How do i improve my decision making skills? What is the best business idea to pursue? Where do i invest my money? When is the right time to buy or sell a stock? Should i diversify my business or concentrate? What business book should i read now? Should i reduce my workforce so as to cut cost?
All the questions above and many more are decisions to be made. We make decisions everyday of our lives, but with the wide range of options presented to us, we are always held back by indecisiveness and regret over opportunity costs incurred from “wrong or bad” decisions. The following ten tips can assist you to improve your decision-making skills and reduce indecision in your all day life.
10 Ways to Improve Your Decision Making Skills
Before i dive into the pros and cons of improving your decision making skills, it is important you know that there are two categories of decision making. They are:
- Personal decision making
- Group decision making
How to improve your personal decision making skills
1. Do a Cost-Benefit Analysis
Before you reach the ultimate decision, it is crucial to check the cons and pros to ensure that you are making the right decision possible. This needs a cost-benefit analysis, in which you test the outcome to all possible route (both negative and positive). This will assist you to see the opportunity costs, or the things you miss out on when trying to figure if one decision is better than another.
2. Always Narrow Your Options
In order to simplify the cost-benefit analyzing, curtail yourself to fewer options. When more choices are presented to us, the bigger the challenges or difficulties in making a final decision. More choices can lead to more regret because we will consider every of the missed possibilities and worry whether we could have chosen one of the many other routes that were present. As such, narrowing your options will lead to bigger peace of mind.
3. Always Evaluate the Significances
Like how much time does it take you to mull over a potential decision? Twelve seconds? Twelve minutes? Twelve hours and more? It all depends on what is at stake. To reduce agonizing indecision, you must first determine the significance of a decision ( how big of an impact will it have on my life or business? How much will it cost me?), and create a deadline in accordance.
4. Do not sweat the small stuff
If it is something as easy as to deciding where to go for dinner or what to watch on Television, do not forget to keep things in perspective and keep your time frame for decisions to a reduced level. This is closely tied with evaluating the significance of a decision—if it will not affect you or others in a significant way, then do not delay yourself with endlessly debating between your options.
5. Observe your Research
When it comes to making major or big decisions like getting a new office space, furniture, cell phone, laptop, car brand, etc. You must put in the time and effort to seriously inform yourself about your impending purchase, its relevance to your business and its corresponding impact on your finances.
6. Seek the opinion of a well-informed personality
It is greater than just making a research of the facts and logistics of a decision; getting personal opinion can also develop your decision-making by giving you the confidence and reassurance that you are making the best decision. Whether it is asking your auto mechanic friend about a car purchase or checking consumer reports before purchasing a new appliance for your kitchen, informed opinions can assist.
How to Improve your Group Decision-Making Skills
7. Always Practice conflict management
Making decisions in a group always seems complicated because everyone has different point of views. Multiple parties heightens the chance of conflict, so to prepare yourself for these conditions, it is always useful to practice conflict management. Always identify the difference between a win-lose condition (such as agree where on one side gives up what they want to please the other) and win-win conditions ( as such as housing, when the two parties agree to give up some things in order to agree on other things).
8. Keep on Planning
When there is a group decision for you to make, it is better to decide the details well in advance in order to prevent conflict among the group members immediately before the event. This could be used for movie nights or dinner parties; while it regulates the spontaneity of plans, it develops the decision-making skills of everyone included and decreases the likelihood of bickering among the group.
9. Take control!
There is always a time to give and there is always a time to be assertive. If nobody is taking a strong stance on a decision, take control! Otherwise, you will waste precious time trying to decide on something when you could have been out catching fun or being productive.
10. Do not rely on Mistakes
The best step to a nice group decision making is letting go of past mistakes. Living with past mistakes and regrets will hurt your ability to decide on things fast and efficiently in the future, so instead of sitting on errors and failures, make a decision and do not look back but forged ahead.
In conclusion, i believe that the following tips will assist you to improve or develop your decision-making skills. However, i want to emphasize the point that reading this article will not improve your decision making skills even one bit; but acting on what you have read will.