7 Decision-Making Frameworks to Deal with World’s Complexity

framework of decision making

However, it’s impossible to compare them and select the best one as they all serve different purposes and suit different situations. When a table is created and all options are discussed, a team makes a decision and freezes it for 24 hours. It helps to release tension, check the data again, and weigh all the consequences of a selected solution. Xanax for decision-making resembles a simple chart with the pros and cons of a certain solution but has a slight modification that changes the perspective. Using this decision-making framework, you need to consider each option and list their Benefits, Costs, and Mitigations. The additional dimension (Mitigation) simplifies decision-making by showing how to make each decision reversible, if it’s possible, of course, or how to neutralize the costs in advance.

While not the subject of this paper, it’s a major force in organizational decision-making culture and process, and there are many deep references on this front to evaluate. The activities clustered under “Decision Support” build off the “Decision Design” steps by evaluating designed decisions, and clearly identifying where there are points of integration for data and/or analytics. Equally, it invites an analysis of the decision’s design for the purpose of clearly identifying areas of uncertainty that may or may not be resolvable.

Google’s Dr. Cassie Kozyrkov, and her role as a “Chief Decision Scientist”

It starts with a basic chart, with the two (or more) options you’re deciding between at the top. Down the left-hand column, you have benefits, costs, and — uniquely — mitigations. This also makes them a useful rubric for hiring new people and assessing performance. Do candidates have aptitudes or experiences that align with your operating principles? Do existing employees execute their responsibilities in a way that upholds them? You should bake your operating principles into both your hiring and performance review processes to make them useful and keep them top of mind.

Looking at the decision you’re about to make and deciding how important it is or whether it’s important at all is a rational thing to do. It’s really a Russian doll kind of thing to think about how you think about problems. If you for any decision are able to approximate the skill vs. luck continuum for the problem at hand, you will make better decisions than those who think improperly about those issues or who don’t think about them at all. But if your decision-making skills are not appropriate for the problem at hand, it doesn’t help much. Rational, as opposed to perfect, is the right word here because a decision should not be judged solely on its outcome. For every decision, there’s only one outcome, no matter if that outcome is unlikely.

DECIDE framework

Of course, the issues Instagram applied the RACI model to were slightly different. “We used it for our most important initiatives and we actually would always start out by defining the ‘A’ first. For example, when trying to figure out which database architecture https://www.vizaca.com/bookkeeping-for-startups-financial-planning-to-push-your-business/ we were going to use moving forward, we singled out our CTO as the accountable decision-maker,” says Everingham. Sometimes through the conversation you end up adding a Column C or D because new options or ideas emerge with different or fewer risks.

  • Often there will not be an answer that pleases everyone and so it is our responsibility to ensure that our processes for decision-making are fair and legitimate.
  • Lorien Pratt’s book Link does a great job of presenting CDD’s as a scaffold for integrating data and analytics.
  • If you are setting up a company, having a decision-making framework will lighten the burden of decision-making on the top management.
  • Leaders in this context need to probe first, then sense, and then respond.

Note that even with a good outcome, the decision process may have been bad. A decision retrospective provides us with an opportunity to introduce continuous improvement into the decision-making framework. When using the frameworks to make ethical judgments about specific cases, it will be useful to follow the process below. In many situations, all three frameworks will result in the same—or at least very similar—conclusions about what you should do, although they will typically give different reasons for reaching those conclusions. The Duty Framework In the Duty framework, we focus on the duties and obligations that we have in a given situation, and consider what ethical obligations we have and what things we should never do.

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