How do people make decisions? Does it differ between business decisions and private decisions?
I study (and sometimes suffer from) inferior decision making processes almost every day and after quite a few years of experience I decided to share this:
- Decisions are made based on the need of being right - and to prove it!
- If a decision is made and later proven wrong it will not be changed!
- If a suggestion is presented by someone with authority it is most likely to be decided no matter how badly it is under built
- If the suggestion is presented together with other possible alternatives giving the decision makers a good basis for making a well based decision it is probable that there will be no decision made. Better to just present the suggestion you want to get decided.
- If you are the one taking the consequences of the decision (which the presenter of the solution probably isn’t) the suggestion is more likely to be a good one.
- If the best decision might lead to conflicts it is likely that another decision will be made.
So the best way to get something decided is to present the suggestion with authority, if you don’t have it - get someone to do the presentation for you. Don't present any alternatives and if you are not totally sure that you are willing to pay for the consequences of the decision - run the fastest you can out of there and don't look back. Just make sure you get paid before leaving.
When it comes to private decisions they are more likely to be clever since you almost always take the consequences if they are wrong and benefit if they are right. If business decisions were made more like private decisions (maybe if we exempt decisions about love and children…) I dare to say we would have much more profitable companies, more effective organisations and definitely more happy employees.
Private decisions are made:
- Based on the expected outcome
- Based on how your surrounding is affected
- The cost/price of the decision
- Based on analysing all possible solutions (maybe sometimes too much analysing)
If you have to make a quick decision in private life you do - you never even consider postponing it if you will suffer from waiting. How is it done in business? If you don't know I will not tell you….
Is this a way for me to tell the world that I aim for a position as decision maker? Definitely!!