On Soft Skills: Decision-Making
Evaluating your decision-making methodology is as important as the decision itself.
A continuation of our Soft Skill series. Catch up on other Soft Skill articles here.
Decision-making is a crucial soft skill that plays an essential role in our personal and professional lives. It involves evaluating information, considering possible options, and ultimately arriving at a choice that will guide future actions. Good decision-making skills are not innate; they can be learned and improved over time. Developing these skills enables individuals to approach situations with confidence, weigh potential outcomes thoughtfully, and make informed choices that align with their goals and values.
Decision-making is the process of making choices by identifying a decision, gathering information, and assessing alternative resolutions. It involves the ability to analyze situations, consider various perspectives, weigh the consequences, and choose the best course of action.
Effective decision-making is crucial in all aspects of life. It impacts our relationships, careers, and overall well-being. Making sound decisions can lead to positive outcomes such as achieving goals, building strong relationships, and improving self-confidence. Poor decision-making can result in negative consequences such as missed opportunities, strained relationships, and increased stress levels.
Good & Bad Decision-Making
Good decision-making involves critical thinking, problem-solving skills, and the ability to manage emotional responses. It requires a balance between logic and intuition, as well as considering both short-term and long-term consequences, opportunities, and impacts.
Bad decision-making is often impulsive, based solely on emotions or influenced by external factors such as peer pressure or societal norms. It can also stem from a lack of self-awareness and understanding of personal or professional values and goals.
Judging a decision as good or bad is often done retrospectively and tied to the ultimate outcomes of the decision rather than to the methodology that formed the decision. It is essential to recognize that even good decisions can have unfavorable consequences and that bad decisions can lead to positive outcomes.
Why this matters: we make hundreds to thousands of decisions every day. Many of these decisions are low to no impact with minimal consequences. Yet with each decision, we engrain our decision making methodology. If the foundational methodology is flawed, our decision-making ability worsens over time - and when bigger decisions with deeper impacts are on the table, the consequences are more substantial without a solid foundation in place.
Common Decision-Making Models
There are several decision-making models that individuals and organizations use to improve their decision-making processes and methodologies. Some common models include the Rational Decision-Making Model, Six Thinking Hats, and the Minto Pyramid Principle.
The Rational Decision-Making Model involves a systematic approach to decision-making by identifying the problem, gathering information, considering alternatives, evaluating consequences, and choosing the best solution based on logic and reasoning.
Why use this model: It helps individuals and teams make well-informed decisions based on logical reasoning rather than emotions or biases.
Six Thinking Hats is an more abstract technique where individuals think about different aspects of a situation or problem from six different perspectives: facts (white hat), emotions (red hat), benefits (yellow hat), potential problems (black hat), creativity (green hat), and overview/summary (blue hat). This method encourages critical thinking and allows for a comprehensive evaluation of a decision from multiple angles.
Why use this model: It encourages individuals to think broadly and consider multiple aspects of a decision before coming to a conclusion.
The Minto Pyramid Principle involves organizing ideas in a structured, logical framework to facilitate clear and concise communication. This model is particularly useful for presenting decisions or recommendations to others.
Why use this model: It promotes clear communication and logical thinking when presenting ideas or making decisions.
Techniques for Effective Decision-Making
No matter the decision-making model, certain techniques will help strengthen your decision-making abilities, including:
Gather Information: Before making a decision, gather as much information as needed from reliable sources. This will help you understand the situation better and consider all pertinent factors. Keep in mind: you will never have all the information before making a decision. Instead, try to identify what information is critical to the decision and gather only what is needed.
Consider Different Perspectives: Look at the situation from different angles and try to understand how others may perceive it. This can provide valuable insights and help you make a more well-rounded decision. Keep in mind: most decisions will impact not just you, but others around you. Considering other perspectives will also help you communicate the rationale and impacts to others who are affected.
Use Logic & Intuition: Combine logical reasoning with gut instinct when making decisions. Logical thinking can help you evaluate the pros and cons of each option, while intuition can help guide you towards the right choice. Keep in mind: intuition is born out of your personal experience and is aligned to your core values. Intuition is separate from emotion or impulse.
Be Aware of Personal Bias: Everyone has their own biases and prejudices that can influence decision-making. Make an effort to be aware of your own biases and try to approach decisions with an open mind.
Consider Short-Term & Long-Term Consequences: It's important to think beyond immediate rewards or consequences when making a decision. Consider how your decision will impact your future self and others in the long run. Keep in mind: sometimes a decision is a two way door where it's easy to backtrack if you later reconsider the decision; sometimes a decision is a one way door that locks behind you. Identifying which door you will walk through with a decision will help evaluate the consequences, risks, opportunities, and impacts.
Practice Self-Awareness: Develop a strong understanding of your values, goals, and emotions. This can help you make decisions that align with your personal and professional principles. Keep in mind: you own your decisions and may also impact others with your choices.
Seek Advice: Don't be afraid to seek advice from trusted individuals when making a difficult decision. They may provide valuable insights or offer a different perspective that can help you make a better choice.
Balance Time to Scale: Decision-making should not be a rushed process, but balanced to the scale of the decision and resulting outcomes. Give yourself enough time to gather information, consider options, and reflect on the potential outcomes before making a conscious decision, especially if the impacts are significant.
Integrating Other Soft Skills in Decision-Making
While hard skills are essential for getting the job done, soft skills play a vital role in effective decision-making. These skills include:
Emotional Intelligence: Being aware of one's emotions and being able to manage them is crucial when making decisions. It allows individuals to consider the impact their emotions may have on their choices and enables them to make more rational decisions.
Critical Thinking: The ability to think critically is necessary for analyzing situations and considering multiple perspectives. It allows individuals to evaluate information objectively and make well-informed decisions.
Communication: Effective communication is vital when making decisions, especially in a team setting. It ensures that everyone involved understands the situation and can contribute their insights and opinions.
Problem-Solving: Decision-making often involves problem-solving, identifying potential obstacles, and finding solutions. Strong problem-solving skills allow individuals to consider alternative options and choose the best course of action.
Honing these additional soft skills can greatly enhance decision-making abilities and lead to more effective and successful outcomes. It's important to continuously practice and develop these skills to become a well-rounded and proficient decision-maker.
Additional Resources on Decision-Making
Ready to learn more about decision-making? We recommend:
Read
Decisive: How to Make Better Choices in Life and Work by Chip Heath and Dan Heath
This book offers a comprehensive guide on making better decisions by avoiding common pitfalls and using a four-step process.
Thinking, Fast and Slow by Daniel Kahneman
Nobel laureate Daniel Kahneman explores the two systems of thought that drive our decisions, providing insights into how we can make better choices.
The Decision Book: 50 Models for Strategic Thinking by Mikael Krogerus and Roman Tschäppeler
This book presents 50 models to help you make better decisions, understand complex situations, and enhance strategic thinking.
Listen
Explores decision-making through the lens of behavioral science, featuring interviews with experts.
A podcast about the psychology and economics of decision-making, exploring why we make certain choices and how to improve them.
Hidden Brain with Shankar Vedantam
This podcast delves into the unconscious patterns that drive human behavior, including decision-making.
Watch
Effective Problem Solving & Decision-Making from The University of California-Irvine
How to Make Smart Decisions More Easily from TED-Ed
Explore the psychology of decision fatigue, what kinds of choices lead us to this state and what we can do to fight it.