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We all make numerous choices in life and in business. Over time we look back at our choices and appreciate good decisions and acknowledge those that didn’t turn out the way we expected or intended. In some cases we wish we could roll back the clock and make different decisions. Most of our decisions have lasting consequences. The question is: Do those consequences lead to a story that we are proud to tell? Or, do they lead to regret or negative consequences with which we have to live?
I recently read a Q&A by Chip and Dan Heath in INC. Magazine by Leigh Buchanan, about making better decisions. They said, “Roughly two thirds of executives only consider one option when making decisions. That’s disastrous…”
So, what steps can we take to make better decisions? Here are four steps that will improve you decision-making process, especially when they involve high stakes.
1. Consider multiple options
Whether you are looking to hire a new employee or deciding on a key strategy for the future, it’s important to consider multiple options. When we don’t, we tend to narrow the frame which leads to biases in our decision-making process. When we add options, we get a better sense of what’s possible and increase the likelihood of a better outcome.
2. Be someone else
Simply put, try to see decisions from others’ perspectives. The best example is in 1985 when Intel was faced with the competitive cliff that eventually pushed their profits over the edge. Andy Grove, then president of Intel, was agonizing over the dilemma with Gordon Moore, its CEO at the time.
In his book, Only the Paranoid Survive, Grove asked Moore, “If we got kicked out and the board brought in a new CEO, what do you think he would do?”
Without hesitation, Moore answered, “He would get us out of memories.”
Grove stared at him, numbly, and then said, “Why shouldn’t you and I walk out the door, come back, and do it ourselves?” The outcome was profound. It’s an example of how our thinking is expanded when we see decisions from another’s perspective.
3. Get opposing views
We all are wired to take the information in front of us and arrange it in such a way to build the case we desire. In order to overcome this tendency, we need to intentionally interject opposing views.
If the decision has high stakes, such as an acquisition, you may want to form two teams – one team that prepares the case to buy the company and another team that prepares the case to not buy the company. The idea is to create the ability to see opposing views.
4. Do a pre-mortem
Many of us are familiar with post-mortems, so what’s a pre-mortem? It is a process that psychologist, Gary Klein, created. The process involves making the decision and then rolling the clock forward a year. With you and/or your leadership team, consider the decision a disaster. Then have everyone develop a list of possible scenarios and compare notes. Once you’ve done this, look at the list of negative scenarios and determine how many could be mitigated. Does that now give you the outcome you desire? If not, you may need to consider a different decision.
Share Your Thoughts: What step or steps do you need to incorporate into your decision-making process?
