Everyone makes decision irrespective of status, age, literacy, gender, nationality, and any other criteria. The only difference is what type of decision you are making, how are you making the decision and what impact is such decision having/will have on you or any other person.
On a professional level, there are many skills that are important to succeed, but Decision-making skill stands out. Together with interpersonal and communication skills, Decision-making distinguishes good managers from bad and differentiates successful and unsuccessful companies[1].
Considering the role of decision-making in both personal and professional affairs as well impact on other entities whether individuals or organizations, it is important that we review what guides what decisions are being made and most importantly how decisions are being made.
Listening to the facilitator of the Analysis of Business Problems (ABP) course in the ongoing Executive Master of Business Administration (EMBA) program at Lagos Business School (LBS), I have come to realize that quality of decision is not only proportional to the quality of information available but also dependent on use of proven tools based on logic and detach from emotion.
The more emotion you are when making decision, the more likely the decision will be marred by biases and prejudices. It is therefore important to note that effective decision that solves problem is made logically and can be repeated every time the same problem presents itself contrary to emotional decision even if such decision solved the problem at hand.
Analysis of Business Problems (ABP) outline the need to learn how to make better decisions, guide against our own biases and recognizes other people biases and what triggers such biases. The course is lean much on case study and analysis based on effective use of tools.
One of the tools is PrOACT Model. The model starts with Problem identification. This is critical step to making any decision at providing solution. You must be able to identify the problem and not symptoms of the problem. You will need to proper frame the problem without bias as sometimes, bias framing may prevent identification of the problem thereby making ineffective whatever solution is proffered.
Secondly, there is need to clearly state the Objective of the decision to be made. What is the Objective? Is it to solve the Problem identified or ignore the problem existence? Of course, there is no problem without solution, however, effective solution to any identified problem may not necessary be one option, in fact, many times, there are many options to solve a problem. This brings the concept of Alternatives available to achieve the objective which to solve the problem.
All alternatives identified must be subjected to some Criteria to determine which of the alternative will be an effective solution to the problem to achieve the objective.
Reviewing available alternatives with stated criteria will assist to understand the Consequence that may result from each alternative and Trade-off, Uncertainty and Risk involve in each alternative. Sometimes, logical use of tool will reveal that in solving a particular by taking certain decision, there may be linked decisions that must be taken into consideration otherwise the main problem will not be solved effectively.
[1] Why Decision-Making Is Important in Management – brilliantio
