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4 6023604981674805250
Make effective
decisions
Make effective
decisions
How to weigh up the options and
make the right choice
A CIP record for this book is available from the British Library.
eISBN-13: 978-1-4081-0184-1
This book is produced using paper that is made from wood grown in
managed, sustainable forests. It is natural, renewable and
recyclable. The logging and manufacturing processes conform to
the environmental regulations of the country of origin.
Contents
What sort of decision-maker are you? vi
7 Avoiding procrastination 58
Index 83
vi
a = 1, b = 2, c = 3
vii
viii
1
Getting to the heart of
an issue
Being able to make good decisions is an
essential workplace skill. Whatever your role,
there will be times when you need to get to
grips with an issue and decide on the best
course of action. If you need to make a
decision, your first step should be to analyse
the situation. These first three chapters will
help you to do just that, while the following
chapters look in more detail at decision-making
techniques.
TOP TIP
When we are under pressure, we often take a
‘sticking plaster’ approach to solving a
problem. However, this does nothing to
resolve the matter in the longer term. A
problem will recur over and over again until
we understand and resolve its cause.
To help you to trace the causes and chart the effects, ask the
following questions:
Why indeed . . .!
Common mistakes
✗ You don’t invest enough time in looking at a
problem
STEPS TO SUCCESS
✔ Think long-term. Partially solving a problem means that
it’s likely to come back to haunt you.
Useful links
Root cause analysis:
www.systems-thinking.org
Determine the root cause—the ‘5 whys’:
www.isixsigma.com
2
Looking at a problem from
different perspectives
As decisions usually have a knock-on effect for
other people, it’s crucial that decision makers
are aware of the wider picture.
10
TOP TIP
Very often, being familiar with a situation
results in our doing the same thing over and
over again. Sometimes it’s helpful to ask
someone fresh to the situation to look at the
problem. The innocent and obvious question
that leads to a creative solution may be the
one that you’ve missed because your
11
I White Hat: this is the ‘data hat’. The wearer should focus
on the available information and determine where the
gaps are. He or she should also look at the patterns and
trends inherent in a situation and build a future picture
from this analysis.
I Red Hat: this is the ‘intuitive hat’. It’s up to the wearer to
introduce feelings and instincts to the process, both
while arriving at a decision and in considering how others
will react to that decision.
12
13
TOP TIP
It’s important to set your thinking in
the context of the issue you are trying
to resolve. To work out what is relevant
and what is not, look forward and anticipate
the potential outcome of your actions.
If by taking a different perspective a
longer-term solution can be found,
then it is probably a good one
to implement.
14
Common mistakes
✗ You assume that those around you have
the same attitudes, values, and beliefs as
yourself
15
STEPS TO SUCCESS
✔ Discovering a new approach to old problems can
revitalise your working life.
Useful links
MindTools.com:
www.mindtools.com
The Mind Gym:
www.themindgym.com
17
3
Asking the right questions
Asking questions is something we learn to
do as children. When we’re learning about
the world, we are curious, interested, and
hungry for information. However, when young
we are often discouraged from asking questions
by irritable retorts from adults who don’t
have time to explain. When we go to school
we’re encouraged to provide the ‘right’
answers, and when we’re teenagers we
always seem to be asking the ‘wrong’
questions – questions to which the answer is
often ‘No!’ So we enter our adult years without
having perfected this art which can help ‘open
up’ the world to us.
18
✔ Closed questions
Closed questions prompt an ‘either/or’ answer, for
example ‘Yes/No’, ‘Three/Four’, ‘Green/Blue’. These
are unambiguous answers that provide information. They
do not open up conversations or lead to a discussion,
but they are useful for clarifying a situation or to confirm
understanding of a more in-depth response to a
question.
TOP TIP
If you come into contact with someone
who ‘waffles’, take the lead and ask a series
of closed questions to clarify the points
that they are trying to make. You could
open with ‘Can I just check that
I’ve understood the key points?’
and then ask some clarifying
closed questions.
19
✔ Open questions
Open questions lead to an exploration of the other
person’s views and opinions. They bring in a great deal of
information and are often used in exploratory conversations
and philosophical discussions. Open questions often
require imaginative responses and may be ‘left in the air’,
either for dramatic effect or to stimulate deeper
consideration.
I ‘Who . . .?’
I ‘What . . .?’
I ‘Where . . .?’
I ‘When . . .?’
I ‘Why . . .?’
I ‘How . . .?’
✔ Factual questions
Factual questions are asked when information is needed on
a topic where there is a consensus of opinion or belief; when
meaning is shared by a wider community—of scientists, for
instance.
20
TOP TIP
If you don’t know who to ask for specific
kinds of information, find someone who
you think has a wide network and a
clear understanding of the situation and
ask for their opinion. If you always end
such conversations by asking, ‘Who
else should I be talking to?’, you’ll
gain access to a wider network of
informed people.
✔ Naïve questions
Naïve or childlike questions are often asked to bring the core
of an issue to the surface. They are often ignored because
they can disturb the equilibrium. However, the more they are
ignored, the greater the collusion of ignorance; it’s important
to appreciate how useful they can be. Typically, the naïve
questioner asks ‘Why?’ followed by another ‘Why?’ and yet
another ‘Why?’!
TOP TIP
If someone starts giving you unnecessary
information when they are answering one
of your questions, you may need to be
more assertive. Find the chance to
interject with a comment like: ‘That’s
very interesting, but I wonder if I could
direct you back to . . .’
21
✔ Provocative questions
These questions can be used to stir up a debate. An
example of a provocative question is ‘So you really think
child labour is OK?’ These types of question are generally
values-based, and seek a closed answer on one level but
warrant debate on another. We may see these questions in
political debate when someone wants to reveal a hidden
motivation for a certain behaviour or decision. Provocative
questions should be used carefully because they often result
in heated debate, if not an all-out argument!
✔ Leading questions
Leading questions imply a certain answer before the
respondent has given it – for instance, ‘When did you start
embezzling from your company?’ We often see leading
questions used in television interviews or in court hearings
where witnesses are being examined by the prosecution.
22
✔ Clarifying questions
These types of question are used to check that you have
understood someone’s response properly. You can ask
questions such as ‘Did you mean. . .?’ and follow up with your
interpretation of what they’ve said. If you’d like to understand
their motivations for giving a particular response, you could
say, ‘Would you explain how you reached this conclusion?’
TOP TIP
Often, something that someone says in a
meeting triggers a series of thoughts that
distract us. If this happens to you, you could
ask for a summary of the points that have
been made so far, in order to confirm your
understanding. Or you could simply admit that
a point was so interesting that you followed it
in your mind and lost the thread of the
discussion! Most people can identify with this
and are happy to go back over the key points.
23
24
Common mistakes
✗ You fudge your question and get an
uninformative response
25
✗ You argue
This can lead you into deep water. It’s better to look
foolish for a few minutes than to make a crass mistake
because you didn’t dare ask the question. There will
probably be other people who are grateful that you’ve
asked.
STEPS TO SUCCESS
✔ Don’t be afraid to ask questions. It’s far better to take the
time to understand the situation than to muddle through
and risk making the wrong decision.
✔ Make sure you pick the right time to ask your questions.
Is the context right? Is the person you need to speak to
busy or irritable? If so, it may be worth trying them at
another time—if your deadline allows.
Useful links
Steve Pavlina, Personal Development for Smart People:
www.stevepavlina.com/blog/2006/02/asking-the-right-
questions
American Speech-Language-Hearing Association, ‘Asking the
Right Questions in the Right Ways’:
www.asha.org/about/publications/leader-online/
archives/2003/q2/f030429b.htm
27
4
Using proven problem-
solving techniques
We all possess problem-solving skills to some
degree or another. However, as our experience
builds, our problem-solving skills tend to become
less imaginative and we tend to resort to default
solutions. Using favoured tried and tested
approaches is all very well, but sometimes the
context changes, old solutions become
redundant, and new options become available.
To give yourself the best chance of making
a good decision, it’s important to keep
re-examining your circumstances and evolving
new solutions to potential problems.
28
TOP TIP
Weaning ourselves off our usual habits is
difficult, but trial and error is as good a way as
any to break our habitual pattern. By removing
yourself from your comfort zone you may well
surprise yourself with the innovative
solutions you come up with.
29
30
TOP TIP
It might be helpful to have someone in your
brainstorming group who knows nothing
about the problem or situation. A bit of
distance can be a huge help.
31
32
Stay in role for the duration of the exercise and resist the
temptation to criticise their suggestions. Instead, if they
suggest something that you think won’t work, ask them,
‘What needs to be done to make this succeed?’ Or ‘What
alternative ideas can you come up with?’
You could also think about the nature of the problem and
consider whether it might occur in a similar form but in a
different context. By asking yourself the question ‘What else
could this problem look like?’ you may find that you venture
into new territory where a solution is equally applicable to
your situation.
TOP TIP
It’s quite possible to streamline your
chosen approach so that you find a
good solution without taking endless time
over it. Be clear about your time and
resource limitations and find an
approach that works well for you.
You’ll find that it pays dividends as
you gain more experience.
34
TOP TIP
If you’ve seen most of the problems before,
your experience will be very useful in
appraising the results of decisions made
using some of the proven techniques. But
don’t get stuck in a rut. Most sectors
35
Common mistakes
✗ You don’t put boundaries around your problem-
solving activities
36
STEPS TO SUCCESS
✔ Re-evaluate the situation regularly and assess whether
your favoured solutions are still valid.
37
Useful links
Basic guidelines for problem solving and decision making:
www.managementhelp.org/prsn_prd/prb_bsc.htm
MindTools:
www.mindtools.com/pages/main/newMN_TMC.htm
38
5
Making good decisions
under pressure
When we’re called on to make decisions under
pressure, we often worry that we’ll make the
wrong choice, and that it will come back to haunt
us. Most of us prefer to have enough time to
analyse the situation and consider the
alternatives. When time is tight, however, we
don’t have this luxury.
39
TOP TIP
If you tend to panic when put under
pressure to make a decision, it’s probably
because you’re running through all the
disaster scenarios that may arise if you
make the wrong decision. This clouds
your thinking and adds yet more pressure.
Focus on the relevant information, and put
the rest to the back of your mind. Should
you wish, you can mull it over later—but
for now you need to prioritise and focus
on the key factors.
40
41
3 Start with the most critical risk and think through the
different ways in which you could address it. By going
through this exercise before the risk occurs, you may be
able to devise a contingency plan, or even eliminate the
risk altogether.
42
TOP TIP
There are times when your ‘gut instinct’
serves you well, especially if you have
experience of dealing with similar
situations—but you need to balance this by
considering any altered circumstances.
Take time to consider whether anything has
changed or any new information has arisen
before deciding to follow your instincts.
TOP TIP
If you’re put under pressure to make fast
decisions that meet others’ agendas when
you don’t see the urgency to make a decision
yourself, play for time and explore the
relevant factors more fully. In these cases,
43
44
Common mistakes
✗ You become overwhelmed by the weight of the
responsibility
45
Don’t hold back for the sake of your pride: ask someone
who’s more experienced than you and get them to talk
you through the rationale for the recommendations they
make. This will help you to learn the ropes so that you are
able to use your new experience next time.
STEPS TO SUCCESS
✔ Think ahead and rehearse possible scenarios before
they happen.
46
Useful links
MindTools.com, ‘How to make better decisions’:
www.mindtools.com/pages/main/newMN_TED.htm
MindTools.com, ‘Making good decisions under pressure’:
www.mindtools.com/pages/article/newTED_99.htm
Free online tools to help decision making under pressure:
www.rfp-templates.com/search/for/Free-Online-Tools-
to-Help-Decision-Making-Under-Pressure.html
47
6
Conducting a cost/benefit
analysis
Whether you are making a major decision or
pitching for a major project, a cost/benefit
analysis could be invaluable. When you have
spent time and effort coming up with the idea for
a new project or initiative, before you decide
whether to take it to the next stage it’s important
to establish whether or not it is viable. In a cost/
benefit analysis every aspect of the project is
given a financial value, the costs and benefits are
compared, and it’s generally found to be viable if
the benefits outweigh the costs.
48
Advantages
49
Disadvantages
TOP TIP
Many high-profile projects have proven to
cost double, triple, or quadruple the amount
used in the cost/benefit calculation. Bearing
in mind the potential for error, you should
always allow for higher costs than expected.
50
51
TOP TIP
There are some occasions when it would
be politically unacceptable not to undertake
a particular project or programme. In
these instances, a cost/benefit analysis may
serve to ensure that the project is run as
efficiently as possible, with careful cost
control.
52
TOP TIP
If you’re having difficulty putting a value on a
non-tangible aspect of a project or initiative,
try looking at what the cost would be if you
didn’t implement it. This gives you an idea of
its worth.
53
TOP TIP
If the costs outweigh the benefits but you still
feel that the project is vital to the business,
calculating the NPV could be extremely useful
for you. By looking at the long-term effects of
the project you may be able to show it in a
more favourable financial light.
TOP TIP
Try to find similar projects that have been
approved in your organisation and look at
what assumptions have been made. You may
also find something that you can use in your
own analysis that will help weight your
argument favourably. It’s much harder to
reject a project if the basis on which it has
been analysed is similar to that for one which
has already been accepted.
54
Common mistakes
✗ You manipulate the data
55
STEPS TO SUCCESS
✔ Whether you are making decisions based on someone
else’s cost/benefit analysis or doing one yourself,
double-check that nothing crucial has been missed out,
on either the cost side or the benefits side.
56
Useful links
Wikipedia:
http://en.wikipedia.org/wiki/Cost-benefit_analysis
MindTools.com:
www.mindtools.com/pages/article/newTED_08.htm
An introduction to cost/benefit analysis:
www.sjsu.edu/faculty/watkins/cba.htm
57
7
Avoiding procrastination
It’s no use having the tools if you don’t use them!
Procrastination in the workplace can result in
decisions not being made and actions not being
taken, and can cause a frustrating bottleneck
that disrupts the effectiveness of a team. As it
can be a significant barrier to progress, it’s
important that it’s recognised and dealt with as
soon as possible.
58
Avoiding procrastination
59
TOP TIP
If you find yourself carrying out activities that
don’t contribute to the achievement of your
goals, you may well be procrastinating. We
often distract ourselves with other things
when we don’t really want to get down to
something that is ‘too hard’, ‘too boring’,
or ‘too complicated’.
60
Avoiding procrastination
61
TOP TIP
It’s very difficult to make decisions when
you’re unsure where the boundaries to your
authority lie. If you feel that this is the cause
of your procrastination, clarify things with
your line manager. Ask for a meeting to
discuss this and take some examples to him
or her so that you can determine your
decision-making authority.
Analysing your project to-do list in this way may also enable
you to see which jobs are getting in the way. You can
eliminate or delegate them, to give you a chance to focus
your mind and get on with things.
62
Avoiding procrastination
TOP TIP
It’s very difficult to motivate someone to meet
your needs if they can’t see the
consequences of their behaviour. If your work
is being held up by a procrastinator, try talking
to him or her and explaining how their
procrastination affects your workload. You
could ask them if there’s anything you could
do to help them. Regular (gentle!) reminders
could help them to concentrate on what
needs to be done.
63
TOP TIP
One way of motivating yourself to stop
procrastinating is to be diligent about
following a proper decision-making (or action-
taking) process. You could help yourself to do
this by observing or being coached by
someone who is naturally proactive. See if
they use any techniques that could help you,
and adopt the ones that feel most natural.
64
Avoiding procrastination
Common mistakes
✗ You convince yourself that you’re more
efficient when you’re under pressure
65
STEPS TO SUCCESS
✔ Recognise procrastination in yourself and others and
address it quickly.
66
Avoiding procrastination
Useful links
Stop procrastinating now!:
www.stopprocrastinatingnow.com
Personal development for smart people, ‘Overcoming
Procrastination’:
www.stevepavlina.com/articles/overcoming-
procrastination.htm
Procrastination Help:
www.procrastinationhelp.com
67
8
Getting your message across
So you’ve made your decision. The next step is to
communicate that decision and its implications
to your colleagues. This can sometimes be
harder than making the decision in the first
place, as people tend to be averse to change—
especially if it means more work for them. If
you’re a new manager this may be even trickier,
as you may feel that you don’t yet have enough
authority, and may be unsure of the best
approach.
68
69
TOP TIP
If you worry that you’ve made a decision that
will make you appear inconsistent, the
chances are that you will do. In this situation,
honesty is the best policy. Address the
apparent inconsistency directly and tell
others how you’d feel if you saw someone else
displaying this type of contradictory
behaviour. This is a bold step, but it will make
clear that you understand what others may be
feeling, and will disarm potential critics.
Having cleared the air, you can follow up by
inviting others to tell you what they think,
which allows you in turn to explain your
reasoning rationally.
70
71
TOP TIP
Remember that what you say and how you
say it will be watched closely and discussed
afterwards, so be sure that your behaviour
supports your message. For example, you’ll
need to maintain eye contact with whoever
you’re speaking to as this emphasises the
sincerity of your message. Remember that
72
TOP TIP
Many people resist change at first, so don’t
expect too much too soon. Connect with
your team by showing you’re aware of how
they feel. For example, you could
acknowledge that they’ve been under too
much pressure lately, or that they’ve been
asked to perform tasks that the team was
73
74
Common mistakes
✗ You over-do it
75
76
STEPS TO SUCCESS
✔ Before telling people about your decision, plan your
communication carefully.
77
Useful links
1000ventures.com, ‘Connecting with People’:
www.1000ventures.com/business_guide/
crosscuttings/people_connecting.html
Mediate.com, ‘Barriers to Everyday Communication’:
www.mediate.com/articles/foster.cfm
Mindtools.com, ‘Improve Your Communication Skills’:
www.mindtools.com/page8.html
78
79
80
In this book the author examines how creative people think, and
looks at how to put their secrets to work for you. He has
researched hundreds of history’s greatest thinkers, from
Leonardo da Vinci to Pablo Picasso, and suggests ways of using
their techniques in order to become more creative in both our
work and personal lives.
81
82
Index
83
efficiency learning 39
cost/benefit analysis Linton, Ralph 11
52 listening to others 73–4
improving 1 logical reasoning 39
under pressure 46, long-term effects 53–4
65
egocentricity 15 misperception 73
motivation 4
facts, sorting out 43–4
factual questions 20–1 naïve questions 21
failure, fear of 59 net present value (NPV)
fire fighting 1, 3, 8 53–4
five whys 6–7
flowcharts 4
four Ps approach 13–14 open questions 20, 27
opportunity costs 53
opposing hat 13
goals, identifying 61, outcomes, agreeing on
66 30
green hat 13 over familiarity 11–12
gut instinct 43, 55 overheads 51
habits, changing 2, 29
panicking under pressure
homogenous teams 14
40
human issues 4
paralysis by analysis 9
participation, encouraging
ideas, collecting 31 30
implementation 4 patterns and themes 31
informative questions payback period 49
22 perfectionists 58, 59
intuitive hat 12 performance measurement
irrelevant facts 43–4, 6–7
46 perspectives
defining 51
knock-on effects 10, role play 32
28 value of different
11–12
language 71–2, 75, plans, creating 63–4
77 political sabotage 60
leading questions 22 positive hat 13
84
Index
85
86