How to make tough decisions?
Let me ask you, isn’t it hard to make decisions? Making the RIGHT decision is hard.
Before we begin, I’d like to tell you that you’re amazing and you’re an action taker.
But sometimes action isn’t enough.
I loved what Tai Lopez said. He said, ‘’KSE = Knowledge of what’s worked, strategize and personalize, execute and experiment.’’ Basically, think, plan, and execute. You can’t lack in any of these areas.
By the way, our community is growing. And you’re a part of it. Thank you all!
In my life, I have made a lot of decisions. Good and bad. And I can tell you this, making a wrong decision can kill you. I have been in so many situations where I could have regretted my life. And I want you to make the right decisions because if you don’t, it can end up bad.
This process is gonna do all the heavy lifting for you. You will make great decisions, find the right solutions, and make your life wonderful.
Just imagine, how cool it would be if you could make a quick solution to your current problem.
I want you to take a paper and write down one problem that you’re facing right now. Start off small. Problems with relationships? Health? Money? Happiness?
If you follow this step-by-step process, results are going to happen fast and easy.
”It’s remarkable how much long-term advantage people like us have gotten by trying to be consistently not stupid, instead of trying to be very intelligent.”
– Charlie Munger
”I know how to make decisions.”
We make decisions all the time, but there’s one problem. Actually a few.
First, we make quick decisions emotionally not rationally. We have multiple parts of our brain. And the one that makes the biggest mistakes is called the reptilian brain.
Yes, it’s helpful, we couldn’t live without it. The reptilian brain is quick. It’s all about survival.
But when it comes to big decisions, we can’t rely on it. We need logic.
Remember KSE? Strategy! We need strategy!
And second, there are different cognitive biases. Again, they are helpful. But when we need to solve a problem, we have to minimize their impact.
Why is decision making important?
You probably already have realized the importance of the decision making.
Decisions are important because they make changes.
How can you expect your life to change if you keep doing exactly what has kept you overweight, broke, and stuck?
What is decision making? (definition)
I wanted to know what Google had to say, and this is how they described it
”The action or process of making important decisions.”
Again, we make decisions all the time, but it doesn’t mean we make them the right way.
Decision making is a process. Step-by-step.
We will brainstorm all the available options to determine the most appropriate. If this process is not followed, we risk overlooking important information which may result in negative outcomes.
Let’s dive in.
What do you need to do before making a decision?
1. Identify the issue
You need to identify the problem in order to decide the best solution. Common sense, right?
Ask yourself, ”What’s the issue?”
2. Understand the issue
Then you have to understand that problem. In order to do that, you to identify the causes that led to the situation.
Ask yourself, ”What’s the cause?”
Identifying the causes will help you to determine options during the decision-making process and will help you to prevent similar situations from occurring in the future.
Six step decision-making process:
1. Decision-friendly environment
Create an environment where other opinions can be offered and respected.
If you’re deciding for yourself not an organization, make sure you understand the process, and find a place where you can be creative, place where nobody will disturb you.
The last thing we want is someone who comes into our room, closes windows, puts death metal on speakers, and starts eating.
If that doesn’t distract you, go ahead.
2. Devise objectives
We identified the issue and understood it. We’re in a safe place, no grandma with her pancakes…
Now it’s time to devise objectives.
Ask yourself, ”What do I want to achieve?”
Make sure your objective is:
Objectives should be developed with the organization’s priorities in mind.
If you’re deciding for yourself, make sure your goals are aligned with your values.
Challenging goals motivate employees to work harder and improve their overall performance.
However, objectives should be attainable since making them difficult will cause frustration.
So make sure they are challenging yet attainable.
Goals should be measurable in order to determine if they are met.
Setting measurable objectives will help you to determine if you’re making progress, if you need to change something, or if you have already completed the goal.
Objectives need to be flexible since we’re living in a rapidly changing environment.
As the saying goes, tomorrow is not promised. So make sure your goals are flexible.
Everyone involved must understand the issue, the essence of the problem and the objectives of the process
For more about goals, make sure you grab your FREE 7 Step Goal Setting Guide.
3. Establish options
Ask yourself, ”What we can do? What are the options?”
The more options available, the better. Again, it’s very important that you’re in the right environment and mood.
Be creative, brainstorm.
But first, make sure you have gathered all the data and necessary information because decisions that are not based on solid facts are unlikely to produce the desired results.
4. Compare options
Now it’s time to compare the strengths and weaknesses of multiple options. That allows you to determine the most effective one.
Remember, there’s always a risk. Evaluate the full set of alternatives according to risk.
There are three classifications:
Good options result in successful achievements. These options address the issue completely.
Bad options fail to adequately address the issue and result in unwanted outcomes.
Mediocre options have both good and bad aspects that affect the achievement of the decision’s objectives.
Ask yourself, ”What’s the risk? What are the strengths and weaknesses? Is it a good, bad, or mediocre option?”
So, just to recap.
We know and understand the issue. Our environment is great. We know what we want to achieve. We have found a couple of solutions. And now we’re comparing each other.
5. Identify the best choice
Ask yourself, ”What’s the best option?”
Before picking the best decision, make sure you have compared the pros and cons. Don’t skip the fourth step.
If you have too many choices, ask questions to evaluate them, such as:
Are they genuine?
Are they feasible?
Also consider basic variables, such as: cost, benefits, resources, risk, time and ethics.
Of course, make sure the option meets the objectives.
You can use a “prioritization matrix” when identifying the best choice.
- List your goals.
- Then assign each alternative a weighted score based on various indicators of how well it meets those goals.
- The highest score indicates the best decision.
6. Ensure results
Make a final decision and take action.
After you have made a decision, determine the standards, so you know whether the decision fulfilled its objectives.
There are two steps in order to determine if a decision is successful.
- Determine the performance standards of the decision.
- Measure the decision’s results. Ask yourself ”Does this decision met my goals?”
If something doesn’t work out as planned – adapt and change. Go back to step one and start over.
Avoid these common decision-making pitfalls:
• Overconfidence – Making a decision without data. Make sure you collect enough information.
• Sunk cost – Relaying on past. Do not let the past stand in the way of changing your mind or abandoning a bad idea.
Congratulations! You’re awesome!
Now, I hope you will make right decisions. Leave your thoughts about this process down below.
And make sure you grab your FREE 7 Step Goal Setting Guide.