7 important steps in the decision making process
Summary
The decision making process is a method of gathering information, assessing alternatives, and making a final choice with the goal of making the best decision possible. In this article, we detail the step-by-step process on how to make a good decision and explain different decision making methodologies.
We make decisions every day. Take the bus to work or call a car? Chocolate or vanilla ice cream? Whole milk or two percent?
There's an entire process that goes into making those tiny decisions, and while these are simple, easy choices, how do we end up making more challenging decisions?
At work, decisions aren't as simple as choosing what kind of milk you want in your latte in the morning. That’s why understanding the decision making process is so important.
What is the decision making process?
The decision making process is the method of gathering information, assessing alternatives, and, ultimately, making a final choice.
The following seven step process is intended for challenging decisions that involve multiple stakeholders , but this process can be used for something as simple as what cereal to pour into your breakfast bowl in the morning.
The 7 steps of the decision making process
Step 1: Identify the decision that needs to be made
When you're identifying the decision, ask yourself a few questions:
What is the problem that needs to be solved?
What is the goal you plan to achieve by implementing this decision?
How will you measure success?
These questions are all common goal setting techniques that will ultimately help you come up with possible solutions. When the problem is clearly defined, you then have more information to come up with the best decision to solve the problem.
Step 2: Gather relevant information
Gathering information related to the decision being made is an important step to making an informed decision. Does your team have any historical data as it relates to this issue? Has anybody attempted to solve this problem before?
It's also important to look for information outside of your team or company. Effective decision making requires information from many different sources. Find external resources, whether it’s doing market research, working with a consultant, or talking with colleagues at a different company who have relevant experience. Gathering information helps your team identify different solutions to your problem.
Step 3: Identify alternative solutions
This step requires you to look for many different solutions for the problem at hand. Finding more than one possible alternative is important when it comes to business decision-making, because different stakeholders may have different needs depending on their role. For example, if a company is looking for a work management tool, the design team may have different needs than a development team. Choosing only one solution right off the bat might not be the right course of action.
Step 4: Weigh the evidence
This is when you take all of the different solutions you’ve come up with and analyze how they would address your initial problem. Your team begins identifying the pros and cons of each option, and eliminating alternatives from those choices.
There are a few common ways your team can analyze and weigh the evidence of options:
Pros and cons list
SWOT analysis
Decision matrix
Step 5: Choose among the alternatives
The next step is to make your final decision. Consider all of the information you've collected and how this decision may affect each stakeholder.
Sometimes the right decision is not one of the alternatives, but a blend of a few different alternatives. Effective decision-making involves creative problem solving and thinking out of the box, so don't limit you or your teams to clear-cut options.
One of the key values at UDN Task Manager is to reject false tradeoffs. Choosing just one decision can mean losing benefits in others. If you can, try and find options that go beyond just the alternatives presented.
Step 6: Take action
Once the final decision maker gives the green light, it's time to put the solution into action. Take the time to create an implementation plan so that your team is on the same page for next steps. Then it’s time to put your plan into action and monitor progress to determine whether or not this decision was a good one.
Step 7: Review your decision and its impact (both good and bad)
Once you’ve made a decision, you can monitor the success metrics you outlined in step 1. This is how you determine whether or not this solution meets your team's criteria of success.
Here are a few questions to consider when reviewing your decision:
Did it solve the problem your team identified in step 1?
Did this decision impact your team in a positive or negative way?
Which stakeholders benefited from this decision? Which stakeholders were impacted negatively?
If this solution was not the best alternative, your team might benefit from using an iterative form of project management. This enables your team to quickly adapt to changes, and make the best decisions with the resources they have.
Types of decision making models
While most decision making models revolve around the same seven steps, here are a few different methodologies to help you make a good decision.
Rational decision making models
This type of decision making model is the most common type that you'll see. It's logical and sequential. The seven steps listed above are an example of the rational decision making model.
When your decision has a big impact on your team and you need to maximize outcomes, this is the type of decision making process you should use. It requires you to consider a wide range of viewpoints with little bias so you can make the best decision possible.
Intuitive decision making models
This type of decision making model is dictated not by information or data, but by gut instincts. This form of decision making requires previous experience and pattern recognition to form strong instincts.
This type of decision making is often made by decision makers who have a lot of experience with similar kinds of problems. They have already had proven success with the solution they're looking to implement.
Creative decision making model
The creative decision making model involves collecting information and insights about a problem and coming up with potential ideas for a solution, similar to the rational decision making model.
The difference here is that instead of identifying the pros and cons of each alternative, the decision maker enters a period in which they try not to actively think about the solution at all. The goal is to have their subconscious take over and lead them to the right decision, similar to the intuitive decision making model.
This situation is best used in an iterative process so that teams can test their solutions and adapt as things change.
Track key decisions with a work management tool
Tracking key decisions can be challenging when not documented correctly. Learn more about how a work management tool like UDN Task Manager can help your team track key decisions, collaborate with teammates, and stay on top of progress all in one place.
