Decision-making is a very problematic process that can sometimes be time-consuming and unpredictable. These days the general public has become more skeptical in relation to the solutions of managers, administrators, and coaches. It is not easy to experience the situation at once and predict the results of your decision in a long run. Every decision should carry a profound analysis and result in a profitable way for a manager or other workers. However, there are so many factors that can influence decision-making among them: stress, team, working conditions, and others. Unfortunately, a lot of people do not understand how to develop this process. So, the main task will be to depict some tips on making a choice with the help of thinking, decision modeling, and analysis.
People should be educated on the unique characteristics associated with the vast array of problem complexities, and leverage their unique individual knowledge and our "domain" knowledge into more innovative solutions to these challenging problems, that many currently like to second-guess and play Monday morning quarterback with (Pohl, 2014). This issue will be useful for everybody to know, just to be more informed in the current environment. Strategic decisions in the field of finance or marketing can be made with the help of psychology basis. It can be an effective opportunity to find out about the staff of the company and the main tendency of thinking. According to McKinsey's research of 2,207 executives about the quality of strategic decisions, 28 percent considered them good enough, 60 percent said that bad decisions were more often, and 12 percent thought that good decisions were seldom made (Lovallo and Sibody, 2010).
It is an important thing to recognize patterns to know about the relationships in the company; however, it can be a challenging experience as well. Common pattern biases include saliency biases and confirmation biases. What can be done in this case? We can use comparative analysis to change the angle of vision. As a result, participants will have a chance to see things from the other side and explain their meaning. For example, to improve US military effectiveness in Iraq in 2004, Colonel Kalev Sepp by himself, in 36 hours developed a reference class of 53 similar counterinsurgency conflicts, complete with strategies and outcomes. This effort informed subsequent policy changes (Lovallo and Sibody, 2010).
It is interesting to find out about optimism and stability in decision-making. In fact, most executives feel optimistic about their actions and gain confidence. However, here comes the rule: be confident in moderation not to damage the process. As for stability biases, they help companies feel the taste of losses more acutely than gains. Managers should behave building some aims which are not achieved by “business as usual”. Naturally, the conflicts between individual managers or in the whole company are inescapable and have a great impact on decisions made. Such decisions tend to be thoughtful. One more fact is that in every group or organization there is a leader, and the choice of this person is spread to others because they subconsciously trust. But there is a negative tendency when senior leaders believe in collective intelligence, so they act considering the interest of individuals in a way not to damage relationships in the group.
Dan Lovallo and Olivier Sibony (2010) have developed four steps for adopting the behavioral strategy to help everybody be on the right way. The first is to determine which decision is worth trying. This concern can’t be used in all decision making of course. It depends on the strategy of a company and on an executive team that can do it over time or iterate. Secondly, it should be taken into account which factors influence decisive actions. Here the discussion of experienced past decisions and observing current decisions will be useful. “This discussion will help surface the biases to which the decision process under review is particularly prone” (Lovallo and Sibody, 2010). Thirdly, choose a technique to counter the most relevant biases. In this way, strategy and specific debasing practices should be selected to be suitable for the culture and the decision-making styles of leaders of the company. The last one is to use an acquired in formal processes. A good decision practice requires appropriate management skills because it is how the team will be trained to act in spite of occurred difficulties.