Home decision making skills Strategies for building effective decision-making skills

Strategies for building effective decision-making skills

September 25, 2024

This article has been written by Vidhathri pursuing a Training program on Using AI for Business Growth from Skill Arbitrage.

This article has been edited and published by Shashwat Kaushik.

What is a decision

A decision is made by looking at the information available, assessing it over various parameters and drawing conclusions from it in order to reach a suitable solution for the given scenario or situation. A decision can be as simple as picking a dress for an important client meeting or the lunch menu to be ordered. Decisions or choices are part and parcel of our lives.

We make a choice every minute and one thing to remember is that every choice or decision comes with its own set of consequences.

What is decision making skill

Decision making skill is one of the crucial aspects of our lives, whether it involves personal or professional decisions. One right decision can be a total game changer in a person’s life; at the same time, one wrong move can be a total disaster as well.

Decision making is in fact a valuable skill. Indeed, a good decision can save a lot of time and effective use of resources at work or give us a lot of comfort in personal life.

Why is decision making important

At every stage, there is a need for making a choice. Therefore, a good decision making skill is not an ordinary skill but is in fact a critical skill. In a way, taking the right decision is equivalent to having done 50% of the job, as the right decision would have involved a lot of planning and thoughts about the future.

It is a cognitive skill that has high demand not just in the professional world but also in our personal life ambitions.

How does it impact us

Decision-making defines our next course of action and multiple such collective decisions result in a bigger action. So every small or big decision ultimately helps us reach where we actually wanted to arrive.

So every action counts and a small deviation can set us on the wrong course. At the same time, a well-stated one can help us achieve our greater goals.

Approaches to arrive at the right decision

Information gathering

In order to arrive at the right conclusion, there is a need to know all the facts correctly, so gathering the right quality and quantity of information is the primary step in decision making. Also, factual checking and validating the source of information and segregating it into productive and non-productive information is the first step in arriving at a result.

Active listening

Before arriving at a conclusion, one has to be an active listener, as this opens a door for opportunity by having to know a different perspective and how things can be viewed from another dimension. Each individual will have a different set of experiences and thought processes, so it gives room for totally new ideas and thoughts.

Take sufficient time

The next step is analysing the information gathered. Taking sufficient time in analysing the information acquired and measuring the results, ups and downs of the decision to be made. At the same time, consider the fact that the data obtained shouldn’t be overprocessed either.

Clear priorities and goals

Having a clear goal makes it easier and simpler to make a decision, as every action will ultimately contribute to the final goal to be achieved. It becomes easier to eliminate the possibilities that are not achievable if the priorities are unclouded.

Understanding the complexity of solution

Sometimes the solution may be complex or hard to implement, but that shouldn’t be the blocker for the decision to be made. As some choices require a lot of determination and a strong mindset to arrive at the choice as well as to go with the choice. Some decisions are hard to make; doing what’s right rather than what seems convenient is better.

Strategic approach for decision-making

Having analytical and critical thinking

Any decision to be made has to be analysed for its pros and cons, and based on it, logical decisions have to be aligned. Using an individual’s analytical and critical thinking strategy plays a vital role in arriving at a methodological approach for decision making.

Strategy and planning

Some big business decision needs a strategy where the entire plan is to be split into multiple segments, categorised and then the right outcomes have to be drawn. It can be such as analysing a large set of data and charts or can be a decision that involves a diversified set of data.

Acquired approach for decision-making

Having flexibility of thoughts

This requires a person to be open to suggestions and ready to listen to input that is given and use it as a data point to have a better understanding of the problem. Not having a restrictive mindset and willingness to accept new ideas has to be the mindset of every decision making individual.

Ability to compromise

Some decisions will be like a give and take situation. Letting go of some things in order to gain something else that is much needed than the one that is let go of has to be measured.

Having the mindset of adjusting or compromising is critical here. Not all choices involve this but some situations may need this. Having a bigger picture of the solution and the impact can help us try this approach.

Emotional intelligence

Every situation can’t be handled technically or logically , especially when some personal decision has to be made based on emotional thoughts. If a problem needs an emotional dimension, then consider self-awareness, self-regulation, motivation, empathy, and social skills before arriving at a solution.

Analyse-practical, emotional and gut feeling

Involving all three brains and prioritising the decision based on the scenario by picking the right one seems more achievable and feasible for any given situation.

If a problem statement involves creativity, calculative steps to be taken, and logic is involved, then use the head (cephalic brain). Logical or technical issues need tactics to arrive at a solution, so critical thinking is needed here.
If the problem needs passion, human values should be considered; use the heart (cardiac brain). Problems needing a solution that is non-technical and human emotions are involved; logic cannot be brought in. In these situations, listen to the heart.
If the problem requires understanding of courage, self-protection, and human values in general, use the gut feelings (enteric brain). Situation where neither heart nor brain cannot arrive at a solution, where intuition can make a call, then let intuition take action.

Being considerate

At the same time, acting upon gut could be driven by personal bias most of the time, so during the course of choice, this parameter has to be kept in check. A fair and unbiased decision with no attachment to the outcome or any person involved is the honest approach while making an unbiased decision. Also, not just individual opinions are to be considered when it is a problem involving a larger audience but multiple approaches have to be discussed and iterated with a collective audience before the final word.

Involving the right set of people

If the decision making requires a group of audience members to analyse the various aspects of it, then involve the right category of people. People with more experience in that domain, people with higher critical thinking and people who can understand the problem well can be pulled into a discussion for a deeper analysis of the problem.

Extrapolating the effect the decision

Analyse the decision impact in the next few hours, a few days, and for the next few years. Is the decision made working the very next moment, then over the short time span as well as in the long term has to be carefully analysed before making a choice.

After effect analysis

Sometimes, whatever the precaution is taken, there is still a chance of making a wrong move. So always to be remembered, the decision made comes with an aftereffect, and we should be ready to bear that, which can be both good and bad.

Is there a need for decision

Sometimes there is so much pressure in making a decision that we forget to analyse if there is a need to make a decision. Some situations don’t ask for the decision right away; things can happen in a flow. Not taking a decision can also be a big decision sometimes.

Committing to the decision made

There is always no need to worry about getting things done perfectly; rather, focus on the best interest of everything and everybody has to be taken into consideration. Standing by the choice made and not over or undercommitting to anything can lead to a better resolution overall to a problem.

Having an overview

Having proper understanding and judgement about an idea and identifying why the decision has to be made and who all are to be involved and who and what are impacted is to be carefully calculated before moving ahead.

Conclusion

In conclusion, based on the need and the type of situation we are in, whether a personal choice or a major business decision, incorporating the abovementioned strategies and methods can yield better results.

Believing in ourselves and our abilities and standing by our choice makes us more confident and independent. One thing to remember is that all the decisions won’t be pleasant and not all will be happy with the choice that is made. Doing what seems righteous and strategic is to be done.