Anticipating consequences is an essential step in analyzing and testing solutions.
Method #1: Weigh Your Criteria With the Decision Matrix
To make a straightforward decision, you could simply make a list of its pros and cons. However, your brain will feel overloaded when the choice is complex and involves many variables. Using a decision matrix is much more effective in this situation. A decision matrix allows you to list all options and evaluate them according to various weighted criteria. It assures an objective and smarter choice.
How do I create my decision matrix?
Use this six-step method.
Step 1: Ask Yourself the Right Question
What decision do I have to make? In Emma's case: "Should I stay in my current job, look for another one, or reinvent my career?"
Step 2: List the Available Choices
During a brainstorming session, or in personal reflection, compile a list of available possibilities. Identify the issues, strengths, and weaknesses and update the criteria.
Step 3: Define the Degree of Importance
Review the possibilities you listed in the previous step. What would make this decision a successful one? What matters in this decision? Create a list of relevant criteria to help you assess each option.
Assign a weight to each of your criteria (from 0 to 5).
Review your criteria, and delete any that have little influence on your final decision.
Step 4: Build the Matrix
Place the criteria along the x-axis and the options along the y-axis in a table.
Beneath each criterion, add it's weight.
Step 5: Evaluate Each Solution and Calculate the Overall Score
Consider each option as it relates to each individual criterion.
Give each criterion a score out of 5.
Calculate the weighted score by multiplying each score by the criterion's weight .
Record each total.
Step 6: Make Your Decision
You're ready to make the decision. The highest score is the solution.
Method #2: Build Your Decision Tree
Use the predictive decision tree when you're stuck between several alternatives and need an in-depth analysis of your choices. You can use it on your own or in group reflections.
The decision tree is a powerful tool to help you make suitable choices, analyze risks, and consider all success factors. It's easy to implement and simplifies your decision-making by generating a visual representation of the options and different scenarios. You can use this tool on your own, but it's also effective in a group setting. If working in a group, you can build the tree collectively to develop possible solutions and make a joint decision.
What does a decision tree look like?
Let's look at Emma's decision: she could build her decision tree around two major options:
Getting hired in a start-up as an employee - Yes - No.
Self-employment as an independent freelancer - Yes - No.
How can I build my decision tree?
Step 1: Pose your problem (What's your decision?).
Step 2: Determine the main branches (What are the solutions?).
Step 3: Define the sub-branches. Define your possible "sub-choices."
Step 4: Choose one or more determining criteria. What criteria will help to differentiate your choices? For example, you could prioritize economic impact (profit), well-being, time, environmental or social impact.
Step 5: Calculate the costs associated with each of your choices: this involves estimating what you could gain by making this choice. This is merely an estimate. You may choose to calculate a more optimistic "high" estimate and a "low" estimate to get a more objective view of the situation.
Step 6: Make your decision. Use your estimates to determine the best choice.
It's Your Turn
Ready to take action? Build your decision tree by dissecting a professional problem you're currently facing. Draw out possible scenarios and assess their relevance by estimating costs and measuring risks.
Method #3: Use the Eisenhower Matrix
Time management is essential in decision-making. To do this effectively, you'll have to determine which tasks are important and which ones are urgent.
General Eisenhower's matrix helps you to prioritize decisions, and allows you to classify your activities within a matrix made up of two axes: important and urgent. Here's an illustration of the four boxes:
Using the matrix above, which tasks would you prioritize? Try numbering the boxes from 1 (most urgent) to 4 (least urgent).
Have you finished? Let's start by defining the terms "important" and "urgent:"
Important = That which has considerable value.
Urgent = That which cannot be postponed.
It's essential to consider your tasks in the following order:
Important and urgent tasks are an absolute priority.
Important, but not urgent, tasks are scheduled with a deadline. These are activities with high added value or high impact.
Unimportant but urgent tasks that have a limited impact can be delegated.
Unimportant and non-urgent tasks can be deleted or placed into a later project and put on hold.
In your decision-making process, break down your activities according to the degree of urgency and importance to avoid being overwhelmed by smaller tasks.
It's Your Turn
Complete the Eisenhower matrix by applying it to your own situation. List your tasks in the different boxes of the matrix, referring to the information provided for each box above.
Let's Recap!
You learned to use a wide variety of methods to facilitate your decision-making. You can now:
Differentiate risks and uncertainties to analyze your environment and weigh the stakes of your problem.
Build your decision tree to visualize all the possible scenarios of a complex decision. This tool allows the quantification of each option, providing high or low probabilities.
Weigh your criteria with the decision matrix. Once the solutions are identified, you can cross-reference them with criteria you have previously graded in a table.
Use the Eisenhower matrix to help you prioritize tasks, while keeping your goals firmly in mind. You can also list the actions to be actioned, postponed, delegated, or put aside.
Well done. You've now mastered the decision-making approach and are comfortable with the tools to help you make decisions. Before the class comes to an end, here are some tips.
