People that struggle with decision-making generally fall into two camps. The first is those that make decisions based solely on what feels good in the moment or satisfies their temporary emotions. The others are those that never actually make a decision. This short lesson in decision making will help you make good decisions faster with less stress.
I strongly suggest you break out the old-school pen and paper for this exercise. It makes the decision more visceral and real.
Step 1: Define Your Decision
Before you can even have a hope of making a good decision, you must clearly state what you need to decide. Use an action verb, an object, and a purpose. This gives your decision clarity and direction.
Examples:
“To buy a new car so that I can drive to work.”
“To spend money on marketing so that more clients learn about my services.”
Knowing exactly what you are deciding and why helps avoid frustration. It stops you from going in circles and is possibly the most important step in the decision making process.
Step 2: Identify Must-Haves and Wants
Next, you need some clarity on what are your must-haves and what are actually just wants. Must-haves are things you absolutely need. Wants are things you would like to have but can live without.
Must-Haves Examples:
“A small car so it fits in my garage.”
“Clear information so clients know what to expect.”
Wants Examples:
“I want a blue car.”
“I want to spend less than $15,000.”
Rank your wants from 1 to 10. Ten is the most important. One is the least important. This helps you know what matters most to you.
Step 3: Create and Compare Options
Come up with at least three choices. This way, you don’t stick to the first idea you think of. Comparing different options helps you make a better decision.
Be aware of availability bias. This is when a recent or high-profile example influences your choice too much. Advertisers use this to sway your decisions. For example, people might choose to drive instead of flying after hearing about a plane crash. But driving is often more dangerous than flying.
Step 4: Pick the Best Choice
Choose the best option by checking if it meets all your must-haves. Then, see how many wants it fulfills. Use a simple chart to keep track. The option with the highest score is your best choice.
Make It Work for You
By following these steps, you can make smart decisions in your life and business. After deciding, you’ll need to share your decision with your team. We will cover how to do this in another post.
Reflect and Improve
Think about how well this process works for you. How can you use these steps to improve your decision-making? Practice will help you get better at it.
Examples and Stories
Let’s look at some stories to see these steps in action.
Example 1: Choosing a Family Car
Jane needs a new family car. She follows these steps:
Define: “To buy a family car so that we can travel comfortably.”
Must-Haves:
“Big enough for five people.”
“Safe and reliable.”
Wants:
“Prefer a red car.”
“Want to spend less than $20,000.”
Jane finds three options. She checks each one against her must-haves and wants. She uses a chart to score them. The car that fits all her must-haves and most of her want is her best choice.
Example 2: Marketing for a Small Business
Tom owns a small business. He needs a marketing plan. He follows these steps:
Define: “To create a marketing plan so that more people know about my business.”
Must-Haves:
“Clear message.”
“Reach at least 1,000 people.”
Wants:
“Use social media.”
“Spend less than $500.”
Tom comes up with three plans. He checks each one against his must-haves and wants. He scores them on a chart. The plan that fits all his must-haves and most of his wants is the best.
Eliminating Analysis Paralysis
Because you have narrowed down your list of options for your decision and clearly defined them, you should find it a lot easier to pick one. My advice for you, is that after you have gone through this process, just pick one of your viable options. I have in most cases, when it comes to that final choice between two paths in life, you won’t know which one was the right decision until much later.
Do your analysis, generate a couple good options, then pick one. The worst thing you can do is make no decision.
Benefits of This Process
Using these steps has many benefits. You save time by knowing exactly what you need. You avoid mistakes by comparing different options. You make better choices by focusing on what’s important.
Tips for Success:
Write down your decision statement. It helps keep you focused.
Be honest about your must-haves and wants. This makes your decision stronger.
Don’t rush. Take your time to find and compare options.
Common Mistakes to Avoid:
- Skipping steps: Follow all the steps for the best results.
- Not being clear: Make sure your decision statement is clear and specific.
- Ignoring wants: Even though wants are not must-haves, they still matter. Rank them honestly.
Practice Makes Perfect
The more you use this process, the better you’ll get at making decisions. Start with small decisions to practice. Soon, you’ll be ready to tackle bigger ones.
Final Thoughts
Decision-making doesn’t have to be hard. By following these simple steps, you can make smart choices every time. Whether it’s for your personal life or business, this process will help you succeed. Try it today and see the difference it makes!