How To Making Better Decisions
Are you a decisive person? If your answer is, “I don’t know,” you’re probably not! Some people are better at making decisions than others. Some people are better at making the RIGHT decision better than others, and some people could use a little help.
Regardless of which category you fall into, as a business owner, you’re likely faced with making decisions all day long, some that could have lasting impacts.
Learn to make better decisions faster using these six steps:
1. Quit Trying to Achieve Perfection
Economist Herbert Simon wrote about “satisficing” in 1956. Basically, a satisficer takes action as soon as their criteria are met. It’s not a matter of settling for less than the best. Instead, it’s setting and sticking to criteria that you know you’ll be satisfied with once they’re met.
Maximizers are different. They want to make the best or optimal decision. Even if their criteria are met, they will keep looking for a better option. They’re never truly satisfied because they believe there’s a better option that they couldn’t find. Satisficers are happier because they spend less mental energy trying to find perfection. Constantly looking for more information comes at a cost. At some point you have to stop and make a decision.
2. Think Like Franklin
Make Better Decisions Get our free guideJoseph Priestley was the nephew of Benjamin Franklin. Priestley wrote to his uncle about a tough life decision he had to make. Franklin told him to use something he called moral algebra. Divide a piece of paper in half and write the pros on one side and the cons on another. After thinking about it for a few days, when you find a pro and con that are of equal weight, cross each of them off your lists. What is left is the best answer.
3. Go with Your Gut
Psychologist Gerd Gigerenzer wrote a book called “Gut Feelings.” He said that we’re wired to make quick decisions based on limited information. “Heuristics,” as he calls it, is simply taking efficient cognitive shortcuts to make better decisions faster.
To break down all of the science, think of this: Every decision has numerous variables you could consider, but if Gigerenzer is correct, you will quickly decide which are the most important and only consider those.
You might be thinking that considering less information is quite an ignorant approach to making a decision. If that’s your view, there’s a large body of psychologists that agree with you, but Gigerenzer asked a computer to analyze which Chicago high school a pair of hypothetical parents should most consider for their child. The computer weighed 18 variables using a complicated formula. In the end it only considered 2 of the 18 variables to make the choice. Gigerenzer argues that this is proof that more information isn’t better.