Decision Making For Dummies

Dawna Jones generates imaginative insights and applies 25 years experience in helping businesses and organizations make bold decisions. She co-designs the future of organizations, transforming them from "business-as-usual" to inclusive cultures of prosperity.

• Introduction 1About This Book 1Foolish Assumptions 2Icons Used in This Book 3Beyond the Book 4Where to Go from Here 4Part I: Getting Started with Decision-Making 5Chapter 1: Big-Picture Pressures on Decision-Makers 7Making Decisions in an Ever-Changing World 7The ground shifting beneath your feet 8Assessing what these changes mean to you 11Embracing Uncertainty and Unpredictability 12Increase integrity and truth-telling 13Notice what is happening on the innovative edges 13Don’t limit planning to an annual task 14Make your decision-making process values-based 14Cultivate learning and curiosity 14Invest in your personal and professional growth 15Raising the Integrity and Ethics of Business Decisions 15Overcoming factors that lead to unethical decisions 16Designing a healthy decision-making environment 17Chapter 2: The Key Ingredients for Effective Decisions 19Distinguishing the Different Kinds of Decisions 19Strategic decisions 20Tactical decisions 21Operational and frontline decisions 21Identifying the Different Decision-Making Styles 21Recognizing the Workplace Environment and Culture as a Force 23Mapping your company on the innovation curve 23Accounting for company organizational structures 25Assessing the health of the workplace 30Developing the Decision-Maker: To Grow or Not? 30Knowing thyself 31Avoiding temptations that obstruct sound decisions 31Chapter 3: Company Culture and Decision-Making 33Recognizing the Importance of Company Culture 34Paying attention to invisible forces 34Assessing your company’s mindset 36Spotting addictions in company culture 37Creating High Performance Workplaces for Decision-Making 38Paying attention to long- and short-term focus 38Using smart design to speed up decision-making 39Paying attention to working relationships 42Assessing Risk and Its Impact on Decision-Making 43Understanding how humans perceive risk 43Working with risk in a complex world 46Part II: Knowing and Growing Yourself as a Decision-Maker 49Chapter 4: Growing Your Business by Growing Yourself 51Connecting Personal Growth to Effective Decision-Making 51Exploring vulnerability as a leadership quality 53Having compassion for the ego 54Tapping into emotions for effective decision-making 55Recognizing How Beliefs Influence Decision-Making 57Examining your beliefs: Do they limit your options? 57Understanding how you perceive insight, intuition, and vision 60Acknowledging hidden bias or prejudice 60Gauging Personal Comfort with Conflict and Ambiguity 62Using conflict to your advantage 62Understanding classic responses to conflict 64Chapter 5: Raising Self- and Organizational Awareness for Better Decisions 67Understanding How You Make Decisions 68Instinctual decision-making 68Subconscious decision-making 68Belief-based decision-making 69Values-based decision-making 70Values-driven decision-making 70Comprehending the Value of a Deeper Intelligence 71The link between your heart and your head in decision-making 71Putting this knowledge to work 72Reducing Stress to Make Better Decisions 73Manager, manage thyself 74Managing the manager 75Practical ways to reduce stress in working relationships 76Chapter 6: Learning from Mistakes and Unintended Consequences 79Engaging in Reflective Learning 79Identifying blind spots in the decision-making process 80Learning from decision errors and disasters 80Turning Hindsight into Foresight 81Monitoring implementation and assessing risk 81Foreseeing inadvertent effects of a decision 83Listening to feedback from key suppliers and customers 84Implementing other’s ideas wisely 85Stopping to see the big picture 86Overcoming persistent problems with procurement 88Building Character and Credibility through Mistakes and Failure 91Accepting personal responsibility 91Separating good judgment from judging others 91Communicating authentically 92Reinventing your self-identity 93Part III: Jumping In: The How-to of Decision-Making 95Chapter 7: Understanding Intuitive Decision-Making 97Getting the Lowdown on Intuition 98Defining intuition 98Unraveling myth from fact 98Knowing how intuition differs from impulse and fear 100Understanding the benefits of intuitive decision-making in business 102Understanding How Intuition Works 103Processing incoming data 103Forming patterns from cues 104Building Up Your Intuitive Powers 105Identifying your intuitive strengths – the mechanics 105Improving your intuitive intelligence 108Uncovering procedures that interfere with intuition 110Removing the risk of overwhelm 110Balancing the Rational with the Intuitive 111Chapter 8: Laying the Groundwork for All Decisions 115Reviewing the Essentials for Sound Decisions 115Identifying purpose 116Seeing ahead: Clarifying the endpoint 118Determining timing: Why now? 120Assessing commitment: Your own and your colleagues 124Calculating the risk and impact of doing nothing 126Deciding Who Decides 128Factoring in management style and working environment 128The buck stops where? Authority and responsibility 129Investigating Decision-Making Models 130Relaying top-down decisions: The command-and-control style 131Using consensus 132Building a Team for Participatory Decision-Making 134Chapter 9: The Nitty-Gritty: Walking through the Decision-Making Process 135Clarifying the Purpose of the Decision 135Identifying the reason for the decision 136Taking a tactical or strategic approach 136Taking the Blinders Off: Eliciting All Relevant Info 137Doing your research 137Gaining some distance to stay objective 138Paying attention to different perspectives 139Separating fact from speculation 140Including feelings as information 140Knowing when you have enough 141Sifting and Sorting Data: Analysis 142Conducting your analysis 142Critically evaluating your data 143Making assumptions intentionally . . . or not 144Establishing and weighing criteria 145Avoiding analysis paralysis 148Generating Options 150Avoiding the one-option only trap 150Broadening the option pool by tapping into others’ creativity 150Vetting your top options 152Assessing Immediate and Future Risk 153Identifying risks 153Considering people’s response to risk 154Mapping the Consequences: Knowing Who Is Affected and How 156Making the Decision 156Communicating the Decision Effectively 157Implementing the Decision 158Putting together your action plan 159Deciding what is important: Metrics 160Setting priorities 162Learning from the implementation process 162Decision-Making on Auto-Pilot: Intuition in Action 164Grasping intuitive decision-making 164Taking a closer look at intuition in different situations 165Chapter 10: Tackling Various Types of Business Decisions 167Visionary Decisions: Getting a Grip on Direction and Focus 167Strategic Decisions: Moving from Here to There 168Making high-level strategic decisions 169Applying strategic thinking to lower-level goals 170Adjusting your strategy as necessary 172Operational Decisions: Seeking Out Efficiencies 172Going to frontline employees for ideas 172Making operational decisions: Things to think about 174Financial Decisions: Raising and Protecting Your Cash Cow 175Securing financing 175Sustaining cash flow 176Avoiding the five most common financial errors 176Problem-Solving Decisions: Getting to the Root of Issues 177Uncovering and addressing the root cause 177Tackling problems creatively 179Making Partnership and Joint Venture Decisions 180Determining whether to pursue a joint venture or partnership 180Chapter 11: Exploring the Decision-Making Tool Kit 183Adopting an Approach That Gets Engagement and Results 183Differentiating between authority and power 184Powering up a more engaged workforce 185Engaging in Formal Decision-Making Methods 186Using negotiation to make mutually acceptable decisions 186Seeking consensus 187Using Participatory Decision-Making Tools 189The Gradients of Agreement tool 190Dot voting to gauge opinion and progress 193Visualizing consequences, relationships, and ideas: Mind mapping 196Chapter 12: Strengthening Relationships with Employees and Customers 199Improving Well-Being at Work 200From happy employees to loyal customers: Creating a ripple effect 200R.J. Allen Construction, an example 201Recognizing the Consumer as a Change Agent 203Keeping an eye out for trends 203Chatting up consumers 204Reconnecting Business to Customer Service 204Bridging the gap to connect to your customers 205Getting inside the customer’s head: Empathy mapping 206Using social media to obtain feedback 208Focusing on what’s important to the customer 209Promoting Communication with Customers and Employees 210Establishing intention and value 210Calculating the benefits of communication 212Setting goals for your interactions 213Delving into Information-Gathering Methods 214Tools and techniques for formal consultation 214Establishing informal information-gathering channels 217Part IV: Making Decisions in Various Roles 219Chapter 13: Becoming a More Effective Decision-Maker 221Upping Your Game: Transitioning from Area-Specific to Strategic Decisions 222Highlighting strategic decisions 222Avoiding the perils of micromanaging 225Moving from specializing in one area to working across functions 228Displaying Character through Decision-Making 230Mirror, mirror, on the wall: Taking a close look at yourself 230Using defining moments to build character 231Handling yourself when things go wrong 232Improving Your Decision-Making by Becoming a Better Leader 234Differentiating between leadership and authority 234Using your power for good 235Being a leader good enough to ask the tough questions 235Creating Safe and Stable Workplaces 236Adapting your management style 237Taking steps to improve the quality of the working environment 238Being the leader you expect to see in others 240Chapter 14: Making Decisions as a Manager 243Recognizing the Changing Role of Manager 243Embracing your role as change agent 244Adapting your management style 246Choosing Your Leadership and Management Styles 249Looking at leadership styles 250Using authority effectively: Different styles for different situations 251Dealing with unmet expectations 253Chapter 15: Making Decisions as an Entrepreneur or Small Business Owner 255Knowing What Makes You Tick 256Identifying your entrepreneurial qualities 256Gaining clarity on your values and philosophical foundations 257From Flying by the Seat of Your Pants to Putting Systems in Place 259Moving from multitasking to building a team 260Deciding how work gets done 261Staying aware of your decision-making process 262Taking Steps When the Thrill is Gone 264Step 1: Figuring out what you want 264Step 2: Ascertaining where your business is 265Key questions when you still can’t decide 266Part V: Applying Decision-Making Skills to Specific Challenges 267Chapter 16: Using Change to Achieve Personal Fulfillment 269Reinventing Yourself after a Setback 269Changing your mindset after a setback 270Taking the first steps to a new future 271Gaining Clarity on Your Passion, Purpose, and Direction 272Using a vision board to gain clarity 272Testing your commitment to a decision: Visualization 275Going my way? Choosing your path 275Strengthening Your Resiliency 277Assessing the state of your personal spirit 277Viewing your whole life as a lesson in leadership 281Chapter 17: Facilitating Participatory Decision-Making Meetings 283Clarifying Your Role in a Meeting 283Distinguishing among facilitating, moderating, and chairing 284Letting go of attachment to a specific outcome 286Meeting Preparation Basics 286Establishing the purpose of the meeting 286Identifying reasons to meet 287Putting together a bare-bones plan 287Choosing a formal or informal meeting structure 288Putting Together a Meeting Plan for Complex or High-Stakes Decisions 289Step 1: Stating the overall goal and metrics 289Step 2: Putting together a framework for the meeting 290March 25, 2015 5:26 PMStep 3: Assigning tasks in preparation for the meeting 290Step 4: Structuring the meeting with a meeting plan 291Running a Productive Meeting 293Getting on the same page with an overview 294Keeping the meeting on track: Dealing with group dynamics 295Tools to Help You Facilitate and Manage Meetings 299Structured round table: A tool for gathering perspectives 300Visual and group collaboration tools for meetings 300Chapter 18: Making Decisions about Partnerships and Joint Ventures 305Understanding the Different Partnership Structures 306Looking at partnerships 306Examining joint ventures 306Determining Mutual Benefit 307Thinking through partnership potential 308Mapping out gains and value in joint ventures 309Assessing the fit 312Finalizing the Agreement 316Communicating Productively during the Venture 317Focusing on trust 317Using conflict to advantage 319Testing Trust, Courage, and Cooperation When the Going Gets Tough 320Chapter 19: Setting Ethical Standards 321Defining Business Ethics 321Looking at ethics in business 322Falling from grace: Unethical business practices 323Understanding Pressures That Lead to Unethical Decisions 325External pressures: The changing nature of business 326Internal pressures: Working conditions and relationships 327Eliminating conditions that lead to ethics breaches 328Setting Formal and Informal Standards 330Developing a formal code of ethics 330Establishing an informal code 332Common Concerns: Dealing with Supply Chains and Health and Safety 335Reducing workplace hazards 336Bringing the supply chain up to ethical standards 337Part VI: The Part of Tens 339Chapter 20: Ten Tips for Decision-Making in Uncertain Situations 341Check Assumptions 341Stretch Out of Your Comfort Zone 342Ask Profound Questions 342Learn from the Past 343Listen Deeply 344Shift Perspectives 344Move From Inertia to Action 345Pay Attention to What Your Heart Tells You 345Embrace the Unpredictable 346Work with Risk Differently 346Chapter 21: Ten Ways to Improve Decision-Making 347Find Your Inner Calm 347Know When to Follow Plans and When to Co-create 348Keep Your Mind Nimble 348Focus on the Mission 349Innovate through Disruption 349Tap into Your Intuition 350Learn from Mistakes 350Keep an Open Mind 351Balance the Intuitive with the Rational 351Pay Attention to the Workplace 352Chapter 22: Ten Secrets behind Ethical Decision-Making 353Employees Feel Respected and Happy 353Relationships Are Built on Trust 354The Focus Is on Collective Achievement 354The Right Things are Rewarded 355Minimum Compliance Isn’t Enough 355Good Character is Important 355Everyone Leads 356Principles and Values Guide Action 356Attention Is Given to Workplace Culture 357Trust Is the Underlying Value 357Index 359