Decision-Making Techniques

How to Make Better Decisions


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Decision making is an essential leadership skill. If you can learn how to make timely, well-considered decisions, then you can lead your team to well-deserved success. If, however, you make poor decisions, your time as a leader will be brutally short.

The 40+ techniques explained in this section help you to make the best decisions possible with the information available. These tools help you map out the likely consequences of decisions, balance different factors, and choose the best courses of action to take.

Start by taking our How Good is Your Decision Making? self-test, and then explore different decision making tools in detail. In particular, take a look at our sections on Choosing Between Options, and Deciding Whether to Go Ahead.

The Browse by Category box will help you target specific skills, while you can look through the list below to find interesting topics.

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Decision-Making Models

The Vroom-Yetton-Jago Decision Model
Deciding How to Decide

The Kepner-Tregoe Matrix
Making Unbiased, Risk-Assessed Decisions

OODA Loops 
Understanding the Decision Cycle

The Recognition-Primed Decision (RPD) Process
Making Good Decisions Under Pressure

Choosing Between Options

Grid Analysis
Making a Choice Balancing Many Factors

Paired Comparison Analysis
Working Out Relative Importances

The Analytic Hierarchy Process (AHP)
Choosing by Weighing Up Many Subjective Factors

Conjoint Analysis
Measuring Buyer Preferences

Pareto Analysis
Using the 80:20 Rule to Prioritize

Decision Trees
Choosing by Projecting “Expected Outcomes”

The Quantitative Strategic Planning Matrix (QSPM)
Choosing the Best Strategic Way Forward

The Futures Wheel
Identifying Future Consequences of a Change

Deciding Whether to Go Ahead

Go/No-Go Decisions
Deciding Whether to Go Ahead

Risk Analysis
Evaluating and Managing Risks

Plus, Minus, Interesting
Weighing the Pros and Cons of a Decision

Force Field Analysis
Analyzing Pressures For and Against Change

"What If" Analysis
Making Decisions by Exploring Scenarios

Impact Analysis
Identifying the Unexpected Consequences of a Decision

Business Experiments
Taking Intelligent Risks

Financial Decisions

Cost-Benefit Analysis
Deciding, Quantitatively, Whether to go Ahead

Break-Even Analysis
Determining When a Product Becomes Profitable

Cash Flow Forecasting
Forecasting the Impact of a Financial Decision

Improving Decision Making

The Ladder of Inference
Avoiding “Jumping to Conclusions”

Decision Making Under Uncertainty
Making the Best Choice with the Information Available

Decision Making - "Cautious" or "Courageous"?
Understand Your Risk Preference and Make Better Decisions

Six Thinking Hats
Looking at a Decision From All Points of View

Critical Thinking
Develop the Skills for Successful Thinking

Blindspot Analysis
Avoiding Common Fatal Flaws in Decision Making

Reactive Decision Making 
Making Good Decisions Under Pressure

Linear Programming
Optimizing Your Limited Resources

Monte Carlo Analysis
Bringing Uncertainty and Risk Into Forecasting

The Impact of Ethics and Values

The Foursquare Protocol
Learning to Manage Ethical Decisions

What Are Your Values?
Deciding What's Most Important in Life

Spiral Dynamics
Understanding How People's Values May Affect Their Decision Making

Group Decision Making

Organizing Team Decision Making
Reaching Consensus for Better Decisions

Multi-Voting
Choosing Fairly Between Many Options

The Nominal Group Technique
Prioritizing Issues and Projects to Achieve Consensus

The Stepladder Technique
Making Better Group Decisions

The Delphi Technique
Achieving Well Thought-Through Consensus Among Experts

Avoiding Groupthink
Avoiding Fatal Flaws in Group Decision Making

Hartnett's Consensus-Oriented Decision-Making Model
Developing Solutions Collectively


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