The importance of a system in decision making
We have all heard of management information systems, decision-making processes, or data or intelligence driven decisions. There is no shortage of frameworks, strategies, steps. But how many of us, in our daily lives, actually have and use a system that allows us to make better decisions?
We are bombarded in our professional lives with choices, options, alternatives that we have to constantly evaluate. From what we propose or not to a client, to the employee who should or should not receive a raise, to the equity proposal that we should or should not accept, just to name a few. From big, complex decisions to simpler ones. But all with impact, with return, with expenditure of time, with risks and possible results.
The more we accept that, as human beings, we are invaded by emotions in response to events in our lives, the greater our need to accept that we have to equip ourselves with a decision-making process that allows us to leave emotions aside and make decisions with data and facts in hand.
In many cases, the time factor also plays a very important role in the decision-making process. Or the lack thereof. Decisions that require speed to reduce losses or impacts. Or so we think when we decide that “we have to act fast”.
Without a doubt, agility is essential, but haste is not always our companion. That is why it is very important that each one of us, or an organization, defines a coherent, constant and stable system in decision-making, bringing several benefits:
Reduces stress and anxiety when uncertain about the best decision to make.
Evaluates data and concrete facts, increasing the likelihood of a better decision being made.
It facilitates argumentation and justification in the decision.
Avoid repeating the same mistakes.
He seeks long-term solutions rather than “band-aids.”
Simpler in monitoring decisions and results.
There is no shortage of processes and methodologies that we can study and apply, but the important thing is to find our own system that necessarily fits into the context of the decision. There is no point in making a rational decision to make X when the company has a context in Y that makes X the least appealing alternative, with impacts on other levels that we are sometimes not considering. We need to evaluate more than the small circle of impact where we are.
Any decision has wider repercussions. That is why, in most systems, it is essential:
Investigate, listen and collect information from different sources.
Weigh the evidence in light of the context.
Evaluate alternatives, impacts, potential gains and losses.
List potential solutions and consequences.
Think about the next steps.
Act.
“The first rule is to keep an undisturbed spirit. The second is to look things in the face and know what they are.”
Wisdom that comes from afar but remains true. We can all absorb a little bit of Stoic philosophy and accept that logic, knowledge and reason are good advisors when we are faced with important decisions.
