How to improve our decision-making skills

Decisions are the most impactful factor in our lives. Our decisions make our lives, so one has to be really careful while taking a decision. So the question is how can we improve our decision-making skills. So let’s see 6 different methods that help us to improve our decision-making skills.

1) SWOT ANALYSIS?– SWOT analysis is the most powerful tool used by industry experts to take decisions. This will help you to identify your weaknesses, your opportunities and the thread in the decision.

Make 4 boxes,

1. Strength
2. Weakness
3. Opportunity
4. Thread

2). THE TRIANGLE MODEL?– Normally we expect the things to get done perfectly, but the triangle model explains to us that nothing is perfect and sometimes expecting perfection, at least at the beginning is kind of impossible, so you don’t have to wait too much for perfection and if any of the factor is okay then you should go with the idea.

Let's suppose you wanted to make product you normally aspect following things

1. It should be good quality,
2. It should be cost-effective,
3. It should be built as fast as possible.

If you go and see that all this triangle will never meet, so don’t wait for perfection and whenever you feel one of the factor is complete, just go for it.

3). THE STOP RULE –?many times, people don’t know where to stop and if you stop at the right time you probably save yourself from the Hugh loss. People in the share market use the stop loss method, and it is the same method you can use in your daily life or while taking a decision.

In 1935, Gerald Lobs was a legendary investor who made a simple but powerful model which is called the stop rule. It says that if the percentage of your investment decreases more than 10%, then immediately sell your stock and come out of that.

We can use the same rule in our daily life. Have a stop rule whenever there is a risk factor and save yourself from a big loss.

4). CHOICE OVERLOADED?– In the year 2000 Sheena Iyengar did an experiment and produced the result and her result gave opening to many professionals.

For the experiment, she set up a small stall in a supermarket. On the first day, she came up with 6 different varieties of Jam. And on the next day, she turns up with 26 different varieties of Jam.

On the first day when she has 6 different varieties, around 40% of people appear on her stall and out of them, 30% actually by her product. Once again, d where she has a 26 different varieties, around 60% of a crowd appear on her stall but only 2% of them actually by her product.

This rule teachers that don’t overloaded your choices and don’t confuse your customers or buyer. Sometimes, giving a lot of options will confuse your buyer or customers and in the stage of confusion they will not be able to make a decision. Just have a fair amount of choice, not too much less, not too more.

5). THE EISENHOWER MATRIX –?Sometimes we have a lot of work and if we are not able to do the right things at the right time, we normally lose opportunities. Sometimes we are two confused about a lot of work, what to do first and what next.

Eisenhower was an American military officer and statesman who served as the 34th President of the United States from 1953 to 1961. He was very well known for his time management, and he produced a theory that is called the Eisenhower matrix.

It says that divide your work in four different categories.

1. No urgent, no important – so then add all the tasks in do it later category.
2. Important but not urgent – this is important, so you have time to plan for it.
3. Urgent but not important – delegate it to someone else
4. Urgent and important – all this is very urgent and important, so do it now.

6). HERSEY BLANCHARD MODEL?– Paul Hersey and Ken Blanchard created a situational leadership model. This model helps you to change your leadership skills according to the situation.

According to this model a leader has to face 4 different situations, and they have to react according to the situation.

1. Instruction mode : At this time, your employee or your subordinate have very high energy but have very little experience at this time. You have to give them proper instructions to get things done.
2. Coaching mode – sometimes your employee or subordinate have good expertise but have low energy, here you have to walk as a coach. You should have to open two – ways of communication and give coaching in the right direction and get things done.
3. Supporting mode – sometimes your employee or subordinate has high expertise but still needs your support to get things done, so you have to come up in the role of support.
4. Delegation mode – sometime your employee or your support in it has expert level of knowledge, and they don’t need your support here as a leader you have to delegate the work and create a leadership under you. This will give a boost to them, and you can keep their morals high and get things done.