Decision Making Techniques

How to Make Good Decisions

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If you want to lead effectively, you need to be able to make good decisions. If you can learn to do this in a timely and well-considered way, then you can lead your team to spectacular and well-deserved success. However, if you dither or make poor decisions, your team risks failure and your time as a leader will probably be brutally short.

The techniques in this section help you to make the best decisions possible with the information you have available. They help you map out the likely consequences of decisions, work out the importance of individual factors, and choose the best courses of action.

The section starts with some simple techniques that help you to make decisions where many factors are claiming your attention. It then moves on to explain more powerful techniques, such as use of Decision Trees, 6 Thinking Hats and Cost/Benefit Analysis, which are routinely used in commercial Decision Making.

	Introduction
	Pareto Analysis - Choosing what to change
	Paired Comparison Analysis - Working out the relative importance of different options
	Grid Analysis - Making a choice taking into account many factors
	PMI - Weighing the pros and cons of a decision
	Force Field Analysis - Analyzing the pressures for and against change
	Six Thinking Hats - Looking at a decision from different perspectives
	Starbursting - Understanding options better by brainstorming questions
	Stepladder Technique - Making better group decisions
	Cost/Benefit Analysis - Seeing whether a decision makes financial sense
	Cash Flow Forecasting with Spreadsheets - Analyzing whether an idea is financially viable
	Decision Trees - Choosing by valuing different options
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	Decision Making Under Uncertainty - Making the best choice with the information available
	Quantitative Strategic Planning Matrix (QSPM) - Choosing the best strategic way forward
	The Vroom-Yetton-Jago Decision Model - Deciding how to decide
	What Are Your Values? - Deciding what's most important in life
	Monte Carlo Analysis - Bringing uncertainty and risk into forecasting
	Linear Programming - Optimizing your limited resources
	Critical Thinking - Develop the skills for successful thinking
	Impact Analysis - Identifying the "unexpected" consequences of a decision
	The Ladder of Inference - Avoiding "jumping to conclusions"
	Blindspot Analysis - Avoiding common 'fatal flaws' in decision making
	The Kepner-Tregoe Matrix - Making unbiased, risk assessed decisions
	Nominal Group Technique - Prioritizing issues and projects to achieve consensus
	The Delphi Technique - Achieving well thought through consensus among experts
	Avoiding Groupthink - Avoiding fatal flaws in group decision making
	Reactive Decision Making - Making good decisions under pressure
	Spiral Dynamics - Understanding how people's values may affect their decision making
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In the first of these articles, we look at how these tools fit together. To read this, click 'Next article' below. Other relevant destinations are shown in the "Extension Resources" list underneath.

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Extension Resources (Not included in the Mind Tools E-book.)

Dynamics of Decision Making - Making better and more consistent decisions
Analytic Hierarchy Process (AHP) - Choosing by weighing up many subjective factors
Risk Analysis - Evaluating the risks that you face
Are You a 'Cautious' or 'Courageous' Decision Maker? - Understand your risk profile and make better decisions
Organizing Team decision-making - Reaching consensus for better decisions
Multi-Voting - Choosing fairly between many options
The Foursquare Protocol - Learning to manage ethical decisions

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