Information Gathering

Before starting on the process of making a decision, all relevant information needs to be gathered.  If there is inadequate information then a wrong decision might be made.  If there is too much irrelevant information the decision will be difficult to make.  There is a need for up-to-date, accurate information on which to make decisions.  Information needs to be gathered so that an informed decision can be made.  The amount of time spent on information gathering has to be weighed against how much you are willing to risk making the wrong decision.  In a group situation, such as in a business or voluntary organisation, it may be appropriate for different individuals to research different aspects of the information required, for example different people might be allocated to concentrate their research on costs, facilities, availability, and so on.

Weighing up the Risks Involved

One key question is how much risk should be taken in making the decision? Generally, the amount of risk an individual is willing to take depends on:

• The seriousness of the consequences of taking the wrong decision.
• The benefits of making the right decision.
• Not only how bad the worst outcome might be, but also how likely that outcome is to happen.

It is also useful to consider what the risk of the worst possible outcome occurring might be, and to decide if the risk is acceptable.  The choice can be between going 'all out for success' or taking a safe decision.

Deciding on Values

Each individual has his or her own unique set of values - what they believe to be important. Many people decide to buy a car for themselves but different people buy different cars based on their own personal values.  One person might feel that price is the most important feature, whereas another person might be more concerned with its speed and performance.  Others might value safety, luggage space or the cars impact on the environment.

Depending on which values are considered important, different opinions may seem more or less attractive.  If the responsibility for a decision is shared it is possible that one person might not have the same values as the others.  In such cases, it is important to obtain a consensus as to which values are to be given the most weight.  It is important that the values on which a decision is made are understood because they will have a strong influence on the final choice.

People do not make decisions based on just one of their values.  They will consider all their values which are relevant to the decision and prioritise them in order of importance.

Weighing up the Pros and Cons

It is possible to evaluate the pros and cons of each possible solution/option by considering the possible advantages and disadvantages.  One aid to evaluating any solution/option is to use a 'balance sheet', weighing up the pros and cons (benefits and costs) associated with that solution. For example, a small business that regularly hires vehicles from an external company might consider buying a vehicle for their exclusive use. The business could list the pros and cons of the purchase in the following way:

Pros	Cons
Saving on hire charges	Cost of purchase
Would make it easier to organise staff travel	Potential driver(s) could require training
Will always be available	Insurance and maintenance costs

Having listed the pros and cons, it may be possible to immediately decide whether this option is a viable.  However, it is also possible to rate each of the pros and cons on a simple 1 to 10 scale (with 10 high and 1 low):

Pros		Cons
Saving on hire charges	9	Cost of purchase	6
Would make it easier to organize staff travel	7	Potential drivers could require training	4
Will always be available	6	Insurance and maintenance costs	8
Total	22	Total	18

In this case the cons (disadvantages) have the lower score while the pros (benefits) are higher and purchase of a car is therefore a strong possible choice.

In scoring each of the pros and cons it helps to take into account how important each item on the list is in meeting values.  Thus, for example, if the most important value was the potential saving, then the fact that a particular car has high insurance and maintenance costs will increase its score on the con side.  This balance sheet approach allows both the information to be taken into account as well as values, and presents them in a clear and straight forward manner.

Making the Decision

There are many techniques that can be used to help in reaching a decision.  The pros and cons method is just one way of evaluating each of the possible solutions/options available.

There are other techniques which allow for more direct comparisons between possible solutions.  These are more complicated and generally involve a certain amount of calculation.  These can be particularly helpful when it is necessary to weigh up a number of conflicting values and options.

For example, how would you decide between a cheap to buy but expensive to run car and another more expensive car, that is more economical to keep on the road?

Intuitive Judgements:  In addition to making reasoned decisions using the techniques shown above, in many cases people use an intuitive approach to decision making.  When making a decision many influences, which have not been considered, may play a part.  For example, prejudice or wishful thinking might affect judgement.  Reliance is often placed on past experience without consideration of past mistakes.  Making a decision using intuition alone should be an option and not done merely because it is the easy way out, or other methods are more difficult.

Intuition is a perfectly acceptable means of making a decision, although it is generally more appropriate when the decision is of a simple nature or needs to be made quickly.  More complicated decisions tend to require a more formal, structured approach.  It is important to be wary of impulsive reactions to a situation and remember to keep a record of the decision for future reference, no matter whether the decision was made intuitively or after taking a reasoned approach.

If possible, it is best to allow time to reflect on a decision once it has been reached.  It is preferable to sleep on it before announcing it to others.  Once a decision is made public, it is very difficult to change.

Summary

Decision making is the act of choosing between a number of alternatives.  In the wider process of problem solving, decision making involves choosing between possible solutions to a problem.  Decisions can be made through either an intuitive or reasoned process, or a combination of the two.  There are usually a number of stages to any structured decision making.

We have outlined one simple method, which involves: listing all possible solutions; setting a time scale; gathering relevant information; weighing up risks; looking at values and then weighing up the pros and cons of each alternative before making the decision.  There are also more sophisticated decision making techniques available. However, it should be remembered that no decision making technique should be used as an alternative to good judgement and clear thinking.  All decision making involves individual judgement, and systematic techniques are merely there to assist those judgements.