Decisions, Decisions: Making Choices Like a Pro
How to improve your ability to make decisions.
I sit in my home office, conducting an interview with a candidate over Zoom. The interview is going well, there’s a good rapport, and they seem highly engaged. The conversation flows back and forward in a way that you always hope interviews will go. I think to myself, it’s time to get to the question about decisions, my favourite interview question;
“Can you give me an example of a time you were the decision-maker over something that multiple people couldn’t agree on?”
I love this question. It tells me so much about how the person approaches decisions. Answers come in many shapes and sizes, the data-led decision maker, the authoritarian decision maker, the scared-to-commit decision maker. Making decisions is a crucial part of being a successful individual in business. As a hiring manager, I want to know how you approach it.
As a manager, I am faced with countless decisions every day, from small operational choices to major strategic decisions that could impact the future of my teams. In this blog I’m going to detail the considerations that have helped me to make more effective decisions over my career;
1. What’s your tradeoff?
There’s always a tradeoff when it comes to making decisions. Understanding what tradeoff you’re making is critical in making the most effective decision.
The tradeoffs involved in decision-making can vary depending on the decision being made and the individual making it. Time, Cost, Risk, Opportunity, what are you biasing towards? For some decisions, the tradeoffs may be clear and straightforward, while for others, they may be more complex and difficult to assess.
One important tradeoff to consider when making decisions is the opportunity cost. Opportunity cost refers to the value of the next best alternative that is forgone when a choice is made. If you choose to go to a concert, the opportunity cost may be the movie you could have watched instead.
A colleague of mine recently asked me if I had “thought about the potential side effects” when I made a decision to send a potentially disruptive email. I had considered it, for a short time, but it was a conscious effort to bias towards speed. My tradeoff was improved speed, for a higher risk of disruption. This tradeoff can sometimes result in me being reckless, but it also improves my speed of execution. This is a tradeoff I’m willing to make.
Giving consideration to the tradeoffs involved in decision-making can help you make more informed choices. By weighing the costs and benefits of various options, you can make choices that align with your priorities.
2. Is your decision a one-way or a two-way door?
If you walk through this door, can you walk back through it with little to no consequences? If you make a decision, can you reverse it in the future?
One-way door decisions are significant choices that can have long-lasting effects and are often irreversible. Examples of one-way door decisions include getting married, having children, or buying a house. These decisions require careful consideration.
On the other hand, two-way door decisions are choices that can be reversed or changed relatively easily and without significant consequences. Examples of two-way door decisions include trying a new hobby or experimenting with a new diet. These decisions allow individuals to test the waters and make changes if necessary without committing to a permanent course of action.
If a decision truly is a one-way door, meaning that once it has been made it cannot be undone, then a strategy of care and attention is more appropriate. But a mistake I see people make regularly is that they treat a decision as if it is a one-way door, when in fact the door is two-way. They fear that once a decision is made it cannot be undone, when in reality it can be undone easily.
Understanding the difference between a one-way door and two-way door decisions is critical to being a more effective decision-maker. The key question to consider is, what if I need to change in the future? Considering how you could reverse a decision will help you to commit to a path forward in the event you want to reverse a decision made.
3. Fear of decision making
The fear of decision-making is extremely common and can be debilitating for individuals in both their personal and professional lives. The root cause may include fear of failure, fear of making the wrong decision, and fear of disappointing others. This anxiety can lead to procrastination and avoidance, which can further exacerbate the problem.
To overcome this, consider what’s the worst that could happen. If the consequences are severe, then it warrants a more thoughtful, data-led, peer-reviewed decision. But if the consequences are mild or negligible, then you can afford to take more risks in the pursuit of decision-making.
It can be helpful to break decisions down into smaller, more manageable tasks. Seeking advice from trusted friends, family members, or colleagues can also be helpful in making decisions without fear
“Decision is a sharp knife that cuts clean and straight; indecision, a dull one that hacks and tears and leaves ragged edges behind it.” — Gordon Graham
It’s possible to overcome the fear of decision-making and become more confident in making choices that align with your goals and values. Just liek any fear, face it head-on and you can overcome it.
4. Analysis Paralysis
A key part of making effective decisions is gathering information. This might include data, research, customer feedback, or input from your team. The more information you have, the better equipped you’ll be to make an informed decision. But when do you stop? How much information is enough?
Analysis paralysis is when you are unable to make a decision or take action due to overthinking or analyzing a situation. You get stuck in the information-gathering phase, perpetually waiting for 100% clarity and all the information you can get.
Ray Dalio talks about how decision-making is a two-step process, first learning, then deciding. But analysis paralysis is getting stuck in the first phase. At some point, we must decide when we have learned enough, and move confidently into the deciding phase.
Analysis paralysis can have a significant impact on businesses, leading to missed opportunities, delayed projects, and decreased productivity. It can also lead to a lack of confidence in decision-making abilities and result in a culture of indecisiveness.
To overcome analysis paralysis, it’s important to set clear goals and timelines for decision-making. Deciding how much information you need to gather, and how much clarity you need to gain. Achieving 100% of the required information is an illusion, instead consider how can you make a decision with 80%, 50%, 20% of the data you would like.
Once you’ve learned all you can, it’s time to put it into action. Consider the options, make a decision, and move confidently forward.
5. Decision Fatigue
Decision fatigue refers to the mental exhaustion that results from having to make a large number of decisions over a period of time. Every decision that we make consumes mental energy, and this energy is finite. As a result, the more decisions we make, the more fatigued we become, and the quality of our decisions may begin to decline.
It’s this reason why Mark Zuckerberg wears the same simple clothes every day;
“I really want to clear my life to make it so that I have to make as few decisions as possible about anything except how to best serve this community,” said Zuckerberg.”
A CEO who spends their day making important decisions about the company may experience decision fatigue by the end of the day, leading to poor decision-making in the evening. Similarly, a person who spends all day deciding what to eat, wear, and do may experience decision fatigue and struggle to make decisions later on in the day.
To combat decision fatigue, it’s important to prioritize decisions and limit the number of choices that need to be made. Don’t waste your mental energy on decisions that don’t matter, save it for the ones you really care about.
Closing Points
Not every decision will lead to success, but that doesn’t mean you should avoid making decisions altogether. Embrace failure as an opportunity to learn and grow, and use that knowledge to make better decisions in the future. Failure is how we grow, don’t fear it.
Another point is that, while it’s important to gather information, don’t ignore your gut instincts. Sometimes, your intuition can lead you to make the best decision. When I look back on my career, some of the best decisions I’ve made were done because it felt good, with little or no data to back it up at all. There’s power in your intuition, so sometimes take a leap of faith and dive in.
Being an effective decision-maker is a critical part of being a successful manager and employee. By considering your own approach to decision-making, you too can become more effective in your professional and personal life. You too can navigate the decision-making process with confidence and drive yourself and your team forward.
“Nothing is more difficult, and therefore more precious, than to be able to decide.” — Napoleon Bonaparte
