TimingMaking a decision at the right time. A decision made too early can result in a failure to adapt to change or new information. It can also be a waste of time and resources to make decisions that end up being irrelevant. Alternatively, making a decision too late can result in missed opportunities. If you decide you want to be a doctor when you're 14 years old, this may be too early as life experience may present you with other opportunities and more insight about your talents and weaknesses. If you decide you want to be a doctor at 40, this may be suboptimal as your peak ability to succeed in the profession may have past. strangely engaged in a project to redesign an office interior. He ends up spending a total of 16 hours considering the color scheme for the office. This may neglect larger issues a firm is facing. As such, a reasonable choice of color scheme made in less than 60 seconds could be considered a higher quality decision. Due diligence is the process of researching a decision to determine the facts that are relevant.garbage in, garbage out such that a decision based on poor quality information tends to be poor quality. For example, if a patient is given inaccurate information about the side effects and probable outcomes of different treatment options, they may make a poor choice of treatment.
Dealing With AmbiguityDecisions often involve a large number of unknowns. The ability to make reasonable approximations and predictions to proceed with a decision in the face of uncertainty improves decision quality. Avoiding decisions or options that involve uncertainty can result in poor decisions. Likewise, low quality predictions and estimates can also result in poor decisions. For example, a stock market investor who makes overly optimistic predictions for the future revenue of a new product is likely to overvalue a stock.
Imagination & CreativityAnalysis that steps beyond the obvious to consider new problems and solutions. It is a common failure of decision making to expect future problems and solutions to resemble the present.
AlternativesDecision quality tends to improve the more alternatives you consider. It is common to brainstorm large lists of potential alternatives as a starting point in any decision.
Trade-offsThe process of modeling the trade-offs between alternatives including the merits, demerits, opportunities and risks associated with each path.
Diverse PerspectivesDecisions benefit from diverse perspectives and ways of thinking. For example, a decision may begin with an optimistic process of freely generating ideas without validation and progress to a more pessimistic process of validating ideas.
RationaleThe rational thought that is applied to framing a decision, identifying alternatives, modeling tradeoffs and making a decision. For example, decisions made by a group through a process of consensus building may be viewed as irrational by each member of the group. As such, decisions may benefit from the influence of a leader who directs decision making along rational lines.
Commitment & AcceptanceThe degree to which individuals and groups accept a decision and are committed to making it happen. A suboptimal decision that is widely accepted can be of more value than a more logical decision that isn't accepted. For example, a government plan that completely solves an environmental problem may be of little value if it has no acceptance such that it is unlikely to be implemented. In this case, a plan that partially solves the issue that is widely accepted may be of more value.
Anti-patternsValidation of a decision against common failures of rational thought such as biases and fallacies can improve decision quality.
OverviewIn theory, decision quality relates to the reasonableness of a decision at the time it was made. However, it is common to evaluate decisions purely in terms of outcomes whereby a bad decision was good if it works out well and vice versa.
|Overview: Decision Quality
The reasonableness of a decision at the time it is made.