Monday, 22 June 2015

4 Stages for decision making

I'll try to get straight to the point.
All the guide is based on case studies in Universities and Mathematics.

There are 4 stages in the decision making that our subconscious mind goes through.
Most of the time we are not aware of them, many of us are stuck at a stage in the middle without realizing it.

The 4 stages of every human decision making:

Step 1:

When taking a decision, first we need to decide whether we have to take it now or wait for later.
The good thing about taking the time is more time to collect information and not being impulsive.
Sometimes it's a problem, people are depending on our decision, like family and friends, we do not want to keep them waiting.

Step 2:

Incase a decision is required right now, we will make a table of pro's and con's even a quick one in our head.
Pay attention to that small detail: Not a regular table, We have to prioritize from 1-3 every category in our decision. For example, incase we are buying a car, we have color, safety and price.
So 1 being least important, 3 being very important:
Color - 1
Safety - 3
Price - 3
Then we can rank the benefits so knowing safety is the most important for us, it doesn't matter so much if the other car has a better color.
Bottom line: Prioritize your categories by importance.

Step 3:

I used the table, the difference between 2 decisions wasn't that big and still hard to determine.
In that case, we will consider something I call "The loss price/Mistake price".
How big is the price of making the wrong decision ?
For example, Let's stick with the car. If I take an unsafe car with a beautiful color, the coast of mistake is Dying painful death incase of a car crash. It's a big "Mistake price" to pay.
Bottom line- incase there's no obvious preference calculate the Mistake price.

Step 4:

Focus only on the benefits.
Incase the pros and cons are quite the same, the risk value is equal, focus only on the benefits you will get from one decision.
For example, My friend is a CEO of a successful company, taking crucial decisions on a daily basis, and most of the time he is right.
But, it takes him forever to pick a soup or a sandwich in a restaurant.
Why? Because when picking food he is focusing on the loss and not the benefits.
It's a state of mind you need to be in.
Simple Tip: If you see yourself thinking too much about a decision realize you are in the wrong state of mind, do a switch, focus on what you gain.
Go bling to risks, the law's of physics are just a recommendation for you.

Thank you for taking the time to read, I would love to get feedback.

No comments:

Post a Comment