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.

Decision-making process

1. Define and clarify the issue - does it warrant action? If so, now? Is the matter urgent,
important or both?
2. Gather all the facts and understand their causes.
3. Think about or brainstorm possible options and solutions.
4. Consider and compare the 'pros and cons' of each option - consult others if necessary or
useful - and for bigger complex decisions where there are several options, create a
template which enables measurements according to different strategic factors
5. Select the best option - avoid vagueness and weak compromises in trying to please
everyone.
6. 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."
There are often more than one good answers when you are faced with a complex decision. When
you've found the best solution you can find, involve others in making it work, and it probably
will.

Use this template to start your innovation and change decision-making process, or to help others
with these challenges
 
Innovation and change - decision-making facilitation template
Change and Innovation Template (increase box sizes as appropriate)
1.1 Take a look around your environment (home, family,  
business, personal). What issues do you see ongoing that you
have not managed yet?

1.2 What has stopped you from managing them until now?  

2.1 What would you need to see/hear/feel to recognize when it  

was time to do something different?

3.1 What criteria do you use to decide what aspects of the  

situation need to be changed?

3.2 Which aspects should stay the same?  

3.3 What is the difference between the two?  

3.4 And how will you know if you've chosen the appropriate  
elements for each?

4.1 How will you decide who would need to be brought into the  
'change' conversation to ensure you have buy-in from interested
parties?

4.2 How do you plan on bringing them into the decisions you  
need to make?

4.3 How will you know that they are indeed supportive of your  
change issues?

4.4 How will you know if they are not supportive?  

4.5 How will you manage the situation if they believe they will  
be harmed by the change?

5.1 How will you and your decision partners determine all of  
the aspects that need to be managed?

5.2 What elements of the situation need to be shifted first?  

5.3 What elements of the situation need to be shifted second?  
5.4 How will you handle differences of opinion?  
6.1 How will you monitor your process?    
6.2 How will you know if/when you are going off course and  
need additional support (possibly from the outside)?
6.3 How will you and your decision partners help you in your  
monitoring?
7.1 What will success look like?  
7.2 How can you be sure that the problem will remain solved  
over time?
8.1 What does follow up and follow through look like?   

Rational Versus Organic Approach to Problem Solving

Rational

A person with this preference often prefers using a comprehensive and logical approach similar
to the guidelines in the above section. For example, the rational approach, described below, is
often used when addressing large, complex matters in strategic planning.

1. Define the problem.

2. Examine all potential causes for the problem.
3. Identify all alternatives to resolve the problem.
4. Carefully select an alternative.
5. Develop an orderly implementation plan to implement that best alternative.
6. Carefully monitor implementation of the plan.
7. Verify if the problem has been resolved or not.

A major advantage of this approach is that it gives a strong sense of order in an otherwise chaotic
situation and provides a common frame of reference from which people can communicate in the
situation. A major disadvantage of this approach is that it can take a long time to finish. Some
people might argue, too, that the world is much too chaotic for the rational approach to be useful.

Organic

Some people assert that the dynamics of organizations and people are not nearly so mechanistic
as to be improved by solving one problem after another. Often, the quality of an organization or
life comes from how one handles being “on the road” itself, rather than the “arriving at the
destination.” The quality comes from the ongoing process of trying, rather than from having
fixed a lot of problems. For many people it is an approach to organizational consulting. The
following quote is often used when explaining the organic (or holistic) approach to problem
solving.

A major advantage of the organic approach is that it is highly adaptable to understanding and
explaining the chaotic changes that occur in projects and everyday life. It also suits the nature of
people who shun linear and mechanistic approaches to projects. The major disadvantage is that
the approach often provides no clear frame of reference around which people can communicate,
feel comfortable and measure 0progress toward solutions to problems.

Decision Making
People often say that they find it hard to make decisions.
Unfortunately we all have to make decisions all the time, ranging from trivial issues like what to
have for lunch, right up to life-changing decisions like where and what to study, and who to
marry.
Some people put off making decisions by endlessly searching for more information or getting
other people to offer their recommendations.
Others resort to decision-making by taking a vote, sticking a pin in a list or tossing a coin.
This page provides some ideas that are designed to help those who struggle to make decisions
large or small.

What is Decision Making?

In its simplest sense, decision-making is the act of choosing between two or more courses of
action.
In the wider process of problem-solving, decision-making involves choosing between possible
solutions to a problem. Decisions can be made through either an intuitive or reasoned process,
or a combination of the two.

Intuition
Intuition is using your ‘gut feeling’ about possible courses of action.
Although people talk about it as if it was a magical ‘sense’, intuition is actually a combination of
past experience and your personal values. It is worth taking your intuition into account, because
it reflects your learning about life. It is, however, not always based on reality, only your
perceptions, many of which may have started in childhood and may not be very mature as a
result.
It is therefore worth examining your gut feeling closely, especially if you have a very strong
feeling against a particular course of action, to see if you can work out why, and whether the
feeling is justified.

Reasoning
Reasoning is using the facts and figures in front of you to make decisions.
Reasoning has its roots in the here-and-now, and in facts. It can, however, ignore emotional
aspects to the decision, and in particular, issues from the past that may affect the way that the
decision is implemented.
Intuition is a perfectly acceptable means of making a decision, although it is generally more
appropriate when the decision is of a simple nature or needs to be made quickly.
More complicated decisions tend to require a more formal, structured approach, usually
involving both intuition and reasoning. It is important to be wary of impulsive reactions to a
situation.
Effective Decision-Making

Decisions need to be capable of being implemented, whether on a personal or organizational

level. You do, therefore, need to be committed to the decision personally, and be able to
persuade others of its merits.
An effective decision-making process, therefore, needs to ensure that you are able to do so.

What Can Prevent Effective Decision-Making?

There are a number of problems that can prevent effective decision-making. These include:

1. Not Enough Information

If you do not have enough information, it can feel like you are making a decision without any
basis.
Take some time to gather the necessary data to inform your decision, even if the timescale is
very tight. If necessary, prioritize your information-gathering by identifying which information
will be most important to you.

2. Too Much Information

The opposite problem, but one that is seen surprisingly often: having so much conflicting
information that it is impossible to see ‘the wood for the trees’.
This is sometimes called analysis paralysis, and is also used as a tactic to delay organizational
decision-making, with those involved demanding ever more information before they can decide.
This problem can often be resolved by getting everyone together to decide what information is
really important and why, and by setting a clear timescale for decision-making, including an
information-gathering stage.
 3. Too Many People
Making decisions by committee is difficult. Everyone has their own views, and their own values.
And while it’s important to know what these views are, and why and how they are important, it
may be essential for one person to take responsibility for making a decision. Sometimes, any
decision is better than none.

4. Vested Interests
Decision-making processes often founder under the weight of vested interests. These vested
interests are often not overtly expressed, but may be a crucial blockage. Because they are not
overtly expressed, it is hard to identify them clearly, and therefore address them, but it can
sometimes be possible to do so by exploring them with someone outside the process, but in a
similar position.
It can also help to explore the rational/intuitive aspects with all stakeholders, usually with an
external facilitator to support the process.
5. Emotional Attachments
People are often very attached to the status quo. Decisions tend to involve the prospect of
change, which many people find difficult.

6. No Emotional Attachment
Sometimes it’s difficult to make a decision because you just don’t care one way or the other. In
this case, a structured decision-making process can often help by identifying some very real pros
and cons of particular actions, that perhaps you hadn’t thought about before.
Many of these issues can be overcome by using a structured decision-making process. This will
help to:

 Reduce more complicated decisions down to simpler steps;

 See how any decisions are arrived at; and
 Plan decision making to meet deadlines.
Many different techniques of decision making have been developed, ranging from simple rules
of thumb, to extremely complex procedures.  The method used depends on the nature of the
decision to be made and how complex it is.

Effective Decision Making – A Framework

The important aspect is to go through all the stages in turn, even if only to decide that they
are not relevant for the current situation.
 1. Listing Possible Solutions/Options
To come up with a list of all the possible solutions and/or options available it is usually
appropriate to use a group (or individual) problem-solving process. This process could include
brainstorming or some other 'idea-generating' process.

This stage is important to the overall decision making processes as a decision will be made from
a selection of fixed choices.
Always remember to consider the possibility of not making a decision or doing nothing and be
aware that both options are actually potential solutions in themselves.

2. Setting a Time Scale and Deciding Who is Responsible for the Decision
In deciding how much time to make available for the decision-making process, it helps to
consider the following:

 How much time is available to spend on this decision?

 Is there a deadline for making a decision and what are the consequences of missing this
deadline?
 Is there an advantage in making a quick decision?
 How important is it to make a decision?  How important is it that the decision is right?
 Will spending more time improve the quality of the decision?
Remember that sometimes a quick decision is more important than ‘the right’ decision,
and that at other times, the reverse is true.

Responsibility for the Decision

Before making a decision, you need to be clear who is going to take responsibility for it.
Remember that it is not always those making the decision who have to assume responsibility for
it. Is it an individual, a group or an organization?
This is a key question because the degree to which responsibility for a decision is shared can
greatly influence how much risk people are willing to take.
If the decision-making is for work, then it is helpful to consider the structure of the organization.

 Is the individual responsible for their decisions or does the organization hold ultimate
responsibility?
 Who has to carry out the course of action decided?
 Who will it affect if something goes wrong? 
 Are you willing to take responsibility for a mistake?
Finally, you need to know who can actually make the decision. When helping a friend, colleague
or client to reach a decision, in most circumstances the final decision and responsibility will be
taken by them.
 Whenever possible, and if it is not obvious, it is better to agree formally who is responsible
for a decision.
This idea of responsibility also highlights the need to keep a record of how any decision was
made, what information it was based on and who was involved.  Enough information needs to be
kept to justify that decision in the future so that, if something does go wrong, it is possible to
show that your decision was reasonable in the circumstance and given the knowledge you held at
the time.

3. Information Gathering
Before making a decision, all relevant information needs to be gathered.
If there is inadequate or out-dated information, then it is more likely that a wrong decision might
be made. If there is a lot of irrelevant information, the decision will be difficult to make, and it
will be easier to become distracted by unnecessary factors.
You therefore need up-to-date, accurate information on which to make decisions.
However, the amount of time spent on information-gathering has to be weighed against how
much you are willing to risk making the wrong decision. In a group situation, such as at work, it
may be appropriate for different people to research different aspects of the information required.
For example, different people might be allocated to concentrate their research on costs, facilities,
availability, and so on.

4. Weighing up the Risks Involved

One key question is how much risk should be taken in making the decision? Generally, the
amount of risk an individual is willing to take depends on:

 The seriousness of the consequences of taking the wrong decision.

 The benefits of making the right decision.
 Not only how bad the worst outcome might be, but also how likely that outcome is to
happen.
It is also useful to consider what the risk of the worst possible outcome occurring might be, and
to decide if the risk is acceptable.  The choice can be between going ‘all out for success’ or
taking a safe decision.
.

5. Deciding on Values
Everybody has their own unique set of values: what they believe to be important. The decisions
that you make will, ultimately, be based on your values. That means that the decision that is right
for you may not be right for someone else.
If the responsibility for a decision is shared, it is therefore possible that one person might
not have the same values as the others.
In such cases, it is important to obtain a consensus as to which values are to be given the most
weight. It is important that the values on which a decision is made are understood because they
will have a strong influence on the final choice.

6. Weighing up the Pros and Cons

It is possible to compare different solutions and options by considering the possible advantages
and disadvantages of each.
Some organizations have a formal process that is required at this stage, including a financial as
One good way to do this is to use a 'balance sheet', weighing up the pros and cons (benefits and
costs) associated with that solution. Try to consider each aspect of the situation in turn, and
identify both good and bad.
Having listed the pros and cons, it may be possible to immediately decide which option is best.
However, it may also be useful to rate each of the pros and cons on a simple 1 to 10 scale (with
10 - most important to 1 - least important).
In scoring each of the pros and cons it helps to take into account how important each item on the
list is in meeting the agreed values. This balance sheet approach allows this to be taken into
account, and presents it in a clear and straightforward manner.

7. Making the Decision

Finally, it’s time to actually make the decision!
Your information-gathering should have provided sufficient data on which to base a decision,
and you now know the advantages and disadvantages of each option.
You may get to this stage, and have a clear ‘winner’ but still feel uncomfortable. If that is the
case, don’t be afraid to revisit the process. You may not have listed all the pros and cons, or you
may have placed an unsuitable weighting on one factor.
Your intuition or ‘gut feeling’ is a strong indicator of whether the decision is right for you and
fits with your values.

If possible, it is best to allow time to reflect on a decision once it has been reached.  It is
preferable to sleep on it before announcing it to others. Once a decision is made public, it is very
difficult to change.
For important decisions it is worth always keeping a record of the steps you followed in the
decision-making process. That way, if you are ever criticized for making a bad decision you can
justify your thoughts based on the information and processes you used at the time. Furthermore,
by keeping a record and engaging with the decision-making process, you will be strengthening
your understanding of how it works, which can make future decisions easier to manage.

Having Made the Decision...

Finally, and perhaps most importantly, once you have made a decision, don’t waste your
time thinking about ‘what ifs’. If something does go wrong, and you need to revisit the
decision, then do. But otherwise, accept the decision and move on.

Conclusion
Remember, though, that no technique can substitute for good judgement and clear thinking. All
decision-making involves individual judgement, and systematic techniques are merely there to
assist those judgements.