Six steps to better decision making
Everyone has, at one time or another, found that they’ve made a rash decision they lived to regret. While some of these decisions may be of a minor nature, they might just as easily be major, with major consequences. You might feel the repercussions immediately, or they might come back to bite you somewhere down the road. Let’s take a look at a formula for better decision making that can save you time, money and those inevitable consequences of the rash decision.
1.Being objective is a primary goal. For example, let’s say you’re buying a car. You find one that seems to be exactly what you want. It’s a beautiful, sporty model in just the color you desire. The seller presents maintenance records and you decide to take it on the spot, without a mechanical inspection. This is an impulsive purchase, based on your desire to have the car. What do you do when the car’s transmission falls out a week later?
2.This brings us to our second point of better decision making processes. Leave your emotions at the door when trying to make a decision. Basing your decisions on emotional input does not usually bring the best result. Had you left a good faith deposit for our car purchase noted above, and brought in a mechanic, you might have been emotionally disappointed, but you’d have saved a lot of money.
3.When you’re trying to arrive at a sound decision, it’s a good idea to make a list of the objectives of the ideal solution. Let’s say you need to downsize your budget. Without a list of what you hope to achieve, you may rashly decide to cancel a credit card, instead of examining other areas of your budget that might be better candidates for cancellation. Here’s what a better decision making process would have revealed. Canceling your satellite service and your weekly dinner out might just provide the money you need. The credit card can be used for emergencies. Now what? You can always reinstate your satellite service and resume the Friday dinners out, but it may not be so easy to get another credit card.
4.Examine the pros and cons of each potential solution. In the case of the budget trimming exercise, you want to work out a number of possible solutions. Each will have trade-offs, good and bad. Write them down and give each some thought. Which is most practical? Which serves your purpose best?
5.A better decision making process requires that you do all of the research necessary to gather the facts you need. If one solution seems appealing, see if you have any doubts, due to missing information. All questions should be answered before you arrive at a decision. Don’t jump to conclusions.
6.Once you feel you’ve thoroughly examined all of the possible solutions, weigh the consequences in the whole scheme of that decision. Brainstorm, making a concerted effort to find adverse consequences of your decision of choice. If you can’t think of a thing to scotch this decision, you’re as prepared as you can be.
The road to better decision making is as simple as this formula. Use it as a guideline. You’ll be happier with most of your decisions in the future.
