Better Organizational Decision Making

  • The Conformation bias will stop you from evaluating evidence contradictory to your view
  • Clustering illusion will let you recognize patterns in data and overestimate their importance
  • Conjunction fallacy will have you believe that a special set of circumstances are more likely than a general one.
  • Active reflection, I fully subscribe to the point of view that we “don’t learn from experience, we learn from reflecting on experience”. Reflection is the mechanism we have to analyze and produce new insights. You observe prior experiences and your capabilities to abstract and conceptualize help you improve on your future decisions.
  • Decision logging and review (reflection). From a learning point of view making a note of the decision. Understanding what went into it, and then, carefully considering the merits of it.

A Sample Decision Making Framework

  • A clear, objective problem definition. Ensuring we understand the problem at hand.
  • Risk assessment. What is at risk? Understand whether the decision really needs to be made now, or whether it can be postponed.
  • Is the decision reversible? If we go one way, how far down the road can we travel and still back out of the decision and choose an alternative route. This should inform how fast you can make that particular decision.
  • Decision criteria. The criterion by which we judge the decision. Do we give different weight to different criteria?
  • Potential options, a list of options that are, or can be made available to us.
  • Potential outcomes, ties into understanding what is at risk
  • Action - making a decision and documenting it.
  • Reviewing the decision. As noted above, reflecting on the decision as time passes helps you learn and make better decisions down the line. I’ll make an arbitrary recommendation of a review 6 months after a decision is made. But that is obviously dependent on the decision.
  • System 1 which is impulsive, fast, emotional and unconscious of thought.
  • System 2, which is thoughtful, slow, logical and effortful.

--

--

--

An MBA & technology enthusiast. Loves reading good books. Mostly interested in karate, photography and cooking. Head of Operations & Co-founder at GRID

Love podcasts or audiobooks? Learn on the go with our new app.

Recommended from Medium

Why You’re Struggling to Lead. And How to Improve.

When Startups Grow Up… Becoming New Leaders

The Currency of Saying Yes on Teams

How to Choose the Right Sales Manager for Your Company

How a Guessing Game Can Make You a Better Leader

The Art of Successful Innovation

“Growing is a mistake” and other sentences about organizational growth.

3 Effective Ways to Keep Your Sales Team Motivated

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Thorsteinn Yngvi Gudmundsson

Thorsteinn Yngvi Gudmundsson

An MBA & technology enthusiast. Loves reading good books. Mostly interested in karate, photography and cooking. Head of Operations & Co-founder at GRID

More from Medium

My Best Boss — The Empowering Leader

Middle managers are your catalysts for change

Three lego figures around a table. The middle figure has a anxious look on their face. On one side a figure holds a cup of tea for the person and on the other side, a figure in a hat has their hand on the middle figure providing reassurance.

3 Unexpected Lessons Ukraine is Teaching Us About Company Culture

Six Degrees of Kevin Bacon Meets CX