The Undervalued Skill of Decision-Making
Throughout most of my life, I have undervalued the skill of making decisions. I have not considered the significant impact that decision processing has on my time. Nor have I really considered the challenges I face when not making decisions in a timely fashion. How often are you delayed or stalled in your progress while waiting for yourself to make up your mind? And how many setbacks have you had to recover from due to poor decisions?
The Importance of Decision-Making
Decision-making is one of the most crucial skills you need in life and in your career. There was never a class on this growing up, and I don’t remember taking one in college or even grad school. It seems that decision-making is only learned through experience. However, I believe we can dramatically improve this skill by dedicating time to learning, practicing, and evaluating decision-making models.
Decision-Making Models: A Necessity Not a Bore
While the thought of studying decision-making models might sound as exciting as watching paint dry, consider this: if a specific tool was necessary for our job, we’d seek training in it. So, why not decision-making models? Interestingly, there are graduate-level studies on these topics, mostly in management and business programs. There are at least 20 such models, each applicable to a specific industry. Terms like rational, bounded, and garbage, as well as acronyms such as O.O.D.A (Observe, Orient, Decide, Act), are part of this rich vocabulary. Most people do not apply much thought to decision-making, so any improvement can significantly distinguish you from the rest.
The Impact of Decision-Making in Leadership
If you are in leadership, the greatest impact you will have on an organization is based on your decisions. Making decisions quickly can give you an edge over the competition. Achieving a success rate of 6 out of 10 in your decisions will position you above your competitors. Clearly, learning to make well-informed and swift decisions is beneficial for both you and your business.
Personal Experience with the Satisficing Model
I came across a decision-making concept that has significantly aided my personal decision-making – the satisficing model by Herbert Simon. Previously, I would engage in what I called a cross-benefit analysis, a more rational decision-making process. This process often left me feeling overwhelmed due to my fixation on each component. Simon argued that humans cannot possibly grasp all the complexities of a multifaceted decision tree. He believed our cognitive abilities limit this process. Thus, we should be content with a decision that is “good enough,” giving rise to the term “satisficing” – a blend of ‘satisfy’ and ‘suffice’. This approach has not only become a foundation in recent advances in Artificial Intelligence but has also helped me overcome the paralysis caused by the fear of failure.
Applying the Satisficing Model to Career Decisions
For instance, consider making a significant career decision. The fear of failure can be overwhelming when selecting among several potential life paths. Here’s how you might apply the satisficing framework to this decision:
1. Identify Your Criteria
Determine what’s important to you in a career (salary, job satisfaction, work-life balance, location, etc.).
2. Research and Generate Options
Explore various career paths, job roles, and educational programs.
3. Evaluate Options
Assess how well each option meets your criteria, possibly assigning weights to different criteria.
4. Set Minimum Acceptable Levels
Decide what is “good enough” for each criterion, acknowledging that no option will be perfect.
5. Make a Decision
Select the option that best meets or exceeds your minimum thresholds.
In a world where decisions shape our personal and professional lives, adopting a practical and efficient decision-making model like satisficing can be transformative. It allows us to navigate choices with confidence, reducing the stress and indecision that often accompany significant decisions. Embracing this approach can lead to a more fulfilling and successful life.
