Today we are going to talk about a fundamental competence: decision-making. Decision-making is the process of choosing the best option among several alternatives to achieve a specific goal.
This competency involves analyzing information, evaluating options, and making an informed and responsible decision. Decision-making competence refers to the ability to identify, analyze, and select the best option among different alternatives, considering short- and long-term implications, risks, and organizational or personal objectives.
It has to do with other competencies seen above such as analytical capacity (evaluating relevant information to understand problems), conflict management (integrating diverse perspectives to reach consensus, self-control, (regulating emotions to avoid impulsive decisions) and results-oriented, (choosing options and acting to achieve objectives).
Steps in the Decision-Making Process:
- Identify the Problem: Clearly define the problem or situation that requires a decision.
- Gather Information: Obtain all the relevant information necessary to make a well-informed decision.
- Evaluate Options: Analyze possible solutions or alternatives and evaluate their pros and cons.
- Making the Decision: Choose the best alternative based on the analysis carried out.
- Implement the Decision: Implement the decision and execute the action plan.
- Evaluate the Results: Review the results of the decision and make adjustments if necessary.
HOW CAN I DEVELOP MY DECISION-MAKING SKILLS?
- Develop your Emotional Intelligence: Stay calm under pressure and don’t let negative emotions influence your judgment.
- Practice mindfulness to reduce the influence of negative emotions.
- Analyze Data and Trends with critical thinking:
- Use quantitative and qualitative data to support your decisions.
- Performs SWOT analysis (weaknesses, threats, strengths, opportunities) in different scenarios.
- Learn from Experience and Ask for Feedback:
- Reflect on past decisions, both successful and unsuccessful, to improve your decision process. Analyze real cases about your decision-making to understand what worked and why.
- Ask for feedback on decisions you’ve made to see other points of view with an open mind.
- Practice Specific techniques:
- Apply decision matrices to compare options based on objective criteria. The process is simple, but it’s most effective when you want to decide between several comparable options. It serves to reduce the number of options and to be able to weigh between several important factors.
- Identify the different alternatives.
- Choose the important factors to consider for your decision and draw your matrix.
- Fill in your matrix, giving each factor a Value, at a level of 1 to 5 according to its quality in relation to this factor. For example, imagine that you want to buy a car and you are hesitating between 3 cars of the same brand and range, from different dealerships. Imagine that there are 4 important factors for your decision (price, mileage, year of manufacture, extra equipment). Your initial matrix could be as follows, with the Value/Score you give to each factor in that car:
- Apply decision matrices to compare options based on objective criteria. The process is simple, but it’s most effective when you want to decide between several comparable options. It serves to reduce the number of options and to be able to weigh between several important factors.
| OPTIONS | Price | Mileage | Year of manufacture | Extras |
| CAR A | 5 | 2 | 3 | 2 |
| CAR B | 3 | 4 | 3 | 4 |
| CAR C | 1 | 5 | 5 | 4 |
- Add Weighting. For example, if you’ve chosen 4 factors, sort 1 through 4 in order of how important each factor is to you. The weighting in this example will therefore be from 1 to 4, (with 1 being the least important and 4 being the most important).
Example of Weighting:
1- (Least important)- Year of manufacture
2 – Extra equipment
3 – Mileage
4 (Most important)- Price
- Multiply the Values by each Weight:
| OPTIONS | Price | Mileage | Year of manufacture | Extras |
| CAR A | 5 x4 | 2 x3 | 3 x 1 | 2 x2 |
| CAR B | 3 x4 | 5 x3 | 3 x 1 | 4 x2 |
| CAR C | 1 x4 | 5 x3 | 5 x1 | 4 x2 |
- Calculate the Rating for each option:
| OPTIONS | Price | Kms | Year fabri. | Extras | TOTAL |
| CAR A | 5 x4 = 20 | 2 x3 = 6 | 3 x1 = 3 | 2 x2 = 4 | 33 |
| CAR B | 3 x4 = 12 | 5 x3 = 15 | 3 x1 = 3 | 4 x2 = 8 | 38 |
| CAR C | 1 x4 = 4 | 5 x3 = 15 | 5 x 1 = 5 | 4 x2 = 8 | 32 |
- Use Edward de Bono’s “6 Hats Method for Thinking” to approach decisions from multiple perspectives. Each hat represents a specific way of thinking: white (facts and data), red (emotions and feelings), black (critical judgment and caution), yellow (optimism and benefits), green (creativity and alternatives), and blue (control and organization of the process). Think about the specific situation in which you have to make your decision, “put on each of the hats” and answer the questions that a person with that “hat” would ask yourself:
- White (facts and data): What objective data do I have about the options? What are the facts related to these options to consider?
- Red (emotions and feelings): How do I feel about each option? What emotional implications does each alternative have for me?
- Black (critical judgment and caution): What is the worst-case scenario in each option? What can I lose in each option?
- Yellow (optimism and benefits): What is the best scenario in each option? What can I win in each option?
- Green (creativity and alternatives): What other alternatives can I think of related to each option? What new ideas have I not yet considered?
- Blue (control and organization of the process): What are the steps to follow for each alternative? How will I measure the impact of each option and follow up?
“Remember to continue developing your talent to reach your best version”
