About decision-making: 'good enough' is the new optimal

Decision-making has been a subject of management and leadership education for ages. From jobs advertisements to performance evaluations, an individual’s ability to make decisions is an important factor. And it goes beyond that – it is not only about making the decision, it is often about making a good decision, and timely.

We encounter decision making moments every day, in personal and professional lives. From what to wear, what to eat, when to change careers, or when to start a family. But what is a good decision and why is it hard to make?

A good decision

What exactly is a good decision is difficult to pin down. We often judge the quality of a decision based on the quality of its outcomes, but this approach is narrow and deceptive at times.

Let’s say a couple is planning a vacation. Their goal is to have an enjoyable holiday, at a minimum budget. They do their search, carefully identify potential destinations, weighs the pros and cons of each destination, and finally settles on a trip to Zanzibar. On the day of travelling however, the weather is bad, making their boat ride a nightmare. They get stuck in their hotel for days when they arrive. Clearly, their holiday was not good. They start regretting or worse blame each other for not choosing another destination.

But the bottom line is that although the vacation was a bad experience, the decision-making process was good. The outcome of their decision to go to Zanzibar - like any other decision - was influenced by other factors outside their control, and they couldn’t predict them with the information they had when making the decision. As such, a good decision is an informed decision, which happens when available information about the various options is gathered and weighted, and the final choice includes a consideration of the values of those who the decision impacts.

Consider an example where a bank manager who gets fired for authorizing a fraudulent check that causes losses to the bank. Why does the manager get fired? Because he caused the bank losses? In some cases, the answer is yes, and this is a decision trap – focusing on, and acting based on outcomes of a decision, rather than the process followed in making the decision. Ideally, the manager should be fired based on whether he sufficiently used the information he had when making the decision, and whether he followed the correct processes.

This may help revealing an information gap or a process loophole that will need fixing to prevent further incidents, and it would only be fair for the manager to see and acknowledge that he did not explore all possible options to identify the fraudulent cheque before approving it – a learning opportunity for both parties.

Decision traps

Decision traps affect personal and professional lives. They lead to indecisiveness or poor decisions. A good way forward to get unstuck from decision making traps is to learn to make and love a good decision, and be willing to live with it. This is because the quest for a perfect decision is at best futile. The crux is to learn the process of making a good decision, within the limits of available information and time. A perfect decision may exist; but it is not based on its outcomes but the process followed in making it. And in any case, a good decision, rather than a perfect decision, is the new optimum. Indeed: “the risk of a wrong decision is preferable to the terror of indecision.” – Maimonides (1138-1204)

Way forward

In order to make good decisions, the main skill to horn is increasing the quality of the decision-making process, rather than being bogged down with worry about the outcomes, or disappointment with bad outcomes. This line of thinking is healthy as it allows for loopholes that could hamper decision making processes to be identified and addressed. At a personal level it requires an open mind to learning about pros and cons of potential decisions, and willingness to explore alternative sources of information to support or refute our decisions.

Ms Kimaro writes about careers, leadership, personal development and issues affecting youth and women.