43 Folders

43 Folders feed subscription icon - Shiny! Drowning in email? Try Inbox Zero to learn sane tips for dealing with high-volume email. And don’t miss the free Inbox Zero video. »

Login or register

Register for free on 43 Folders to comment on articles, post to our forum, customize your visits, and much more. Current users can login now.

Eight tools for streamlined decision-making

Effective Decision Making [Mind Tools]

Like so many things, smart decision-making can benefit from the addition of structure, focus, and a bit of metaphor. While imperfect in their own ways, the kinds of tools that support this mental corralling can help tremendously in quieting the chaos, surveying the available options, and then collecting and evaluating the information you need to choose the best course of action.

The always-informative Mind Tools shares eight of the most popular and reliable tools for decision making.

  1. Pareto Analysis - Often better known as “The 80/20 Rule,” Pareto helps you locate where you can derive the greatest benefit by expending the least relative effort (or cost or resources or what have you). In the go-go dotcom days, the bizdev guys used to call this “low-hanging fruit.” Ew. (Seriously, though, once you learn about the 80/20 rule, you start seeing instances of it everywhere).
  2. Paired Comparison - Compose a table that pits each option directly against each other option, mano a mano, cage-match-style, and weighting each for relative importance. It’s a fast and bloodless way to plow through what would otherwise be a huge mess to evaluate.
  3. Grid Analysis - Evaluate a larger set of options based on numerous criteria, then weight the importance of each criterion to derive the best choice. Given the complexity and arithmetic required, this one really benefits from using good old Excel.
  4. Decision Trees - I’ve never personally used this, but it looks kind of promising. Basically you build a set of “what-ifs” based on a tree of possible options, assigning the estimated value, cost, or savings associated with each choice.
  5. PMI - One of my favorites that I actually use quite a lot. List all the pluses, minuses, and implications behind any decision (I’ve also seen this “I” column referred to interesting or intriguing data points). Then assign a + or - numerical value to each based on the positive or negative impact. Tally up the columns, and your better option emerges. Takes the emotion and guesswork out of complex decisions, with the side benefit of forcing a brain dump. By the way, although you can totally do this in Excel (or on paper), I made a template for OmniOutliner that works like a champ for more lengthy or detailed option sets.
  6. Force Field - I’ve never completely gotten this one, but I know some folks swear by it. You identify all the forces for and against a theoretical change, weighted for amount of force exerted by each “side.” I suppose I could see this being useful for touchy political decisions or any time a well-established more is going to be challenged. Might help in mitigating risk and knowing where best to allocate your resources and influence.
  7. Six Thinking Hats - Recently added de Bono’s book on this subject to the left rail (See it? Over there by all my hippie meditation books?). It’s a method for seeing an issue from all perspectives by forcing yourself (or more often your team) to—one at a time—adopt different “thinking hats” that reflect opposing and orthogonal points of view (analytical, positive, negative, creative, etc.). I’d be curious to hear how this has worked for folks in real-world projects. Seems like it could get tedious in the wrong hands.
  8. Cost/Benefit - This is an evergreen you’ve probably used a dozen or more times; estimate the costs and the benefits and decide if the delta is worth the hassle. As ever, be sure to account for all the costs of a change, including the meta stuff.

Got a favorite decision-making tool that’s worked for you in the real world? Share your stories and examples.

Technorati Tags: , , ,


Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Louise's picture

Feel free to laugh, but...

Feel free to laugh, but my parents taught me this when I was a kid and I still use it for choices between two competing next actions: Flip a coin. Not because you should let a coin run your life, but because your feelings when you see the result will tell you which you really want to do. For more complex situations, I’ve been known to break out the I Ching in the same spirit — not to receive marching orders, but to discern what my own inner marching orders really are. And I’m not a New Age nut, by the way. And I had to write in to thank you for making my life better, simpler, calmer, and more orderly. I read your great email tips in the Mac newsletter, thus found this site and then GTD — I’ve been doing it a month and feel better than I have in my life, truly. With a recent but long overdue diagnosis of ADD, I feel as if you threw me a lifeline just when I needed it. Thanks!

Merlin Mann's picture

Unofficial new tagline: “43 Folders:...

Unofficial new tagline: “43 Folders: I am not a New Age Nut.

That’s a terrific trick and it totally works, Louise. The second you feel that twinge you realize you knew your answer all along. Ditto for I Ching and Oblique Strategies. I love an oracle that reminds me what I already know. :)

stephen judd's picture

The coin equivalent with these...

The coin equivalent with these strategies is when you find yourself tweaking the inputs to make the answer come out right…

Lea's picture

I still like KT (Kepner-Tregoe...

I still like KT (Kepner-Tregoe IIRC) analysis for these sorts of things. List the factors you want to weigh the decision on. Assign an importance weighting to each factor For each choice, give a factor to each possible choice on how well the factor supports it. Cross multiply and the highest score is the winner. Has helped me with several decisions over the years.

James E. Robinson, III's picture

Another vote for the good-ole...

Another vote for the good-ole coin toss.

For more complex tasks, consider the Magic 8-Ball.

Marc Orchant's picture

Merlin - de Bono's Six...

Merlin - de Bono’s Six Thinking Hats is a powerful technique when used properly. You’re right - it can tedious if misapplied - say to a decision about where to have lunch ;^)

But for big issues, projects, and other group discussion topics it really does lead to better group-think, reduced tension and emotionalism,and more productive interactions. In my company, a side benefit of having trained the entire company in the method is that it has become part of our lexicon. It’s not uncommon to hear someone say in conversation, “I’m just green-hatting here,” (implying creative brainstorming mode) or “This is red hat,” (denoting a purely emotional, visceral response to what was just said without the need to justify or support the impending statement).

We even do it in e-mail to mark off points being made using HTML-style tags as in:

What if we were to delay the release until we hit a certain threshold of bug reports fixed?

It’s pretty powerful stuff - especially if you’re part of an organization that includes smart, opinionated people. It cuts down on the noise level very effectively.

nesz's picture

bayesian? or AI tools? how to...

bayesian? or AI tools?

how to create this in php…

Reality Bites's picture

I've used the PMI method...

I’ve used the PMI method before with great results. I almost made a big mistake by not carefully weighing my decision. Even though the tallies for negative and positives were close, the best decision became apparent. I recommend it for all complex life changing decisions, like: “do I take the job or stay with the family? “

Chris Lindgren's picture

TOC Theory of Constraints....

TOC Theory of Constraints. Start with “The Goal” http://www.directtextbook.com/prices/0884271781

Prepare to think

Martin Geddes's picture

I wrote up about decision...

I wrote up about decision science tools at http://www.telepocalypse.net/archives/000224.html.

Dave Gray's picture

We use force field analysis...

We use force field analysis all the time in XPLANE consulting engagements.

What I like about force fields is that it can help you ensure that you are solving the right problem in the first place.

A force field analysis clearly places the objective (And nothing else) front and center. I like to ask these high-level questions:

“What forces work in favor of achieving this goal?”

“What forces work against it?”

I find that often the answers can be unexpected — for example, we can uncover industry-wide trends or internal cultural issues that previously had not surfaced — and force us to take a step back and re-think the problem.

I think the force field is a fantastic tool to use with a group, during the earliest stages of the problem-solving process.

Dave Gray's picture

Come to think of it,...

Come to think of it, there’s another tool I’ve used a lot recently, called forced ranking. It sounds simple — and it is — but like a lot of simple things it can be highly effective.

It works best with a reasonably small number of items. For example, if you want to know where to focus your energy as an executive, you might ask someone to “force-rank” their experience with your company:

“Take your experience with our sales team, consulting team, creative team and project manager, and rank them from one to four based on the quality of your customer experience.”

Following that up with questions like “Why did you rate that highest/lowest?” can often open up a rich dialogue you would not have otherwise. Sometimes they kind of “think out loud,” getting you an insight into their evaluation process.

This gets you away from stock answers like “Everything was great” (which are flattering but not necessarily useful), and moves the conversation towards things that can be more easily translated into action.

Zak's picture

Put me up there with...

Put me up there with the people who think that, for any given decision, you come to an intuitive conclusion almost immediately. I’ve found that following through on these snap decisions has almost always been the correct course of action.

Chris Kenyon's picture

A technique that I use...

A technique that I use when asked for an opinion by my partner is to select whichever option comes first alphabetically. It is applied to any request for an opinion that I do not have a strong view on.

Like the coin method it works on the premise that if you really can’t make a choice it’s because you don’t see a huge difference. It works a treat and when she is fed up of avocado, absolut vodka and bruschetta we use the reverse alphabetical model!

Michael Rienstra's picture

Coin flips: A much faster...

Coin flips: A much faster way to figure out the decision you’ve already made! Er, faster than those more involved methods. And if you buy the theory that — most of the time — you’ll just fudge the results of those other methods to agree with what you’ve already decided.

All of this reminds me of Phillip J. Eby’s post on the ‘The Multiple Self’. I’ve just started reading two of the books others mention in the comments on that post — Strangers to Ourselves: Discovering the Adaptive Unconscious and Sources of Power: How People Make Decisions. I think the Amazon reviewers can give you a better summary of those books than I, particularly since I haven’t finished reading them yet.

gscherl's picture

Would be great to get...

Would be great to get a copy of this OmniOutliner template for the PMI stuff. Is there a chance to get it? Thanks !

David's picture

Although not as succinct as...

Although not as succinct as the single topics above, I have found the methods useful in the book “Smart Choices : A Practical Guide to Making Better Decisions” by Hammond, Keeney, and Raiffa (http://www.amazon.com/exec/obidos/tg/detail/-/0767908864/qid=1128426901/sr=8-3/ref=pdbbs3/102-9177548-7836968?v=glance&s=books&n=507846). They have a very systematic approach to framing and helping make decisions properly (you can apply this in GTD by having every Project answer the key points in the method). They summarize their eight-step the method with the acronym PrOACT:

Problem: clarify and decide on what’s the scope and scale of the real problem at issue Objectives: what are the objectives you want to attain with the decision Alternative: create a meaninful set of alternatives Consequences: what are the consequences of the each of the alternative decisions Tradeoffs: what tradeoffs between decision alternatives + three other related issues Uncertainty: figure out how uncertain outcomes, alternatives, and consequences are Risk Tolerance: your decisions will be different depending on whether you are risk-averse or risk-seeking; think investing in bonds vs. stocks vs. hedge funds. Linked Decisions: how does taking a particular decision affect other decisions one might have to make (outside the scope of this decision).

There is an extensive review on the Amazon page that gives more detail and discussion.

People do some or all of these things intuitively, but few people do them systematically, explicitly, and regularly.

It’s a very good framework for decision-making. The book is really cleanly, clearly written. They are either great writers or had great editors. There is no fluff there.

It’s by some of the same authors of “Getting To Yes”, a great introduction to negotiation. Also very clearly, sparely written. You will never forget the acronym BATNA afterwards…

About Merlin Mann

Merlin Mann's picture

Bio

Merlin Mann is an independent writer, speaker, and broadcaster. He’s best known for being the guy who started the website you’re reading right now. He lives in San Francisco, does lots of public speaking, and helps make cool things like You Look Nice Today. Also? He looks like this, answers questions, and has something like a life.

 
EXPLORE 43Folders THE GOOD STUFF

An Oblique Strategy:
Distorting time


STAY IN THE LOOP:

Subscribe with Google Reader

Subscribe on Netvibes

Add to Technorati Favorites

Subscribe on Pageflakes

Add RSS feed

The Podcast Feed

Inbox Zero

The original 43 Folders series looking at the skills, tools, and attitude needed to empty your email inbox — and then keep it that way. Don’t miss the free video of Merlin’s Inbox Zero presentation.

Making Time

3-part series on attention management for artists and makers. Read Bad Correspondence, The Job You Think You Have, and One Clear Line.