The Da Vinci Institute for TechnologyManagement

LEONARDO PROGRAMME (LEO 14)

PHD

POST MODULE ASSIGNMENT

For

Problem Solving, Creative Thinking and DecisionMaking

11 June 2012

0

6070

A Horton

Table of ContentsIntroduction.................................2The decision Making Process..................3Framing Decisions and viewing them from a positive Perspective.........................3Positive Language as a Decision making Tool. .4Decision Making, which will deliver Workable solutions....................................4Decision Making - Psychological Perspective. .5Decision Making as a Tool for Creating Better Outcomes or Different, more desirable results 7Basic linear Decision Making Model...........7Making More Complex Decisions................8An Outcome Focused Approach..................8Process Focused Approach.....................8Making Decisions is a dynamic process........8Pre-Decision Stage...........................9Partial decisions...........................10

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Final Decision Stage........................10Post-Decision Stage.........................11Turn Problem Solving into Decision Making and Workable Solutions..........................13Effectively analysing and Utilising Data to Make Decisions..............................14Understanding How Your Brain Manages Data. . .14Conclusion..................................20References..................................20

IntroductionFirstly I want to define my reason for choosing to producethis paper around the decision making process, rather thanusing what I refer to as negative language, namely the phrase“Problem Solving” to describe something that requires us toevaluate an event or events, which have occurred. The eventitself is not the issue; it is merely the observer, who findsthat the event is not aligned with the outcome they expected. My hypothesis is that, when making any decision, our objectiveis not to “solve a problem”, it is rather to try to get adifferent or more positive outcome. The reason we want adifferent or better outcome is not because of the eventitself, but rather because we have interpreted and articulatedthe event, from our unique perspective and have found that theevent does not match our unique needs, circumstances orexpectations at that moment in time. The evaluation of anycircumstances is made from the observers perceptive and isinterpreted according to their unique needs.Working with the concept of problem solving, introduces anumber of challenges for me. I believe that what we thinkabout, we most certainly, through our thoughts and actions,eventually bring about. So the very act of viewing somethingas a problem causes the observer to engage in negative thought

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processes. These negative thought processes sees themapproaching any event which has occurred from a negativestandpoint. Where they view the event, as something they needto overcome, rather than simply an event, which has occurred,which is not aligned with the outcome they want to achieve.

The decision Making Process When we first tackle the decision making process, we firstutilise superficial information to start the reasoningprocess. We use word associations and syntactic structures toinitiate the process of meaningful reasoning. It is for thisreason that I introduce positive word associations, into thedecision making process as early as possible. When someone isexposed to negative language, such as the “necessity toProblem Solve”, rather than “make new positive decisions,which will help them to achieve better results”. Their firstresponse to the negative language, as a result of the negativeimpact made by the initial superficial information received,is to feel overwhelmed and their reasoning ability iscompromised.Since I have introduced this more positive approach to myclients, I have observed a remarkable improvement, in not onlythe outcome they manage to achieve in the end, but have seen areduction in the perceived stress levels they feel. After myclients made this shift, where they no longer view any changesthat they need to make or events, which are not aligned withthe outcome they want to achieve, as problems. They removethe negative connotation associated with overcoming problemsand instead allow themselves to operate from a far morepositive position. This subtle shift, allows them to approachany event, which they want to change from a far more positiveperspective and they see any changes, which they need to make,as merely a set of different choices or a few new decisionsaway. This subtle shift, will allows them to operate from amore positive position.

They feel far less stressed as they no longer need to overcomeanything. All they need to do is make a few calculated and

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focused, different decisions or choices and the outcome orresult will change.

Framing Decisions and viewing them from a positive Perspective My experience has shown that once you make this shift awayfrom viewing any undesirable result, as a problem you need toovercome. Instead you see it as an event which is not alignedwith the outcome you want to achieve, you immediately removethe feeling of overwhelm and move into a proactive position,where you feel empowered. It is obviously far easier to makemeaningful, appropriate decisions, when you are operating froma positive modality, where you feel underwhelmed. Rather thanfrom a pressured position of overwhelm. It is obviously betterto approach the decision making process from a positive place,rather than from a place where you have conjured up negativeimages, as you visualise yourself, in a place where you needto tackle a problem, which needs to be overcome..Change the way you look at any events, which occur and theevents will change from being undesirable into something,which offers you a greater possibility of creating a desirableoutcome Carl Jung eloquently set forth that the greatestproblems in life cannot always be overcome, they can beoutgrown. Empower yourself to utilise positive decision makingas a means to solve challenges rather than looking for ways to“SOLVE PROBLEMS”. Making different, more positive decisionswill prompt you to look at things in a more healthy andobjective fashion.

The ability to explore our world, understand how the eventsand changes, which occur, affect us and then to analyse allrelevant data and come up with a workable solution, is one ofthe most important cognitive activities any businessprofessional engages in on a daily basis. In fact the solepurpose of many people in many organisations is purely tosolve challenges, make different better decisions and come upwith workable solutions.

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Positive Language as a Decision making Tool

I have observed a remarkable improvement in all my clients’dispositions, attitude and levels of inspiration, when I haveintroduce them to a framework, which focuses on utilisingpositive language, to describe any challenges they may beexperiencing. I have found it far more beneficial to focus onpositive terms like “Decision Making, which will deliverWorkable solutions” rather than “Problem Solving”

Decision Making, which will deliver Workable solutionsI will be exploring the decision making process from a numberof different perspectives.

I will examine decision making from a psychologicalperspective, where I will examine the individual decisionin the context of the needs of the individual, theirpreferences and the values they seek.

I will also provide a cognitive perspective, in which wewill explore practical ways of providing individuals witha continuous process, which will be integrated into asystematic approach, which will allow the person makingdecisions to interact with and effectively utilise, thecrucial data necessary to make decisions.

My goal is to also explain the decision making processfrom a normative perspective, where we will explore thedecision making process from a logical or process drivenperspective and provide a method of systematically makingmeaningful decisions. This systematic approach can beviewed as a decision making loop, in which the decisionmaking activity is only terminated, when a satisfactorysolution is uncovered and a workable solution is definedwhich can be put into practice. The decision makingprocess is a looping on-going process in which relevantor meaningful data is examined and explored, usingrational and irrational thought and then utilising thisas a basis for reflection, a workable solution is foundbased on tacit assumptions, made by utilising the data.

The focus of this paper is not on the unconscious decisionmaking process, we engage in on a daily basis, but rather on

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the logical decision making process required to create thecircumstances necessary to succeed in the complex businessenvironment. My objective is to provide a system, in whichknowledge, experience and only the required data is utilisedto make informed decisions.

Decision Making - Psychological PerspectiveWe are a very complex species, with an incredible ability toreason, envision and compare. When we need to make anydecisions, we can either use deductive inference, where theevidence guarantees the absolute truth of the conclusionreached about the required decision. Or like in most caseswhere we need to make decisions, in a business environment,the reasoning we utilise, depends on conditions, whereuncertainty plays a major role in the decision making process.In this case the reasoning takes on the form of inductiveinference, where the evidence or data only provides a verylimited amount of support for the decision. The decision making process, where we are attempting toachieve a different or improved outcome, is seldom, if everpossible utilising deductive inference. The very nature of thedecision making process, within any business environment,requires the use of inductive inference, where the inferentialsteps, required to reach a meaningful decision are never basedin certainty. When making any new decisions, which will resultin better outcomes, the new more desirable outcome is bestachieved by modelling the situation, using an appropriatemethod to assess the available data and then after assessingthe possible consequences of each course of action, ameaningful decision can be made.Predicting the best outcome or deciding on the best course ofaction is dependent on causal reasoning. Each possible outcomeor effect is measured against the various options available,(causes), utilising the available data to guide the choice andthe final decision made. It is also possible to makepredictions about the possible outcome, by comparingpredictions and explanations using analogical reasoning. Thisis a process whereby the relationship between one concept, iscompared to another one, which is mapped from another domain.

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For example: Helping students to conceptualise the complicatedprocess of particle motion, can best be taught, by utilisingan analogy or comparison to the solar system. This process ofunderstanding relies on utilising a familiar concept to helpthem understand and interpret more complex processes. There are two major trains of thought around the reasoningprocess. One school of thought proposes that our mind consistsof specialised modules, which are relatively localised andthat any reasoning is restricted to certain encapsulated partsof the brain. I do not support this view and instead am aproponent of the Dual-process system, in which reasoning isthe function of both an associative system and a rule basedsystem. I support this system, because it utilisesassociation, similarity and memory to produce decisions, inthe associative system, which is combined with the rule basedsystem, in which reasoning is done deliberately andconsciously. The associative system functions really well, when snapimmediate decisions are required. The rule based system isvaluable, when more time is available and there is more dataor external information, which can be used in the decisionmaking process. The rule based system for making decisionsrequires the use of the prefrontal cortex or the newest partof the human brain to function effectively. Simple Flow Diagram to Understanding The Decision MakingProcess

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Undesirable Event

Uncertainty

Explore data

Model Situation

Set Goals

Assess Consequences

Make Decisio

n

Evalua

te Out

come

Decision Making as a Tool for Creating Better Outcomes or Different, more desirable results

Basic linear Decision Making ModelDecision making as a tool for creating the desirable outcomesyou want, is essentially a process of analysing a finite setof alternatives, in terms of some carefully chosen evaluativecriterion. The evaluative criterion utilised may either beanalysed in terms of possible benefits or cost. The next stepin this looping process is to evaluate all the alternatives ina subjective and reflective fashion, utilising the carefullychosen supportive data as a guide and then based on theoutcome of the analysis, the most desirable alternative isselected.

Workable Solution

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AnalyseAlternatives

EvaluationCriterion/

Only RelevantDataBenefits

or Cost

Subjective &reflectiveReasoning

New Positive Unsatisfactory

Model Situation

Set GoalsExplore A lternativ es

Assess Consequences

This simple model is effective to assess simple challenges andmake new set of decisions, which will result in better or morepositive outcomes. This model requires the selection of thebest alternative based on single or linear input criterion.This model relies heavily on extensive experience on the partof the decision maker.This model will not be very effective if the goal is to make adecision about a more complex issue, such as determining therelative total priority for a number of differentalternatives. An example of this type of complex decisionmaking process may require the decision maker to compare anumber of different projects competing for a limited fundingresource. In this case all the criterion needs to beconsidered simultaneously. These types of decision makingprocesses are best solved using a more complex model.

Making More Complex DecisionsWhen embarking on a more complex decision making process it isno longer simply a process of selecting the most desirablealternative, it becomes a dynamic process, which requires theinterpretation of many interrelated stages. The model I havefound most suitable and which delivers the most consistentresults, is one that utilises three stages, namely, pre-decision, decision and post decision to guide the decisionmaking process. I have decided to ignore decision trees as a possiblealternative for inclusion in this paper, as I feel that theyare limited, due to their logical and structural orientationand are best suited for dealing with simple problems. They aremost certainly not adequate for dealing with more complexdecisions. When making more complex decisions there are essentially twobasic approaches to modelling human decision making.

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Assess my needs Interpret Event

An Outcome Focused ApproachThis approach assumes that, if the decision maker is able tocorrectly predict the desired outcome from the available data,then the decision maker understands the decision makingprocess. The focus of this approach is thus centred on thepremise that the decision maker is able to correctly predictthe outcome of any decision which they make. The decisionoutcome and its correct prediction are the focus of thisapproach. When utilising this approach the decision maker willbe asking questions, which would include what and when, ratherthan how.

Process Focused ApproachThis approach assumes that if the decision maker understandsthe decision making process, they are then equipped toaccurately predict the outcome. This is an experientialapproach and assumes that as you learn to make good decisions,you equip yourself with new skills about how good decisionsshould be made.

Making Decisions is a dynamic processWhen making decisions about more complex issues. The decisionmaking process is a dynamic process of searching for relevantinformation, on a path filled with detours, enriched withfeedback, which is found by gathering and discarding relevantinformation along the way. This process is fuelled byuncertainty and conflicting concepts, which when analysed andassessed, result in an effective or meaningful decision. The challenge when making any decision and ensuring that thedecision is valid and meaningful, is to effectively shiftthrough only the right information, some of which is hazy andsome of which is clear and then to make a good decision. Manis not a decision making machine, but rather a reluctantdecision maker, who must make use of only the relevantinformation to effectively make decisions in the pre decisionmaking and post decision making stages. When attempting to make any complex decisions, although adecision making tree, decision making tables or a singlemathematical function is of little value. It does not mean

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that the decision making process has no structure, quite thecontrary is true. The decision making process is functional,dynamic and capable of forging its own path towards the rightor most meaningful decision. The decision making process isone of learning, discovering, relevant data processing and oneof defining the current event, which does not match the needsof the decision maker and then finding the most suitablecourse of action to change the event or circumstances into amore favourable outcome. The most effective way of making complex decisions is found byfollowing a decision making process, rather than simplyfocusing on the act or the outcome required. It is for thisreason that I favour the process approach, when making anycomplex decisions. As stated earlier an effective decision making processconsists of three basic stages, pre-decision, decision andpost decision stages. It is important to note that all threestages are interdependent and can never operate independentlyof each other. The post decision phase of one decisioncoincides with the pre-decision stage of the next decision andeach decision stage is in itself dependant on a number ofpartial decisions, each of which are characterised by theirown pre and post decision stages.

Pre-Decision StageWhenever you need to make a decision in any businessenvironment, there is obviously an event which has occurred ora set of circumstances that is not aligned with your needs orexpectations. This conflict provides both the need to make thedecision and the decision motivating tension to drive you tomake the decision. As the circumstances are not aligned withexpectations, the decision maker is motivated to search fordifferent or better alternatives. The obvious goal of anyone,who makes any decision, is to ensure that they make thedecision, which will result in the ideal outcome in the end. During the first stages of the pre-decision process the firstpicture the decision maker may have had of the ideal outcome,may be displaced and the possible conflict amplified evenfurther. This is normal and it is only once the picture of theideal alternative has stabilised in the mind of the decision

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maker that they are able to start the process of decidingbetween what is available and what is actually achievable. During this phase the search for alternatives continues and ispurposely directed towards discovering the most suitablealternative. This is a process of evaluating and assessing allthe possible alternatives, until one is identified that offersthe most empirical evidence that it will deliver the desiredoutcome or that it is the best or closest alternative, whichwill deliver a more desirable outcome. This is a process where the evaluation process continues in asystematic fashion, where the decision maker, sorts throughall the possible alternatives, rather than attempting todiscover any new ones. The process of reinterpretation and reassessment of all thepossible alternatives continues, until the decision maker hasreached a point where one alternative becomes the mostattractive. The better and more focused the available data isand the more information, which is transmitted by eachattribute within the available alternatives, the more soundand meaningful the final decision will be. Once the decisionmaker has reached this juncture, additional decision makerscould be brought in to help assess alternatives and help themto reach a consensus of opinion.During this stage of the decision making process the gatheringand evaluation information and data is highly objective andimpartial. It is only once the decision maker realises thatany further information or data, will not influence thepreference or decision that the decision maker becomessubjective and biased. It is at this stage that only pieces ofthe information are admitted and evaluated. Our braineffectively filters the information and we only see a part ofthe picture. As the pre-decision process becomes stabilised,it is possible to make a partial decision.

Partial decisionsAs we progress through any stage of the decision makingprocess we continually make directional adjustments, where wediscard alternatives, which in that moment appear inferior, aswe return to previously rejected alternatives. This is acyclical process and is repeated as all the alternatives are

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compared and re-compared to the ideal. This cycle continuesuntil the attractiveness of discarded alternatives isdiminished and the attractiveness of the retained alternativesis sufficiently amplified.

Final Decision StageAs stated previously the pre-decision conflict or the need toachieve a better outcome, originated from the decision makersperceived infeasibility of the current circumstances. Theevent or current circumstance is undesirable. This then led toa desire for a different or better outcome, and is whatmotivated the decision maker to initiate the decision makingprocess in the first place. Once the decision maker has made the first partial decisionthe conflict reduces and they move closer to a workablesolution. This is achieved because the ideal has moved closerto the available alternatives. It is from this point onwardsthat the decision making process becomes more complicated. Asthe number of available alternatives reduce, the decisionmaking process becomes more and more difficult, because as thegap between the various alternatives narrows, it becomesharder and harder to choose, as the attractiveness of all thealternatives seems to converge. When the decision maker actually makes the final decision,they have displaced the ideal alternative and selected thechosen alternative. They have then fully resolved the conflictor unsuitable circumstances, which existed in the pre-decisionstage and the decision maker has narrowed the alternativesdown to the minimum number of options. The level of commitmentto the best alternative reaches a pinnacle, when the finaldecision is made.

Post-Decision StageReducing the dissonance or limiting the cognitive conflict, bymaking a decision is not the end of the process. The entiredecision making process is a gradual process of re-evaluation,re-assessment and finally making a choice or decision, wherethe decision maker finally chooses the best alternative. It isusual for the decision maker to experience post decision

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regret, in which the decision maker doubts the validity oftheir choice. During this stage they downplay theattractiveness of the chosen alternative and amplify all theinferior characteristics of the chosen alternative. Postdecision regret is strongest at the end of the decision makingprocess. Understanding the post decision stage in the decision makingprocess, is crucial if the decision maker is to implement anynew decision they have made. The implementation phase is ineffect only a continuation of the decision making process. Anygood decision made and implemented by the decision maker isnot independent of the decision making process. It is in effect the final step in the post decision process.This is the time when the decision maker has achieved maximumdissonance or the conflicting cognitions are aligned and thedecision maker is completely committed to the chosenalternative. All the data and information gleaned andinterpreted has pointed to this alternative and itsimplementation is just completing the decision making process.As can be seen from the description above the decision makingprocess is a fluid, continuous and imprecise process. Thediagram I have prepared below is by no means a uniquerepresentation of the decision making process. There are anumber of different versions possible. My objective is toprovide you with a basic conceptual model, which will allowyou as the decision maker, who is experiencing an undesirableevent or outcome, which requires the evaluation of a number ofcomplex issues, to understand effectively evaluate all thealternatives and reach a good decision. The diagram below summarises the process I have describedabove and attempts to offer a description of the fluid natureof the process, yet is limited by the imprecise limit of thespace limitations of this page.

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Turn Problem Solving into Decision Making and Workable Solutions The ever increasing rate of change in our world, over the pastfew decades, has resulted in the challenges we face, becomingmore and more complex. There is a constant barrage of data andinformation, through which we need to sort, before we can evenbegin making any decisions. These constant, acceleratingchanges, the vast amount of information and the complexitieswe face every day, has also resulted in much largerinterdependencies amongst those impacted by any decision wemake. All of these factors have added up and have madedecision making far more difficult and complex for businessleaders.

The vast amount of data available and the tools, which can beused to help business leaders shift through and analyse thedata overwhelm, has seen leaders respond to these newcomplexities, by placing a far greater focus on analytics anddata driven decision making. Leaders are becoming far moredependent on vast amounts of data to make decisions and arelosing the confidence to listen to their internal voice ofexperience. They have turned down the volume on theirleadership intuition and instead have learnt to trust the datato guide them, when making decisions.

I have observed a definite trend, in all the leaders, at thebusinesses where I consult. They have all moved toward anincreased need for data and tools to analyse this data. Yet,despite, this increased attention, massively increased volumeof data and tools to analyse and interpret the data, thedecisions made by all these leaders does not always improve. Iaccept that the rapid rate of change, the complexities we faceand the interdependencies amongst those impacted by everydecision, makes data and analytical tools crucial to any

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leader. The challenge is that the leaders I have observed relycompletely on the data, to guide them to make decisions.

The data and tools for analysing the data are only supportmechanisms for any leader and are by no means enough on theirown. The data and analytics only support the leader to makeany decision and are by no means enough on their own. If anyleader is to excel in their role as a leader and to ensurethat the decisions they make are valid and in the bestinterest of all stakeholders. They must ensure that they trusttheir insight, experience and ability to effectively interpretall the data they receive. The reason many leaders fail tomake credible decisions, is because they rely almostexclusively on the data they have analysed and they do notlisten to their inner voice of experience, insight andforesight.

The second challenge I have observed in the leaders I haveconsulted with over the past few years, is that they arerelying on analytical tools and techniques, which areoutdated. If leaders are to begin making credible andeffective decisions going forward, I believe that it is timeto rethink how we use all the data, which is all around us andthat leaders need learn to trust themselves, where they usetheir innate leadership intuition and experience to analyseand more effectively utilise the data.

This is best achieved when leaders commit to flex theirdecision making muscle, as often as possible and they work toconsistently improve their skill and ability to lead and makedecisions.

Effectively analysing and Utilising Data to Make DecisionsIt is most certainly time to rethink how we utilise, analyseand interpret the massive amount of data all around us. Theanalytical tools and techniques employed by most of theleaders I have observed, was designed for a much simpler

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world. The rapid rate of change and the ever increasing amountof data, which is available, has seen these tools becomeineffective and outdated. This means that leaders are makingdecisions, with flawed information. As they have begun to relyexclusively on the analysed data and have turned down thevolume on their own leadership intuition experience andforesight. This has seen many leaders often make ineffectualdecisions, which have a negative impact on their businesses.Leaders are also allowing themselves to become overwhelmedwith data overload.

Understanding How Your Brain Manages DataYour brain is designed to work hard to map what it currentlysees or observes, to what it already knows. To do this when itis overwhelmed with a vast amount of data overload, it mustdistort, ignore and sub optimise data. This system ofcomparing everything to what you already know was a veryeffective system forty thousand years ago, when our brainswere evolving to their current structure. Back then thingswere pretty static and everything in our world changed reallyslowly. Therefore the brains ability to link all the newthings it encountered to the old things it had alreadyexperienced, if not always accurate, provided our species witha survival advantage.

The challenge we face today is that we live in a vastlydifferently world, than we inhabited forty thousand years ago.Things are changing so rapidly in our world today, thebusiness cycle is getting shorter and shorter, companies aredeveloping products with an expected life cycle of only sixmonths, completely new products, which did not even exist arecreated every thirty seconds today. This rate of change is notshowing signs of slowing down either. The rate of change isaccelerating at an ever increasing pace.

All of this means that your brain is completely overwhelmedwith new data and input information, resulting in your brain

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kicking into a higher gear, where you distort, ignore and sub-optimise the entire data overload at an ever increasing rate.All the graphs, charts and reports become overwhelming and assuch your brain will filter as much of the information aspossible. This entire process happens subconsciously and sothe more irrelevant data you try to utilise and analyse tomake decisions, the more likely it is that your brain willfilter the information and the less likely you are to see anyproblem areas.

The second area of concern revolves around the area ofmassively increased volume, intensity and the dynamic natureof all the data we need to process, analyse and utilise tomake decisions. The traditional tools, which were designed toanalyse and display data, were designed to work with farsmaller volumes of data than we now encounter. They were alsodesigned to work with static data, which remained stable for areasonable length of time. The rapidly changing environment,we now do business in, has made the expectation that data willremain static redundant. Things are changing at such anincredibly fast pace that we need to analyse and measuredynamic data changes all the time.

The massive amount of data available and the dynamic nature ofthis data make it crucial to very quickly identify the exactinfo you need to make any decision and to eliminate anysurplus info as quickly as possible. The secret to utilisedata effectively is to eliminate as much surplus data aspossible and then to ensure that all the data is easilyunderstood and displayed on one page, for easy reference. Ifthe report you are utilising to assist you to make anydecision is longer than one page, you will either miss thedetail you need to see or you will waste an inordinate amountof time analysing data you do not need.

Another challenge faced by leaders, when they need to make anydecisions, is the pressure and speed required as a result ofthis dynamic business environment, we operate in. Leaders are

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expected to make high quality decisions almost in an instant.Deciding and acting is always the responsibility of theleader. It has however become very challenging for leaders tomake any decisions, because of the dynamic nature of thebusiness environment, with far more inputs and a myriad ofinterdependencies.

This challenge is exacerbated by the way data is presented.Reports are designed to inform, rather than to provideinsights. These reports are designed to report by category orto merely offer metrics. This way of presenting data waseffective, even when there were fewer connections betweendata. Now with the major complexities and interdependenciesrelated to any decision making process, this outdated methodis almost pointless. There is a gap between having informationand utilising this to make any decision. The dynamic nature ofthe business environment and the ever shifting and changingworld, has now resulted in a huge gap forming between theavailable information and its effectiveness as a decisionmaking tool.

For Example: It is important to know the consumer buyinghabits and patterns in any market. The current way ofproviding reports as used by companies at the moment, onlyprovides metrics, there is no provision made to considercrucial factors such as strategy, core competencies and thecompany’s competitive position. As you know strategy, corecompetencies and the competitive position of any business arethe key factors, which drive any decisions. It is for thisreason that the current way of providing reports, where onlymetrics are presented, should be revised to include morerelevant information around core competencies, strategy,market conditions and competitive position. It is no longeradequate to provide discrete facts; it has become crucial toprovide meaningful information, which provides real answers.The information should be prepared to provide data relative tothe decision, which needs to be made or that provides actualanswers to crucial questions, needed to make great decisions.

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For Example: most scorecard reports are designed to listcategories. They list each metric, their current level ofperformance and then this is compared to some sort ofhistorical data. All this information is useful in certaincontexts, but does not reveal the real information you need toknow, when looking at a scorecard. Your goal when exploringany scorecards is most certainly not to be informed abouttargets, performance or history. Your role as a leader is tohave meaningful information, which will give you the necessarybackground to allow you to create a plan and to take action.If reports are prepared with the result in mind, they will befar more effective and provide a meaningful support mechanismto any business leader.

Obviously when you review a traditional report detailingcategories and metrics, you will go through the report line byline. As you try to absorb all the data overwhelm, your brainwill be trying to compare this data with previous information,which you have encountered and it will be filtering,eliminating and removing potentially crucial information,simply because of the information overload. We look at thedata overload and try to answer the same question as weprogress down the report, line by line. “Is the metric ontarget and what is the trend telling me”? This is a reallyineffective and inefficient way of analysing data. Why ask thesame question, repeatedly, when you can organise the data toallow you to discover the info you need to allow you to makeany decision.

When you create a decision or outcome driven report, whichwill support you to efficiently make any decision, it willlook like the report below:

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Yes

No

When you use this method to analyse and present only the datayou need to utilise in the decision making process. Youorganise the metrics according to the question you needanswered or the decision you need to make, rather than thedata being organised on the report in terms of the metric,with no thought about the decision you need to make. Thissimplified way of analysing only the data you need, in a waythat answers the question you need answered or the decisionyou need to make simplifies the process and allows you to geta clear picture.

This will allow you to immediately know where to focus yourattention. This focused approach eliminates the need to wadethrough unnecessary rows and rows of repetitive data, whichonly overwhelms the reader. When you organise the dataaccording to the focused approach as defined above, there isno need to wade through reams of data to get the answer. This

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On Track – Achieving Target

Decreasing TargetedPerformance

Increasing

Monitor and Take action ifdownward trend continues

Product Quality Service Call response

times Customer satisfaction Sales Staff conversion

rates

On Track – No ActionRequired

Market Share Employee Training Employee Satisfaction Market penetration

Take action immediately

Cost of Goods sold too high or rising

Operating expenses rising above possible price increase

Monitor and Take ActionShould Upward Trend slow or

stop

Profit percentage Net Profit Interest Income

organised, decision driven approach provides all the answersyou need. The raw numbers are irrelevant, all the reader isinterested in is what the numbers or trends mean and whataction is required.

This approach allows you to very quickly get the answers youneed and to track only the trends you need to be observing. Ofcourse you can still analyse the raw data and use the numbers,if necessary to further understand or diagnose any challenges.The raw data or metrics are merely an input; they are not theanswer you are looking for. So having all the numbers on anyreport, will actually just slow you down and even force you tobecome overwhelmed and overloaded. Too much data on any reportis difficult to analyse and will result in your brainfiltering or ignoring crucial information.

Action Idea: Think about all the reports you utilise to assistyou when making any important decisions. Are you asking andanswering the same questions on every line or even if you havebecome more organised and have adopted a colour coding schemeto highlight and track certain issues. Does the reportactually answer the questions you have around the decision youneed to make. To make the reports you use in future reallyeffective, where they will serve as a powerful decision makingtool. Organise the report to answer the real questions youhave and simplify the process, by using the process Idescribed above.

When you are rethinking how you can utilise the data you needin future, to assist you to make meaningful decisions, youneed to make. Will require a major shift to the way you haveoperated in the past. Your historical practices of analysing,reading and attempting to analyse and reanalyse rows and rowsof metrics, will most certainly not serve you going forward.

The table below will help you to see the crucial shifts youneed to make, to finally equip yourself to utilse all the datayou have to make meaningful decisions. When you make thesecrucial shifts, to the way you use and present the data you

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need to make decisions, you will have a method for turningraw, overwhelming data into a set of useful decision makingpower tools.

Traditional Method New MethodData is categorised, organised, summarised, restated and the facts are then stated in a chronologicalorder

A synthesizing process, in which all the facts and relationships between all the facts, are pulled together, tocreate new insights, which concisely and as simply as possible answer the questions “How is the business doing” and secondly “What action needs to be taken to introducethe changes necessary to achieve the outcomes required”

All the data is arranged and organised around merely providing loads of overwhelming information

All the data is organised around assisting you to make decisions and to help you to develop plans that will help you to take the action necessary to achieve the outcomes you need to achieve

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Possible answers and recommendations are vaguely provided at the end of a linear report

Meaningful answers are provided at the beginning of the report, because of the simply process followed

The report provider uses bias to drive answers

The report is designed using abias to drive questions, whichwill allow you to understand and highlight the value on offer. The report is built in a focused fashion to help the decision making process.

The entire decision support process consists of a number of static reports, which attempt to provide loads of data to answer all possible questions

The decision making process isfacilitated by using a large number of dynamic reports. Each of which is designed to answer a specific question.

I am sure that these changes seem obvious and really simpleand I am sure that there are a number of effective leaders,who have already started to move in this direction. Thechallenge when introducing these crucial changes is themassive inertia, which exists in most organisations, whichwill pull all leaders back into the old way of doing things.Unless your business operates in a relatively static andsimple environment, the old ineffective techniques of thepast, will not serve you or your business going forward. Ifyou want your business to thrive in the new dynamic businessenvironment, we operate in today, it is crucial that you adoptthis new decision making strategy.

The secret to making effective decisions is to limit the dataoverwhelm and to ensure that all the data you utilise to guideyou when making any decisions, is correctly analysed andprocessed before you even see it. It is also crucial that youturn the volume up on your own leadership intuition and thatyou once again learn to trust your experience and follow yourgut. Flex your decision making muscle as often as possible.Become decisive and trust yourself. Too much analysis and data

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overwhelm, will often result in paralysis and ultimately poordecisions.

ConclusionApproach any events, which are not aligned with the outcomeyou need or expect from a positive perspective and thedecision making process will be initiated from a positiveempowered position. Decisions are effectively just an attempton the part of the decision maker to alter the outcome theyare currently enjoying, so that they can change a set ofcircumstances, by first assessing all the availablealternatives, weighing these against the expected outcome andthen choosing the best alternative.

Any decision made, upon which action is taken, will result ina different outcome, for the decision maker. Every newdecision must thus be constantly measured to see if it isdelivering the expected outcome. If it is not then thedecision making process needs to be repeated, until theexpected or desired outcome is achieved.

References1. Brehm. J.W (1966)A theory of Psychological Reactance.

Academic New York2. Beer, S Wiley (1975) Platform for change, Academic New

York 3. Janis. I. L and Mann (1977). Decision Making: A

psychological Analysis of Conflict, Choice andCommitment. Free Press, New York

4. YU, P.L M.K Starr (1977), Studies in the managementSciences, vol 6. North Holland Publishing, Amsterdam.

5. http://www.virtualsalt.com/crebook6.htm6. Kepner, Charles H.; Tregoe, Benjamin B. (1965). The Rational

Manager: A Systematic Approach to Problem Solving and Decision-Making.McGraw-Hill

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