Decision-making can involve rational thinking and emotional considerations. Depending if the decision is a big one, or a small one, a different level of effort will need to be applied. We need to understand why we are making the decision, the risks and the outcomes of a decision.
Here are the 10 ways to make a better-decision:
- Determine if the decision a big one or a small one
- Assess the risk associated with the Decision and the likely outcomes
- What are the pros and cons of the decision
- Seek an expert for help with your decision
- Include data to help you make your decision
- Identify the emotional component of your decision and use logic
- Set a deadline for your decision
- Limit your choices for the decision
- Be confident of your decision
- Use your intuition
I will explain this in more details below:
1. Determine if the decision a big one or a small one
Before making any decision its best to determine if the decision is a big decision or a small decision. A big decision can be something that is life changing, it may be something that is irreversible, or have an significant impact on your life. This can be something like buying a house, getting married or moving overseas. A small decision can be something that may impact you in the short-term, and is likely reversible. This can be deciding what to eat for lunch, or what color T-shirt to wear today. Depending on the size of your decision, you should apply the relevant mental energy on it. Something trivial like what to eat for lunch should not take more than a few seconds and the minimum mental energy on it, whereas, deciding on your career may take a lot longer and more mental energy.
2. Assess the risk associated with the decision and the likely outcomes
Decision-making will involve looking at the risk and the likely outcome. When assessing the risk of a decision, we need to determine the likely outcomes. An example is when choosing your next career move, the risk can be choosing the wrong job and the likely outcome can be it will set you career back 2 years. This will potentially cause a reduce ability to earn money.
3. What are the pros and cons of the decision
Weighing the pros and cons of each decision is very important. Using a job opportunity example, John has 2 job offers and he needs to decided on which opportunity to take. Job 1 is something he likes and passionate about. The cons is it will involve a lot of work and the office is far away from your home. The manager is know to be a micro-manager. Job 2 may be something new but not something you are passionate about. The pros is you know the manager and he is very easy going, the job is flexible and pays more. The decision comes down to passion/demanding role versus less passionate/flexible.
4. Seek an expert for help with your decision
When you do not know enough information about anything, its important to do more research or seek an experts advice. For example, if you move to a new town and want to buy a new apartment, you may want to seek an experts advice. This can be a buyers agent (this is not financial advice) or something who is an expert in the local area. Another example, if you are buy a new laptop and not sure about the specifications between the range of laptops in the market, you can do some research online and find some expert sites or speech to your computer nerd cousin for help.
5. Include data to help you make your decision
When deciding on something you may want to put things down on a spreadsheet to work out to determine the best decision. You can use data to help you or use analysis to help. To buy the most energy efficient washing machine, you may want to write down the energy consumption vs the price of your options. This will see whether the energy saved (and cost savings) can justify the additional $300 extra you have to pay for the energy efficient model.
6. Identify the emotional component of your decision and use logic
Leave your emotions behind when making your decision (except for relationship related decisions). When buy a new apartment, look at the size of the apartment, the aspect, the location of the apartment. Do not let the beautiful furniture, the fancy décor and glossy brochure cloud your judgement.
7. Set a deadline for your decision
Do not take too long with your decision-making. Use the timebox method to make a decision. Give yourself a set time to make an decision. This can be a day or a weekend to make up your mind about a new job. This can be a two weeks to make up your mind on whether you are going to relocate overseas or not. The set time will help you go through all your research, data analysis, logic reasoning etc to decide. The worse thing is to be indecisive and not decide on anything at all.
8. Limit your choices for the decision
When you order food from a plane you will tend to make a quick decision. In most cases there are only 2 or 3 choices. If you go to a restaurant with a long menu, it will take you a lot longer. Limiting your choices will make you decision-making easier. Its easier to decide from 2-3 option versus 20 options.
9. Be confident with your decision
Once you’ve made your decision, be confident and feel good about it. You’ve made your decision and there is no going back. Think of it as, its done and dusted and move on. You do not want to think about, what if I didn’t do this and that.
10. Use your institution
If you’ve exhausted all the suggestions above, and cannot make the decision , use you intuition, otherwise know as your “gut feel”.