A decision is a process involving a series of steps, such as data collection, analysis, categorization, and arrangement, followed by a comparison between possibilities to derive a logical result that the individual deems the most favorable from a rational standpoint.
Our human brain, with its susceptibility to emotions, past and current experiences, and the surrounding environment, can sometimes play tricks on us, affecting the logic behind our choices.
Back in 1979, Scientist Daniel Kahneman introduced the prospect theory, which describes the decision processes in 2 stages: the editing or framing phase and the evaluation phase. This is followed by choosing the alternative having a higher utility. Throughout these 2 stages, the decision-maker undergoes 7 steps to reach the appropriate solution.
Despite the clarity of the steps outlined by Kahneman, the context surrounding the decision-making and information analysis matters immensely to leaders. Decision-making during ordinary times may differ from decision-making during high-pressure situations. Times of adversity can be likened to a double-edged sword: available information might be incomplete, erroneous, or analyzed in a manner that does not align with future possibilities and assumptions. In such times, seeking guidance from experts in the field becomes essential to bring logic to the decision-making table.
Indeed, some might perceive decisions as being made swiftly and effortlessly. But wait a moment! Even seemingly immediate decisions involve a series of steps, as they are inherently influenced by past contexts. If we delve into the workings of the human mind, we discover that every decision, regardless of its apparent simplicity, undergoes several steps. These steps encompass defining the event, gathering information, identifying alternatives and their potential consequences, evaluating the evidence, selecting the most suitable alternatives, adopting an approach to finalize the decision, and finally reviewing the decision made.
A methodology devised to make this process more manageable is known as S3, with “S” representing the initial letters of the following 3 words: Significance, Scope, and Speed.
This three-dimensional cube-shaped framework showcases for leaders the interplay between the speed of changes in the work environment, as well as their impact on the scope and significance of tasks. When discussing this framework, we find that many leaders eloquently advocate delegation to allocate time for what holds higher priority and importance. However, a crucial question arises – did the leader delegate the task to the right individual equipped with the necessary resources? Or is the delegation limited to the process rather than the decision-making? Here, we observe leaders getting caught up in the intricacies of routine tasks, failing to grasp the swift changes unfolding in the work system. This situation can drive the leader into the well-known trap of micromanagement.
One of the decision-making frameworks revolves around 4 fundamental pillars: knowledge, lack of knowledge, fear, and stress. When a leader finds himself caught between the pillars of lack of knowledge and stress, he may become paralyzed in the decision-making process. This underscores the importance of a continuously learning leader – someone who actively seeks new knowledge, remains mindful of his surroundings, and maintains strong connections with partners in the working ecosystem. On the other hand, even if a leader possesses the necessary knowledge, they may still struggle with decision-making when confronted with a stressful situation, as “wisdom grows in proportion to awareness of ignorance.” In such circumstances, having expert advisors surrounding the leader becomes crucial for they can help him avoid pitfalls and guide him in making sound decisions.
The human mind is naturally influenced by events, emotions, time, people, and the surrounding environment. However, these factors can sometimes veer decisions off the right track. Acquiring knowledge and continuously seeking to learn about various aspects of management and its fields can help leaders remain impartial in their decision-making and enable them to approach matters logically. Having competent advisors with strong capabilities to review decisions, especially those with a significant impact on the work ecosystem, ensures smooth and safe navigation through the decision-making process.
