Making good decisions is thus one of the most important determinants of how well we meet our responsibilities and achieve our personal and professional goals. An effective decision-making process will fulfill these following criteria:
- It focuses on what’s important.
- It is logical and consistent.
- It acknowledges both subjective and objective factors and blends analytical with intuitive thinking.
- It requires only as much information and analysis as is necessary to resolve a particular dilemma.
- It encourages and guides the gathering of relevant information and informed opinion.
- It is straightforward, reliable, easy to use, and flexible.
We should therefore, use a systematic approach in arriving at decision and as a result, we shall be discussing an alternative steps to decision making. This step-by-step approach has been tested the world over, it will not show us what to decide but will tell us how to decide.
The approach refer to has been coined as the PrOACT approach. The essence of the PrOACT approach is to divide and conquer. In resolving a complex decision situation, we break it into these elements and think systematically about each one, focusing on those that are key to our particular situation. Then we reassemble our thoughts and analysis into the smart choice. So, although our method may not make a hard decision easy, it will certainly make it easier. The PrOACT model will be discussed below.
Specifying the Problem – The way we frame our decision at the outset can make all the difference. To choose well, we need to state our decision problems carefully, acknowledging their complexity and avoiding unwarranted assumptions and option-limiting prejudices. In defining the problem, we need to focus on the problem rather than the symptoms and also the need to avoid framing bias.
Specifying the Objectives – our decision should get us where we want to go. A decision is a means to an end. There is the need to ask ourselves what we want to achieve the most and which of our interests, values, concerns, fears, and aspirations are most relevant to achieving our goal. By thinking through the objectives will give direction to our decision making. The objectives are usually in contrast to the problem. For instance, if the problem is that we are making losses, our objectives should then be in contrast to that which will be how to stop the losses or even the need to make profit.
State the Alternatives – the alternatives represent the different courses of action we have to choose from. If we did not have different alternatives, we would not be facing a decision. Here, there is the need for us to consider all the alternatives available or at least a wide range of alternatives.
Understanding the Consequences – there is the need to understand how well our alternatives satisfy the objectives. By assessing the consequences of each alternative will help to identify those that best meet our overall objectives.
Face the effect of Trade-off – since objectives frequently conflict with one another, there is the need to strike a balance. In most complex decisions, there is no one perfect alternative. Different alternatives fulfill different arrays of objectives. Our task therefore, is to choose intelligently among the less-than-perfect possibilities. To do so, we need to set priorities by openly addressing the need for trade-offs among competing objectives.
In addition to the above, the following are also considered as part of the PrOACT model of business decision process:
Clarifying uncertainties – Uncertainty makes choosing far more difficult. But effective decision-making demands that we confront uncertainty, judging the likelihood of different outcomes and assessing their possible impacts.
Thinking hard about risk tolerance – When decisions involve uncertainties, the desired consequence may not be the one that actually results. A conscious awareness of our willingness to accept risk will make our decision-making process smoother and more effective. It will indeed help to choose an alternative with the right level of risk.
Consider linked decisions – Whatever we decide today could influence your choices tomorrow, and our goals for tomorrow should influence our choices today. Thus, many important decisions are linked over time. The key to dealing effectively with linked decisions is to isolate and resolve near-term issues while gathering the information needed to resolve those that will arise later. By sequencing our actions to fully exploit what we learn along the way, you will be doing your best, despite an uncertain world, to make smarter choices.
Decisions becomes smarter if these steps are followed. I therefore recommend that we try to adopt this.
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