What is the hardest thing that most of us have to do during our day? What activity keeps us awake at night, and plagues us during the day? Making decisions.
We have to make hundreds, probably thousands, every day of our lives – from ‘tea or coffee’ and ‘overtake that car or not’, to ’shall I accept that job offer’ and ‘do I go on that dates or not’. In fact, I would suggest that everything we do is the result of one decision or another, and as what we do is who we are – the decisions we make reflect the person we are.
So how do we make this decision making process easier? Well, I have created a formula (and a free downloadable tool) for a 2 way decision (for example buying a new car vs not buying a new car):
d = [(wa - xb) - (yc - zd)]
Where:
d = the decision to be made
w = the positive benefit of the first option from 0 (no benefit) to 10 (total benefit)
x = the negative consequence of the first option from 0 (no consequence) to 10 (all hell breaks loose)
y = the positive benefit of the second option from 0 (no benefit) to 10 (total benefit)
z = the negative consequence of the second option from 0 (no consequence) to 10 (all hell breaks loose)
a, b, c, d = this is the likelihood of each benefit or consequence occurring from 1 = unlikely, 2 = possible, and 3 = probable
If the result is positive then you need to take the first option. For example, today we have had nearly a foot of snow fall over night so I have the choice of heading into work to see if I can get there, or working from home.
Heading into work would mean that I got to see a number of people I need to catch-up with including my boss so has a benefit of 4 out of 10, but I don’t know if these people are actually in so is only a possible outcome = 2. But heading in may mean I get stuck in the snow mid-journey and spend the day in the car – a consequence of 6 out of 10, but again only a possible outcome so 2.
Staying at home means I get a good deal of work done for sure so 3 out of 10 with a probably likelihood = 3. But if everyone else makes it in I will look like a slacker so consequence of 7, but if I am not sure I’ll make it neither will they so I think this is unlikely = 1.
d = [(42 - 62) - (33 - 71)]
d = -40 = Stay at home
And to make things easier for you – download my Excel Decision Making Tool. Just plug in the data, and you can get your answer straight away:
Download Excel Decision Making Tool
Okay, so whilst you could use a spreadsheet and a bit of math to base your decisions on, you shouldn’t really. What the formula is there for is to make you think about components of any option. You don’t want to quit your job as you don’t want to end up on the streets – okay so that is a big consequence, but how likely is it? Yes leaving your partner might mean that you are able to go out on dates again – but how likely are you to find someone better for you? You may make the same decisions, and they may still be the right ones, but you will be, and more importantly feel, a better decision maker.
