16 January 2025 at 09:00PM
Enhancing Decision-Making Through Decision Quality (Highlights from January 2025 Virtual Luncheon Presentation)
Decision Quality is a systematic approach that helps individuals and organizations make better decisions faster. Previously known as decision and risk analysis, this method combines facilitation, mathematical tools, and organizational behavior insights. The process involves three key phases:
- Framing the Decision: Establishing a shared understanding of the problem by sharing background, defining the problem clearly, and identifying decision-makers.
- Generating Alternatives: Using tools like brainstorming, decision trees, and scenario planning to explore possible solutions.
- Evaluating Alternatives: Comparing trade-offs, prioritizing options, and mapping choices against key objectives.
Why Are Decisions Difficult?
Decision making, seemingly difficult, can be attributed to some of these common challenges:
- Having differing ideas in mind
- Uncertainties and incomplete information
- Cognitive biases like recency bias and past experiences
- Managing multiple stakeholders
- Changes in scope or unclear customer requirements
Overcoming Biases in Decision-Making
Kent explored two types of systematic thinking that influence decisions:
- System 1 Thinking: Fast, instinctive, and emotional; often prone to errors and biases.
- System 2 Thinking: Slower, deliberate, and logical; designed to counteract impulsive judgments but still susceptible to bias.
By using a structured framework, decision-makers can move beyond these biases and engage in thoughtful, productive discussions.
A Framework for Better Decisions
The Decision Quality framework emphasizes collaboration and structure through these steps:
- Frame the Problem: Define the issue, align perspectives, and identify key players.
- Generate Alternatives: Use creative tools to list and organize potential solutions.
- Evaluate Alternatives: Prioritize and compare strategies against goals.
Regular discussions within this framework foster efficient decision-making and prevent analysis paralysis.
Final Thoughts
Decision Quality offers a practical way to navigate the complexities of decision-making, ensuring clarity, consistency, and confidence in the process. By framing problems, exploring alternatives, and systematically evaluating options, teams can achieve better outcomes.
