economy is having a negative impact on your business and sales are down. You’re going to have to let one of your employees go in order to cut back on costs, but both of the employees in question are struggling to get by. You know that one has a medical condition and needs to pay for extra health care, but you know that the other is a single parent with a young child at home. Which one will you lay off?

These are difficult decisions and both will take bit of thought. Are they programmed or nonprogrammed? Are you making the decision based on your personal beliefs, or are you looking at the whole picture and making an ethical decision?

Good luck!

Thanks again,

Sean

Sean McPheat

Managing Director

MTD Training   | Image courtesy of Big Stock Photo

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The Decision Making Process

We make hundreds of decisions each day. While making a decision may seem like a simple task, there are a number of key factors that you need to consider in order to make sure your final decision results in the outcome you desire. I’ve found, unfortunately, that the decision making process involves much more than a simple coin toss.

The decision making process is simple. You must:

– Recognize that a decision needs to be made.

– Identify all of the various alternatives available.

– Recognize and choose the best answer.

– Implement your decision.

Easier said than done, right?

The decisions you make do not always involve problems. Some decision making situations come as a result of opportunity, where you realize you have the chance to make a change and must determine the best way to take advantage. Perhaps you’ve won the lottery, for example, and must decide how to best invest your money.

I have found that there are two main types of decisions as well. A programmed decision is one that you make on a regular basis – what to have for breakfast, what supplier you’ll use when you need to purchase printer ink, etc. Others are nonprogrammed, meaning they do not come about every day and take more time and effort to consider. Deciding whether or not to fire an inadequate employee or determining how to split an unexpected bonus amongst your team members, for example.

Your strong decision making skills coupled with your now developing communication and delegation skills will enable you to constantly stay in control of your life, team, and workplace.

Do you have an example of a difficult decision and the unique process you had to go through in order to come to an end result? If so, please share. We’d love to hear about it.

Thanks again,

Sean

Sean McPheat

Managing Director

MTD Training   | Image courtesy of Big Stock Photo

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