problem-solving and decision-making

simple process for problem-solving and decision-making

Problem solving and decision-making are important skills for business and life. Problem-solving often involves decision-making, and decision-making is especially important for management and leadership. There are processes and techniques to improve decision-making and the quality of decisions. Decision-making is more natural to certain personalities, so these people should focus more on improving the quality of their decisions. People that are less natural decision-makers are often able to make quality assessments, but then need to be more decisive in acting upon the assessments made. Problem-solving and decision-making are closely linked, and each requires creativity in identifying and developing options, for which the brainstorming technique is particularly useful. See also the free SWOT analysis template and examples, and PEST analysis template, which help decision-making and problem-solving. SWOT analysis helps assess the strength of a company, a business proposition or idea; PEST analysis helps to assess the potential and suitability of a market. Good decision-making requires a mixture of skills: creative development and identification of options, clarity of judgement, firmness of decision, and effective implementation. For group problem-solving and decision-making, or when a consensus is required, workshops help, within which you can incorporate these tools and process as appropriate. Here are some useful methods for effective decision-making and problem-solving: First a simple step-by-step process for effective decision-making and problem-solving.

And definitely see the ethical decision-making quick guide.

decision-making process

Define and clarify the issue - does it warrant action? If so, now? Is the matter urgent, important or both. See the Pareto Principle.
Gather all the facts and understand their causes.
Think about or brainstorm possible options and solutions. (See brainstorming process)
Consider and compare the pros and cons of each option - consult if necessary - it probably will be.
Select the best option - avoid vagueness or 'foot in both camps' compromise.
Explain your decision to those involved and affected, and follow up to ensure proper and effective implementation.

Decision-making maxims will help to reinforce the above decision-making process whether related to problem-solving or not, for example:

"We know what happens to people who stay in the middle of the road. They get run down." (Aneurin Bevan)

"In any moment of decision the best thing you can do is the right thing, the next best thing is the wrong thing, and the worst thing you can do is nothing." (attributed to Theodore Roosevelt - more maxims on the quotes page)

JFDI - Just Frigging Do it (polite version). The decision-maker's motto. There are usually several right answers when you are faced with a complex decision. When you've found the best solution you can find, get on with it, make it work, and it most probably will. (More useful rules, acronyms and training ideas on the acronyms page)

pro's and con's decision-making method

Another simple process for decision-making is the pro's and con's list.

Some decisions are a simple matter of whether to make a change or not, such as moving, taking a new job, or buying something, selling something, replacing something, etc. Other decisions involve number of options, and are concerned more with how to do something, involving a number of choices. Use the brainstorming process to identify and develop options for decision-making and problem-solving.

First you will need a separate sheet for each identified option.
On each sheet write clearly the option concerned, and then beneath it the headings 'pro's' and 'con's' (or 'advantages' and disadvantages', or simply 'for' and 'against'). Many decisions simply involve the choice of whether to go ahead or not, to change or not; in these cases you need only one sheet.
Then write down as many effects and implications of the particular option that you (and others if appropriate) can think of, placing each in the relevant column.
If helpful 'weight' each factor, by giving it a score out of three or five points (e.g., 5 being extremely significant, and 1 being of minor significance).
When you have listed all the points you can think of for the option concerned compare the number or total score of the items/effects/factors between the two columns.
This will provide a reflection and indication as to the overall attractiveness and benefit of the option concerned. If you have scored each item you will actually be able to arrive at a total score, being the difference between the pro's and con's column totals. The bigger the difference between the total pro's and total con's then the more attractive the option is.
If you have a number of options and have complete a pro's and con's sheet for each option, compare the attractiveness - points difference between pro's and con's - for each option. The biggest positive difference between pro's and con's is the most attractive option.
N.B. If you don't like the answer that the decision-making sheet(s) reflect back to you, it means you haven't included all the con's - especially the emotional ones, or you haven't scored the factors consistently, so re-visit the sheet(s) concerned.

You will find that writing things down in this way will help you to see things more clearly, become more objective and detached, which will help you to make clearer decisions.

example pro's and con's weighted decision-making sheet

decision option: should I buy a new car?

pro's	con's
better comfort (3)	cost outlay will mean making sacrifices (5)
lower fuel costs (3)	higher insurance (3)
lower servicing costs (4)	time and hassle to choose and buy it (2)
better for family use (3)	disposal or sale of old car (2)
better reliability (5)	big decisions like this scare and upset me (4)
it'll be a load off my mind (2)

total 6 pro's, total score 20	total 5 con's, total score 16

On the basis of the pro's and con's, and the weighting applied, in the above example there's a clear overall quantifiable benefit attached to the decision to go ahead and buy a new car. Notice that it's even possible to include 'intangible' emotional issues in the pro's and con's comparison, for example 'it'll be a load off my mind', and 'decisions scare and upset me'. A decision-making pro's and con's list like this helps remove the emotion which blocks clear thinking and decision-making - you can now see the wood for the trees again, and make a confident decision.