Simple processes for problem-solving and
decision-making
Problem solving and decision-making are important skills for
business and life. Problem-solving often involves decision-making, and
decision-making is especially important for management and leadership. There
are processes and techniques to improve decision-making and the quality of
decisions. Decision-making is more natural to certain personalities, so these
people should focus more on improving the quality of their decisions. People
that are less natural decision-makers are often able to make quality assessments,
but then need to be more decisive in acting upon the assessments made.
Problem-solving and decision-making are closely linked, and each requires
creativity in identifying and developing options, for which the brainstorming technique is
particularly useful. See also see SWOT analysis templates, and PEST analysis template, which help decision-making and
problem-solving. SWOT analysis helps assess the strength of a company, a
business proposition or idea; PEST analysis helps to assess the potential and
suitability of a market. Good decision-making requires a mixture of skills:
creative development and identification of options, clarity of judgement,
firmness of decision, and effective implementation. For group problem-solving
and decision-making, or when a consensus is required, workshops help, within which you
can incorporate these tools and process as appropriate. Here are some useful
methods for effective decision-making and problem-solving: First a simple
step-by-step process for effective decision-making and problem-solving.
Decision-making process
Define and clarify the issue - does it warrant action? If so, now?
Is the matter urgent, important or both. See the Pareto
Principle , which is :
The Pareto Principle (at a simple
level) suggests that where two related data sets or groups exist (typically
cause and effect, or input and output):
"80 percent of output is produced by 20 percent of
input."
or alternatively
"80 percent of outcomes are from 20 percent of causes"
or alternatively
"80 percent of contribution comes from 20 percent of the
potential contribution available"
There is no definitive Pareto 'quote' as such - the above are my
own simplified interpretations
So
back to the process ……..
1.
Gather all the facts and understand their causes.
2.
Think about or brainstorm possible options and solutions.
3.
Consider and compare the pros and cons of each option - consult if
necessary - it probably will be.
4.
Select the best option - avoid vagueness or 'foot in both camps'
compromise.
5.
Explain your decision to those involved and affected, and follow
up to ensure proper and effective implementation.
Decision-making maxims will help to reinforce the above decision-making
process whether related to problem-solving or not, for example:
"We know what happens to people who stay in the middle of the
road. They get run down." (Aneurin Bevan)
"In any moment of decision the best thing you can do is the
right thing, the next best thing is the wrong thing, and the worst thing you
can do is nothing." (attributed to Theodore Roosevelt)
JFDI - Just Frigging Do it
(polite version). The decision-maker's motto. There are usually several right
answers when you are faced with a complex decision. When you've found the best
solution you can find, get on with it, make it work, and it most probably will.
Remember the Star Principal . Stop , Think, Act , Review
Pros and cons decision-making method
Another simple process for decision-making is the pros and cons
list.
Pro means 'for', and con means 'against'. In other words,
advantages and disadvantages.
This method also applies to all sorts of problem-solving where
issues and implications need to be understood and a decision has to be made.
Some decisions are a simple matter of whether to make a change or
not, such as moving, taking a new job, or buying something, selling something,
replacing something, etc. Other decisions involve number of options, and are
concerned more with how to do something, involving a number of choices. Use the brainstorming process to identify and
develop options for decision-making and problem-solving.
1.
First you will need a separate sheet for each identified option.
2.
On each sheet write clearly the option concerned, and then beneath
it the headings 'pros' and 'cons' (or 'advantages' and disadvantages', or
simply 'for' and 'against'). Many decisions simply involve the choice of
whether to go ahead or not, to change or not; in these cases you need only one
sheet.
3.
Then write down as many effects and implications of the particular
option that you (and others if appropriate) can think of, placing each in the
relevant column.
4.
If helpful 'weight' each factor, by giving it a score out of three
or five points (e.g., 5 being extremely significant, and 1 being of minor
significance).
5.
When you have listed all the points you can think of for the
option concerned compare the number or total score of the items/effects/factors
between the two columns.
6.
This will provide a reflection and indication as to the overall
attractiveness and benefit of the option concerned. If you have scored each
item you will actually be able to arrive at a total score, being the difference
between the pros and cons column totals. The bigger the difference between the
total pros and total cons then the more attractive the option is.
7.
If you have a number of options and have complete a pros and cons
sheet for each option, compare the attractiveness - points difference between
pros and cons - for each option. The biggest positive difference between pros
and cons is the most attractive option.
8.
N.B. If you don't like the answer that the decision-making
sheet(s) reflect back to you, it means you haven't included all the cons -
especially the emotional ones, or you haven't scored the factors consistently,
so re-visit the sheet(s) concerned.
You will find that writing things down in this way will help you
to see things more clearly, become more objective and detached, which will help
you to make clearer decisions.
This example weighs the pros and cons of buying a new car to
replace an old car.
The weighted pros and cons are purely examples - they are not in
any way suggestions of how you should make such a decision. Our decision-making
criteria depend on our own personal situations and preferences. And your
criteria and weighting will change according to time, situation, and probably
your mood too.
Use whatever scoring method you want to. The example shows low
scores but you can score each item up to 10, or 20 or 100 - whatever makes
sense to you personally. Or you can use an 'A/B/C' or three-star scoring
method, whatever works for you.
Should I replace my
old car with a new one?
|
pros (for - advantages)
|
score
|
cons (against -
disadvantages)
|
score
|
better comfort
|
3
|
cost outlay will mean
making sacrifices
|
5
|
lower fuel costs
|
3
|
higher insurance
|
3
|
lower servicing costs
|
4
|
time and hassle to
choose and buy it
|
2
|
better for family use
|
3
|
disposal or sale of
old car
|
2
|
better reliability
|
5
|
big decisions like
this scare and upset me
|
4
|
it'll be a load off my
mind
|
2
|
|
|
|
|
|
|
total 6 pros
|
20
|
total 5 cons
|
16
|
In the above example, on the basis of the pros and cons and the
weighting applied, there seems to be a
clear overall (and quantifiable) advantage in the decision to go ahead and buy
a new car.
Notice that with this decision-making method it's even possible to
include 'intangible' emotional issues in the pros and cons comparison, for
example 'it'll be a load off my mind', and 'decisions scare and upset me'.
A decision-making pros and cons list like this helps remove the
emotion which blocks clear thinking and decision-making. It enables objectivity
and measurement, rather than reacting from instinct, or avoiding the issue
altogether. Objective measurement helps in making a confident decision.
The total weighted scores are the main deciding factor rather than
the total number of pros and cons, although there is not a scientific 'right'
or 'wrong' way to consider the total number of pros and cons compared with the
total weighted scores.
If the weighted scores are indicating a decision which makes you
feel uncomfortable, then check your weightings, and also check that you've not
missed out any factors on either side of the table.
If the decision makes you feel uncomfortable and this is not
reflected in the table, then add it as a factor and give it a score.
Seeking feedback or input from a trusted neutral friend can be
helpful in confirming your factors and their scores.
And once you have made your decision , get on with it
Keep Smiling !