Tips To Make Better Decisions

One thing all of us around the world share is that we've all made bad choices. Find an individual who hasn't made bad decision and I'll demonstrate someone who's either lying or who is avoiding taking a decision at all costs. Making good decisions is a skill that needs to be developed as with any other. As someone who has worked with CEOs day in and day out I'm aware that not all leaders are equally in terms of their ability to make decisions. Nothing will test your leadership mettle more than your ability to take decisions.

What makes leaders fail? They make bad choices that result in bad decisions. Sometimes they make bad decisions that result in more poor ones. The two aspects of leadership and decision-making cannot be distinct. The outcomes of a leader's choices and decisions can be the difference between success or failure. The fact of the matter is that the top executives who ascend to the top of the ladder are mostly because of their capacity to consistently make good decisions. While it can require years of decision-making climb to the top, it sometimes takes just one bad decision to make it to the bottom. As much as you may wish it wasn't so in the world of being a leader, you're only the best you can be based on your previous decision. Look at this site to get a useful source about random alphabet.

The truth is that even leaders make mistakes occasionally. Reflecting on the bad decisions I've made, I see that it wasn't due to my inability of making the right decision. However, I did not make use of a sound decision-making process. Your instincts can only lead you to the next level in the world. Anyone who does not use a solid decision-making framework, or is prone to errors, misinformation, manipulation, impulsivity, or some other detrimental element will eventually fall prey to these.

The first step to understanding how to make great decisions is learning how to synthesize the overwhelming quantity of information that leaders have to manage on a daily basis, while making the best possible decisions quickly. It is easy to improve how you filter different inputs and manage the huge amount of data.

Understanding the existence of a hierarchy of information exists is critically important in making informed decisions. News Flash: Not all inputs should be equally weighed in the decision-making process. If you develop a qualitative as well as quantitative filtering system to aid in your decision making process, you can make better choices in less time. The hierarchy of knowledge is as follows:

Gut Instincts

It's an emotional and/or experienced filter that usually lacks the solid support of an analytical approach. However, it is sometimes all a person requires to make a choice without the assistance of other making decisions. Even with more sophisticated analytics, intuitions could still be an effective instrument to test the rationality or bias of other sources. The most important thing to remember from this is that your intuition is a skill that can be refined and improved. My advice is to be able to improve your discerning skills.

Data

Raw data is made up of different facts, statistics or random inputs, but they hold no value. Drawing conclusions from raw data could lead to poor conclusions based on insufficient data sets.

Information

Information is described as an ever-changing or comprehensive data set. The information is an amalgamation of data where meaning and context have been added to disparate facts which enable a deeper analysis.

Knowledge

Knowledge is information which has been refined through research to ensure that it has been assimilated, tested and/or validated. The most important thing is that knowledge is actionable with high levels of accuracy due to the fact that proof of the concept is present.

Although many people treat theory and opinion as fact, they are not one and the same. Many smart executives have blurred the lines between fact & fiction, resulting in poor decisions when made under pressure or in the absence of the right decision-making process. While decisions made at the data or gut level are more efficient but they also carry more risk. While decisions made at the information level can provide greater risk management but are not as secure as ones made based on actionable information, they could still be dangerous.