Published - 2023/06/21
What do we mean by "Better Decisions"?
It’s been a busy six months and as we edge towards Midsummer here in Sweden, I was reflecting on some common threads from recent and ongoing projects. Whatever the subject, one question that often comes up is about our use of the phrase “better decisions”: What do we mean in practice? The term is subjective and depends on the context, but put simply, we’re talking about making choices that result in a better outcome than staying on your current path or one that you might choose without being well informed.
We suggest five main ingredients for better decision making:
Better information, which leads to an enhanced understanding of a situation, through more data or clearer insight (into customer demands, for example). The better the information, the more accurate your predictions are likely to be.
Objective evaluation, because better decisions are usually the result of evaluating options as objectively as possible, without undue influence from emotion or bias. This requires critical thinking and sometimes the input of others to balance any personal preference.
Understanding consequences, because to make better decisions, we need to understand the potential consequences of each option, both short and long term. Consider the effects a decision could have on all involved parties and weigh these potential outcomes against each other.
Aligned goals and values, since decisions that align with goals, values and priorities are usually better. For example, a decision that helps achieve a long-term goal or aligns with personal or organizational values is likely a better decision than one that goes against these.
Prudent risk management, because better decisions often involve assessing the risks associated with each option and opting for the one that offers a favorable balance between potential gain and acceptable risk.
Remember: A better decision doesn't always mean it's the one that leads to the best immediate outcome. It could also be the one that leads to the most learning, personal growth, or future opportunities.
I hope this gives you some food for thought over the Summer and look forward to sharing our ideas again in September. Until then, we wish you all a relaxing and rejuvenating break, wherever you are.