How to make great (BIG) decisions, quickly

With sustained disruption underpinned by ongoing demands, burnout is increasingly common. A by-product of burnout seems to be ‘decision fatigue’ — the deteriorating quality of decisions that occurs after prolonged decision-making. This seems to go hand in hand with ‘mental fatigue’ — the psychobiological state resulting from extensively demanding cognitive tasks, including multitasking or switching between various tasks.

Which isn’t surprising. For many people, personally and professionally, it’s a difficult and draining time where we’re chronically physically and mentally tired … Hence why it’s so important to understand what shapes a great decision and how to problem-solve to most efficiently and effectively manage the current state of flux.

Before we delve into the topic, it’s important to clarify that this article isn’t about expediting micro decisions. Instead, it’s about calling out macro challenges and tackling the areas that fundamentally impact your business. Taking this extra challenge on in a state of burnout, decision, and/or mental fatigue might sound counterintuitive. Though to the contrary, it’s the opposite: the ‘cleaner’ and more profitable our operations are, the more our businesses can be poised to withstand hardship and be primed for growth. Subsequently, reconciling the big decisions relieves the mental load. It enables you to focus on running your business without the ongoing ‘hamster wheel’ of hashing and rehashing unreconciled problems in your business.

With the backdrop of high inflation and cost of living, we encourage all business owners, including brokers, to take a step back and critically assess their business to determine where the ‘fat’ can be trimmed, identify processes that have blocks, and the operations that can be leaner and more streamlined. 

This brings us to the question: what makes a great (big) decision? Do excellent decision-makers have widespread approvals or does broad consensus equate to considerable compromise? Or do you trust your own instinct and go solo? And then there’s the element of time: are you afforded the luxury of time required for ‘consensus-seeking’ decisions or are you required to make quick, critical decisions on time-sensitive issues? And not to mention whether you’re the victim of the curly beast of procrastination.

According to author Martin G. Moore, there are specific elements that can help the speed and accuracy of decision-making and, in turn, boost performance and enhance outcomes. The basis of this framework was the realisation that time-sensitive decisions were often better than those Mr Moore spent days agonising over. With the realisation that he could consistently make good decisions under ‘severe’ time pressure, he analysed the ‘DNA’ of what made a decision ‘good’.

According to Mr Moore, the only surefire way to evaluate the efficacy of a decision is to assess the outcomes. Whether a decision was ‘good, bad or indifferent’ becomes apparent through the test of time. That said, he warns that hindsight is often prone to attribution bias (assumptions or judgements when evaluating your own and others’ behaviours that do not always accurately reflect reality). So, be as brutally impartial as possible in post-decision assessments.

Here’s a corresponding overview of what to consider to help optimise the speed and accuracy of your decisions while helping override hesitation, procrastination, and widespread consensus-seeking approval.

1. Identify/address the root cause. Seek feedback from the people closest to the issue to identify the core of the problem, being mindful that it’s easy to focus on the symptom, not the root cause. That said, symptoms often need to be rectified quickly. Though be sure to develop a plan to fix the root cause to avoid ‘wash, rinse and repeat’ of the same issue once the symptoms have been addressed.
2. Balance short-term and long-term risk versus reward. Finding the right balance between short and long-term risk versus reward is key to achieving sustainable value. The extent that you labour on a decision should be determined by the associated risk (which will dictate whether you take a more or less cautious approach). Consistently evaluate the short-term versus long-term costs and benefits and be aware that short-term outcomes can be seductive and misleading (and may mask the long-term implications).
3. Get in the trenches. Seek feedback from the team members closest to the action — meaning the people who are ‘on the ground’ with the most extensive knowledge, experience, and perspective about the issue.
4. Obtain different viewpoints. Gathering different viewpoints is essential to broaden your perspective, which may include internal and/or external perceptions (i.e. including an aggregator, accountant, etc). This should include consulting with people with relevant experience who can contribute meaningfully. Importantly, this does not mean ‘consensus-seeking’ decision whereby you seek out everyone’s opinion. Nor should it be confused with gaining the perspective of people who will feel obliged to validate your viewpoint. Keep in mind that valuable input often sparks robust debate and gaining a greater understanding of the problem is the pathway to deriving smart solutions.
5. Be accountable. You’re ultimately the one who must be ready to claim responsibility for the choice. This is often confronting for weak leaders, who feel exposed and overwhelmed by the fear of making a mistake or being disliked. Arguably, if accountability is shared, it dilutes the decision and its effectiveness. Conversely, taking accountability builds confidence and creates trust. It’s also worth noting that not all decisions are going to be ‘right.’ However, it’s important to learn how to fail to become better at making the ‘right’ choice.
6. Prioritise alignment. While not everyone will be participating in the decision-making process, everyone should align with the outcome. Be sure to communicate the substance and reasoning behind the decision to bring all stakeholders together and smoothly implement the corresponding outcomes.
7. Start brain training your decisioning. It’s beneficial to start the practice of balancing the risks and potential impacts of each decision you make: what if X happens? How likely is that to have a negative outcome? How likely is that to have a positive outcome? What would the consequences be?
8. Be focussed. Address all core elements of a good decision with a heightened sense of urgency and retain focus on its resolution (keeping in mind that a great decision is timely). 

Like anything in life, every behaviour is learned (and can be unlearned). And how to successfully make great decisions and problem-solve is an invaluable, lifelong skill — particularly in a challenging and disruptive environment.

References

• https://en.wikipedia.org/wiki/Decision_fatigue
• Fatigue - Wikipedia
• https://en.wikipedia.org/wiki/Attribution_bias
• How to Make Great Decisions, Quickly (hbr.org) 

Nick Young is a results-driven specialist with more than 25 years’ experience in the mortgage broking industry and now heads Trail Homes: Australia’s most established and longest-serving trail book purchaser.