Insight-based decision-making is logical because information drives awareness, intuition makes time-space limitations irrelevant and compensates knowledge deficiency.
In fact, business leaders or professionals’ ineffective decision-making becomes one of the biggest root causes to fail businesses. There are more factors contributing to a poor quality of decision-making, and there are many pitfalls on the way.
Not identifying a sufficiently wide range of alternatives to consider: A decision is arguably a choice between two or more options. The great majority of these options are circumstantially provided consider and compare the advantages and disadvantages of all options. Every effective decision-making should be made to solve problems large or small. It's important to articulate what and how by setting the "success criteria" of decision-making, enabling consideration of the range of options, and clarifying which solution option is most aligned with the strategic goals of problem-solving. Which solutions represent the best value in terms of achievement of the business outcomes? What are the risks and issues associated with the solution?
There is too often a tendency to take a one-size-fits-all approach to decision-making, which includes a linear and static decision that commits to a singular path. With unprecedented velocity, uncertainty, nonlinearity, and complexity, it is important to identify the bottleneck in decision-making scenarios and choking point. If the decision-making scenario is well designed and executed, you have the highest probability of getting the best outcome in the state of knowledge accessible at the time of decision.
Failing to identify or agree on the correct criteria: Decision-making becomes important and essential when there are multiple criteria, in multi-objective optimization, and the decision changes according to which criteria have priority. The effectiveness of decision making, especially at the strategic level, has to weigh in multiple factors and needs to search for profound business insight. There is fuzziness in the decision because there is fuzziness in conflicting criteria. To improve decision-making consistency and maturity across the organizational hierarchy, identify and agree on the correct criteria. Framing the analysis in terms of the span from worst to the best on each criterion as a decision management practice.
Decision-making is the science only when decision-makers understand the scientific perspective of decision making. Make “SMART” decision techniques to solve the problem by using weights based on moving from the worst to the best in various criteria. It works well even for a combination of rational and emotional criteria. You need a sound process to frame the decision, spec out your options, weigh them appropriately with the right people, and actually make an effective decision.
The commitment from decision-makers is important to achieve decision premium: Good decisions enable effective problem-solving. Poor decision-making causes numerous problems. If a decision fails, often it has to do with insufficient time to think carefully about important decisions. The fact is that decision-making is the professional capability which can be developed. It is the responsibility of each individual to examine themselves and to make sure they are open to true understanding.
In many organizations that get stuck at the lower level of decision cohesiveness, people lack commitment to improving decision effectiveness, either because they couldn’t see the clear cause-effect of the decision-problem-solving process; or they overly adapt to the culture of inertia. In fact, that commitment is difficult if the corporate culture is acrimonious and confrontational. People often run away from accountability because they fear being treated unfairly when being held accountable for results. The decision-maker needs to have the courage to defend his/her decision and explain how the input was (or wasn't) used. The commitment from decision-makers is important to achieve decision premium and improve a culture of high performance.
Insight-based decision-making is logical because information drives awareness, intuition makes time-space limitations irrelevant and compensates knowledge deficiency. The art of decision-making is based on a sound basis, mixing feelings and reflection, inner wisdom and self-regulation, to make sure decisions are being taken neither impulsively nor too late in order to take actions at the right time for responding to changes.
Not identifying a sufficiently wide range of alternatives to consider: A decision is arguably a choice between two or more options. The great majority of these options are circumstantially provided consider and compare the advantages and disadvantages of all options. Every effective decision-making should be made to solve problems large or small. It's important to articulate what and how by setting the "success criteria" of decision-making, enabling consideration of the range of options, and clarifying which solution option is most aligned with the strategic goals of problem-solving. Which solutions represent the best value in terms of achievement of the business outcomes? What are the risks and issues associated with the solution?
There is too often a tendency to take a one-size-fits-all approach to decision-making, which includes a linear and static decision that commits to a singular path. With unprecedented velocity, uncertainty, nonlinearity, and complexity, it is important to identify the bottleneck in decision-making scenarios and choking point. If the decision-making scenario is well designed and executed, you have the highest probability of getting the best outcome in the state of knowledge accessible at the time of decision.
Failing to identify or agree on the correct criteria: Decision-making becomes important and essential when there are multiple criteria, in multi-objective optimization, and the decision changes according to which criteria have priority. The effectiveness of decision making, especially at the strategic level, has to weigh in multiple factors and needs to search for profound business insight. There is fuzziness in the decision because there is fuzziness in conflicting criteria. To improve decision-making consistency and maturity across the organizational hierarchy, identify and agree on the correct criteria. Framing the analysis in terms of the span from worst to the best on each criterion as a decision management practice.
Decision-making is the science only when decision-makers understand the scientific perspective of decision making. Make “SMART” decision techniques to solve the problem by using weights based on moving from the worst to the best in various criteria. It works well even for a combination of rational and emotional criteria. You need a sound process to frame the decision, spec out your options, weigh them appropriately with the right people, and actually make an effective decision.
In many organizations that get stuck at the lower level of decision cohesiveness, people lack commitment to improving decision effectiveness, either because they couldn’t see the clear cause-effect of the decision-problem-solving process; or they overly adapt to the culture of inertia. In fact, that commitment is difficult if the corporate culture is acrimonious and confrontational. People often run away from accountability because they fear being treated unfairly when being held accountable for results. The decision-maker needs to have the courage to defend his/her decision and explain how the input was (or wasn't) used. The commitment from decision-makers is important to achieve decision premium and improve a culture of high performance.
Insight-based decision-making is logical because information drives awareness, intuition makes time-space limitations irrelevant and compensates knowledge deficiency. The art of decision-making is based on a sound basis, mixing feelings and reflection, inner wisdom and self-regulation, to make sure decisions are being taken neither impulsively nor too late in order to take actions at the right time for responding to changes.
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