Double The Value Of Your Decisions

Decision making is one of the most important activities a leader engages in and one of the most important skills to teach an organization. Yet, almost 30% of our decisions are “by default” decisions, meaning that we don’t believe there is a decision to be made just an action to be taken. About 33% of our decisions are “yes or no” decisions, should I do this activity or not. About 30% of our decisions are “A / B” decisions, should I do A or should I do B. Only about 6% of our decisions are a thoughtful evaluation of multiple alternatives with a calculation of the expected impact.

One of the simplest performance accelerators we can implement as a leader is the practice of conscious decision making. Many leaders double the value and effectiveness of the decision making capability of their organization by implementing this simple process.

This is a practice every leader should introduce to their team on day one of their leadership!

The Process of Conscious Decision Making

1. Analyze the problem

Write a clear statement of the problem to be solved.Clearly understanding the problem will provide the mind with clarity about what must be accomplished.

2. Evaluate the possible solutions

List five to ten alternative solutions along with the top 3-5 advantages and disadvantages for each solution.Stack rank the top three solutions and document the advantages and disadvantages.

3. Identify the business value

Calculate the cost and value of each solution to help you decide which is the most valuable.This does not need to be a complex or time consuming activity, use simple estimates and keep it to the largest cost and value items.Individuals and team often get bogged down in analysis paralysis during this phase of the lifecycle.Don’t focus on absolute accuracy, if the project is substantial, validation of the cost can be done at a future time, and most decisions can be made by creating high level estimates that take very little time.

4. Identify the cost and resources

Identify any critical resources that will be need and a rough estimate of the cost so any decision making conversation can be quick and effective

6. Build and present the recommendations

Build a simple presentation to communicate the decisions you are recommending.1 page for each alternative including advantages, disadvantages and value.The following information should be included in the presentation.

• A clear definition of the problem

• The possible alternatives including the key decision factors

• The recommended solution and the reasons for the selection

• The next steps that will be taken to implement the decision

Like all best practices, the practice of good decision making only becomes a discipline when we consistently demand that it be followed. “We get what we tolerate” - Leif Babin