The action or process of making an important decision” is known as decision-making. The consequences of some decisions are mild, e.g., the restaurant you choose for your lunch regarding taste and price, etc. Contrarily some decisions are essential, and their consequences affect you in the long run! E.g., the career you choose for yourself or a business deal requiring a significant investment, etc. If you want to make the best decision for yourself, follow this simple 5 step decision-making model.
- Identify the need for a decision.
- Determine the goal or outcome.
- Identify the alternatives or actions with the benefits and consequences of each step.
- Decide which action to implement.
- Evaluate the action.
If you are unsatisfied after the fifth step, repeat this process and think of the best possible solution!
Now we will discuss the model mentioned above in detail. So you would know how to enhance your decision-making skills for essential decisions!
Identify the need for a decision to grab a paper or anything on which you can write, e.g., laptop, tablet, etc.
Be realistic; write down what you want? E.g., if you wish for money at that time, then do write it down exactly “I want money this time.” Don’t write it like, “I want to follow my passion which will help me generate money.” In short, write down your exact need for that time!
There could be multiple reasons. Write down every reason and then choose the primary one! This is the first step of the decision-making model; if it goes wrong, there are more chances of a bad decision!
Determine the goal or outcome
Write down the exact goal you want to achieve.
Example
Money is your need.
Your goal is to generate $2,000 within a month.
Identify the alternatives
Now, you know your need and the goal you want to achieve. In short, it is like, you have understood the question correctly. So, there are more chances of the most relevant and optimal answer!
Think about the actions that could be taken in this scenario. But, you must consider your resources, knowledge, and time availability.
Decide which action to implement
Realistically, write down the pros and cons of every action. Most importantly, conduct the cost/benefit analysis and access the risk-reward ratio.
Example
Suppose you have to return $2000 to a friend within 30 days. You have two options.
- Business
- Job
You have a business mindset. A business idea is good too, but there are 90% chances of generating a profit of $500 in the first month. Contrarily, for the job, you have to go to another city, but you will be able to return the loan within the month.
So in this scenario, you should choose the action having fewer risk factors! Well, it is not a hard and fast rule, and it may vary from person to person as we all have different strengths and weaknesses!
Evaluate the action
This is the final step of the decision-making model. Evaluate the action you have chosen.
- Are you satisfied?
- Have you considered every aspect?
- Is it legal?
- Are you ready to face challenges that specific action demands?
- Is there no other better option?
- Do you have plan B, or are you prepared for any consequences?
Brainstorm and answer above mentioned questions.
Conclusion
Above mentioned 5-step decision-making model will help you in making the right decision. Don’t rush into making any important decision in your life. Take your time and analyze the situation realistically. I hope you will be able to choose the best solution in this way.
