Tag: Decision

Team Decision Making- Step-By-Step Organizing Guide

Decision-making in a team is either a disturbing or helpful thing because everyone shares their views that makes the decision-making process complex.

A good team can organize the views of the team members and decide on a solution to that problem. However, it is not easy for the leader to decide on a solution with his team members in panic mode.

A skilled and hard-working team never gets panicked and always works according to the rules, they made in order to maintain peace between team members

In a team, making a decision is difficult but not impossible. So the team can follow the respective rules and get how team decision making is organized.

WHAT’S IN IT

Breaking the problem with details

In decision making with a team, it becomes hectic because the conflicts between the two are likely to be held. So, it is the duty of the leader to describe the problem and share all parts, terms, and issues.

While making a decision, the team leader is responsible for the best or worst because he leads a team. So, every aspect regarding the problem should be cleared by the leader.

So, when working this way, conflicts never happen. By describing the problems, every member understands it easily and shares the views and ideas on it. With this step, the decision-making process’s first step is done for deciding the good solution.

If the problem is defined, the team can easily understand the issue and work according to the required situation.

Examine the accessible data

Examination of every issue is essential, as your decision is decided after accessing all the data that shows the issue’s pros and cons.

It is necessary to examine the data. It means that after you know all the aspects of the problem, you have to gather the information related to it individually but working as a team. This makes deciding a solution easier.

Examination in every regard is an important attempt because the reason for the wrong decision can be less access to data and without confirmation about its correctness.

The leader of a team can create a pile of problems, and give those to its members respectively. In this case, a single individual gathers all the information on that problem which fastens the decision-making process.

For solving any issue, information is required. For example, if there is a problem in the record of accounts in a company, but where exactly in records? they don’t know. So, they recheck their accounts from the start to understand the issue and examine it

Navigation of team members’ ideas

It is the duty of the team leader to listen to each member’s ideas because they are working as a team, and it is necessary to hear everyone so the best decision can take place.

As we all know that team support is necessary so working in a team with charm and a goal to achieve success, you will be successful. So while discussing the given problem or target. Everyone has the right to share his ideas that give help to decide the best solution.

Giving a chance to every team member can lead to peace in the team and also they would work with motivation. When everyone has a chance to share his/her thoughts, the leader can decide, keeping in mind the interests of its members.

In any issue, team members’ ideas are as much necessary as you think. To run a business alone in a monopoly is not possible. So ideas can make us view the problem in a new way for decision.

For instance, there is a shoemaking company having an issue of creating designs that should be unique, impressive, and attractive. So for this, A meeting is held with employees and give them a task to make the design. So they can view all designs and can decide easily.

Decide on a solution

On the way to make the best decision, there are many hurdles or obstacles a team can face so instead of ignoring these hurdles, work with them and you will see the milestones turn into a good decision.

While deciding the solution, it is necessary to view every aspect so that your decision is definable.

After listening and navigating all members’ ideas, the leader decides a solution to the given problem. In deciding a solution, a leader must take a review of shared ideas and then select the alternate to cop with.

A solution should be wise and exact so that the problem can be solved. If not, the problem is not solved and makes a new disturbance. After taking all the shared ideas, a leader has to make a decision that has almost every content, aspect, and shared thoughts that help in deciding the best solution.

As in the above-mentioned example, a shoemaking company needs a unique design. So they give employees a new design and view it. And by this, they can decide which design is used for making new shoes.

Stepping forward in action

Without action, work is undone. So the decision is not the work, your work gives you goodwill and public confidence. So after deciding, the work should be started and done as fast as you can.

The solution to the problem is not just the work but also work on the decided solution. After deciding the problem, the leader orders them to act in a way they decide to work. If you don’t, then the decision on the solution is wasted.

So after the decision, work like a pro and step ahead to achieve goals and work done for a better future and profits. For example, there is a clothing brand that decided to sell their bags but they don’t make bags so the decision is not only required but also action is required.

Leading the above example of a shoemaking company, the decision of design is not enough but also they have to make a new shoe product of that decided design. If not, then the decision is not valuable, as your work speaks not decisions.

Pros and cons

Working in a team is beneficial, in the case when you are discussing the problem. So the ideas given by team members are helpful for you to decide to some extent. On the other side, teamwork is not good in some cases as conflicts and arguments between the two can make the situation worse.

In teamwork, you can distribute a single task to each member for configuration. While working alone can make you stuck in every single situation. While finding the solution in a team, we have numerous ways to see the problems right and wrong side whereas working alone can’t make us work like in a team because all the pressure is fully on you.

Conclusion

In this article, we discuss the following steps of organizing team decision making. Also, discuss healthy discussion making taking techniques that help you to increase the growth of your organization and increase your technical growth.

Also, discuss the following healthy ways and advantages of organizing team decisions.

To sum up, we conclude that decision making in the team is helpful when there is a peaceful environment between the members. Also, no conflicts can take place in them.

So for the betterment in teamwork to decide the solution, focus on every view given by the members, and then make a decision.

Also you can read our blog on Business Experiments – Taking Intelligent Risk

FAQS

How decision making in the team works properly without abruption?
Group thinking is a phenomenon that converts the decision in teamwork properly and converts the opinion into a valid solution with critical thinking. Sometimes steps are repeating. Then goes the solution in healthy ways.
As working in the group is difficult most of the time. The reason is the conflicts between the members. Though we all know that every person has its view.
So for avoiding conflicts and working without abruption, a team needs to work in peace. The leader should keep an eye on every view given by the members.
So conflicts can never take place and the solution is decided without abruption.

How can a leader make teamwork better?
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December 26, 2020
What is Decision Matrix Analysis?
Should I subscribe to Netflix or Amazon Prime? Or should I eat chicken or veggies? Should I watch Football on ESPN or WWE on Ten Sports? Life is all about making decisions. We take most of our decisions immediately but in some cases, we take time and choose which option we have to go based on our gut feelings, which is ok. But you cannot make business decisions based on your gut feelings. As one wrong decision can finish your business in just one moment. So, That’s why good managers use some mathematical and statistical approaches to make decisions. They use several rules like Pareto Analysis, Decision Matrix, etc.

WHAT’S IN IT

What is Decision Matrix?

Suppose you want to buy a car and you have 3 options. So, Now, you have to choose only one of them based on some criteria like cost, fuel economy, service, reliability. It can be tempting to opt for the lowest cost car. But, what if that car is not reliable at all? Would you still choose that one? So all the factors must be considered to make the best decision. This is complex.

How can I solve this puzzle? The answer is the Decision Matrix. It’s a useful tool, where there are several options to be considered, but no obvious choice. It was invented by Stuart Plugh, is also known as Grid Analysis, Pugh Matrix Analysis, and Utility Theory.

When to use?

Decisions matrices can be used to make complicated choices in no time. Let me mention some uses of it.
1. Whenever we have to choose the best option among multiple options.
2. Whenever we have to decide based on multiple criteria.
There are two kinds of matrices, Simple Decision Matrix and Weighted Decision Matrix.

Simple Decision Matrix

This is a sample chart of it. On the left column, we put the criteria based on which we are going to judge the options. On the top row from left to right, we put the options.

As you see, there are 5 criteria. Let’s imagine a scale for rating the cars based on each criterion. Car A costs the least, So give its cost a rating of 5. But it has a below-average Practicality and Fuel Economy, So rate the Practicality and Fuel Economy with 2 for Car A. The performance of Car A is better than average, but not as good as that of Car C, so let’s rate the performance with 4. This car is the least reliable, So the reliability of Car A gets 1.

Similarly, rate the Car B and Car C based on these criteria. Now, simply calculate the total of all the ratings for each car. Car A gets 14, Car B gets 14, Car C gets 18.

Though Car A is the cheapest in terms of cost, after this analysis we know that we have to go with Car C.

But all the criteria may not have the same importance. So here comes the Weighted Decision Matrix.

Weighted Decision Matrix

This is a Weighted Matrix chart. Just like in Simple one, you have to put Criteria on the left column. Then keep the second column blank, and then from the third column to the top row put the options. Under every option create two columns, Score and Total.

Give every criterion a number rating according to its priority to you. Suppose Criteria 1 has the least priority for you and Criteria 5 gets the greatest priority, then give Criteria 1 a score of 1 and Criteria 5 a score of 5. Put these scores on the blank column after the criteria column. Name this column as Weighting.

Just as we have learned before give every option ratings based on different criteria on the score columns under every option. Multiply the scores with the corresponding weightings and put those values under the “total” column under every option.

Now, simply add all the values in the “total” column under every option. After following these steps you can choose the winner.

Benefits of Decision Matrix

There are several benefits of this Matrix and according to many management executives, this is the best tool for taking a complicated decision.

There are also other tools of Decision making, like the Decision Tree or the Pareto Analysis. But Decision Matrix Is the easiest one, Anyone can use it and can choose the best option.

Another advantage of this Matrix is purely based on Mathematics. So there is no scope for gut feelings here, which reduces the chance of human error.

Conclusion

Decision Matrix helps us to make a rational choice from several familiar options. Several software like Rationalize.io and Ruminate.io are based on the Decision Matrix Analysis.

Also you can read our blog on How Good Is Your Decision Making

FAQ’s

Who invented Decision Matrix?
Stuart Plugh

What is Decision Matrix?
Suppose you want to buy a car. You have 3 options. Now you have to choose only one of them based on some criteria like cost, fuel economy, service, reliability. It can be tempting to opt for the lowest cost car. But, what if that car is not reliable at all? Would you still choose that one? So all the factors must be considered to make the best decision. This is complex.
How can I solve this puzzle? The answer is the Decision Matrix. It’s a very useful tool to use where there are a number of options to be considered, but no obvious choice. This Matrix, invented by Stuart Plugh is also known as Grid Analysis, Pugh Matrix Analysis, and Utility Theory.

When can we use Decision Matrix?
Decisions matrices can be used to make a complicated choice in no time. Let me mention some uses of it.
1. When we have to choose the best option among multiple options.
2. When we have to decide based on multiple criteria.
What are the benefits of the Decision Matrix?
There are several benefits of this Matrix and according to many management executives, this is the best tool for taking a complex decision.
There are also other tools of Decision making, like the Decision Tree or the Pareto Analysis. But this Matrix Is the easiest one. Anyone can use it and can choose the best option.
Another advantage of this Matrix is purely based on Mathematics. So there is no scope for gut feelings here, which reduces the chance of human error.
December 5, 2020
How To Make a Decision?

Every problem has a solution you just need to make a good decision for that problem. Decision making is a tough situation for someone, some people are not good at decision making and they don’t have any idea about how to make decisions. So here I give you some tips about how to make good decisions. Check this out.

WHAT’S IN IT

How To Make Decisions Using Decision Cycle?

Decision cycle is steps of actions on a repeated basis, which helps you to make the best decision. There are lots of decision cycles available in the world for different kinds of fields. Every field uses different kinds of decision cycles. Means, a research basis decision cycle is not useful for making your personal life decisions or managerial decision cycle is not helpful to you to make decisions for doing any research.

So, for using the decision cycle first you need to understand which field is your or to understand which decision cycle is fit for your scenarios.

Some decision cycles examples

1. PDCA

PDCA stands for Plan-Do-Check-Act. You can use this technique for choosing big decisions in your life. You can also use this cycle for business decisions but you have to understand your problem first.

2. OODA

OODA stands for Observe-Orient-Decide-Act. This technique is mostly used by militants in war situations. This technique is developed by Air force retired Colonel John Boyd. He also uses this technique in aerial combat.

3. Herbert Simon model

The Herbert Simon model is also a decision-making model. This model is used by management; you can also use this technique for daily life problems.

4. Scientific method

This method is used by scientists for doing research.

To understand this decision cycle in detailed click here.

How To Make Decisions Between Two Options?

People are always confused between two options. It is very difficult to choose one option between the two. But if you think deeply about both options then you can realise it’s not hard. Mostly in this situation, you are confused when both the choices are equally right for you. So in this situation, it is harder to make a choice.

So, how to choose between two options? In this situation, you have to accept the option which is favourable for you and reject the option which is unfavourable for you. Now you say everybody knows that favourable and which is unfavourable for you. So your choice should be based on what is your Goal Statement?

Just ask this question for you when you’re confused between two options, you will get your favourable option. Choosing between two options, identify which option is helping you to make a path for your Goal Statement.

Decision Tree

What is a Decision Tree?

A decision tree is a diagram, which looks like a tree used to determine a course of actions, every branch of the tree represents the possible situations. This also helps you make choices. A decision tree is very simple to understand and visualise. It shows what is going on. For making a decision tree you have to make a little effort for data preparation. It can handle both numerical and categorical data.

How to create a decision tree

Using an example now we understand how to make a decision tree.

Example of a decision tree

A new company is formed, which gives loans to the public, now they want to do marketing, but they don’t have any idea about their target audience. To find out the target audience of that company using a decision tree.

From the above diagram, we categorized our audience in ages below 20, 20-50 and 50+. So from the first branch, we understand, up to 20 age, only 1% of people are taking a loan. In the 20-50 age range, 40% of people take a loan and above the 50 age, only 5% of people take a loan. From this basis now we are targeting 20-50 age groups.

So, two parts happen again in 20-50 age people, which is married and unmarried. In this branch, we understand 55% of married people take most loans and only 15% of unmarried people take a loan.

There are also two categories happening in married people, that is which have kids and which one has not kidding. The 75% married and which have kids take a loan and only 25% married which don’t have kids take a loan.

So, from the above diagram, we understand our audience, which is 20-50 age people who are married and having kids.

How To Make Decisions For Business?

Business choices are always complicated for a manager to make perfect choices. There are always ups and downs in business and you have to tackle every situation in the proper way using the best choice. But, there are lots of techniques available in the market for business problems, you can also use those techniques. There are not any particular steps available in the world which can give you 100% result in decision making, but at least you have to use those steps in business just to understand the way of problem solutions.

Steps of business decisions

1. Understand your Goal or Vision statement

Every company or business has their own goals or vision. For making every choice, first, you have to understand your goals or vision and then take an important choice of business which can help you to reach our goals or your vision.

2. Gather useful information

After understanding your problem you have to collect all information about that problem which can help you to solve problems. You can also consider your team and collect information from those. This research technique takes a lot of time to collect information because this is the base of your problem solution.

3. Choose relevant options

After collecting all information you have to analyze the whole information and understand which information is helpful to you to make a choice. So you have to collect all options which helps you to solve a problem.

4. Make a decision

From those options, now you have to select the best option which can solve your problem. In this stage again you have to understand your goal or vision and then make a choice.

5. Action

After making a choice, apply them on problems.

How To Make Quick Decisions?

In this 21st century, everyone wants a quick result in their life. There is not any concept available which can help you to make quick choices. You can make quick choices about your daily problem like what to wear today? Which movie should I watch today?

But in other kinds of problems, you can make quick choices but you have to think about it and it takes time. So, how to make a quick choice.

For taking a quick choice you have to understand the best situation and worst situation of all options that you have. If you have two options then understand the best and worst situation of both options. If you are ready for both situations of one option then choose that option. And, if you are not ready for both scenarios or you are ready for good and not ready for bad situations then don’t accept it.

Let’s take an example

Should I join a corporate job or start a new business? This is a question, so let’s understand this problem.

So, if you choose yes, what is the best scenario of that option; you can live your whole life easier and what is the worst-case scenario of this; every day you have to work hard and enjoy your whole life on weekends. So, if you are ready for both situations then accept this option.

If you choose business then what is the best scenario of this option; if you start a business then you can become millionaire or billionaire. What is the worse scenario of this; your business model can fail. If you are ready for both scenarios then choose this.

Conclusion

Decision making is a very useful technique in our daily life and corporate life. There are lots of steps available to make a good choice. You have to understand which decision cycle is fit for your problem. Not every choice you make needs to be always right. Sometimes it is not helpful to you. Now in this situation, you have to learn from your mistakes and share your experience with others so they can not make that mistake.

Also You can Read our Blog on How the Decision Cycle helps to make decisions

FAQ’s

What is the decision cycle?
A decision cycle is steps of action on a repeated basis, which help you to make the right choice.

What is a decision tree?
A decision tree is a diagram, which looks like a tree used to determine a course of actions.

How to make business decisions?
follow these steps to make business choices, 1. Understand your vision 2. Collect all information. 3. Choose relevant option 4. Make a choice 5. Take action

what are the examples of decision cycles?
PDCA, OODA, Scientific method, Herbert Simon decision model these are the examples of decision cycles.

November 30, 2020
How the Decision Cycle helps to make decisions

Decision cycle is steps, which is based on a repeated basis which helps you to reach the best solutions. It is a process of actions which can help you to find out the best solution for your business or your daily life problems. In the decision cycle, there are a lot of steps available, you need to follow each step for the best result.

WHAT’S IN IT

What is the Decision Cycle?

Decision Cycle is a step of action used on a repeated basis, which helps you to make decisions and solve problems. For taking decisions you have to follow some actions properly and then you have to make decisions. This whole process is called a decision cycle.

Every field has different kinds of decision cycles. All fields do not use a one specific decision cycle, so you need to understand which is your field and which decision cycle is fit for you for taking particular decisions.

Examples of Decision Cycle

(A) PDCA Cycle

PDCA this concept was first developed by The American statistician and physicist Walter Shewhart. Later William Deming developed this model by inspiring Walter Shewhart’s model.

PDCA stands for (Plan-Do-Check-Act). This is a four-step management process used for solving business problems or other management problems. This decision cycle is also known as the Deming Cycle, Shewhart cycle and PDSA (Plan-Do-Study-Act).

PDCA or PDSA is a step to help you to improve your product and services. It is a systematic decision cycle used by management and doing a test on different kinds of projects.

When to use PDCA Cycle

1. When starting a new improvement project

If you want to start a new project and don’t have any idea where to start? Then, following this cycle will help you to find the best route for your project.

2. Developing a new design for your product or service

If you want to develop your design of product or services then you can use this decision cycle.

3. For continual improvement

If you are doing continuous improvement for your business then use this decision cycle for best solutions.

4. Implement new changes

If you want to implement new changes then you can use this decision cycle for better results.

Steps of PDCA Cycle

1. Plan

This is the first step of the PDCA Cycle. In this step, first, you need to form a proper team which can help you to make a plan. After forming a team now you need to identify the problem with the help of your other teammates and you have to understand the problem.

After understanding the problem, now you need to identify the potential root cause of that problem. You also need to develop hypotheses about issues.

2. Do

In this second step, you have to describe the solution and also have to try that solution on a small basis on a pilot project and you have to also measure what result comes from that. While doing a test on a pilot project you also have to understand what is useful and what is unuseful for your main project.

3. Check

In this step, you have to study the result, which comes from your pilot project. You also have to measure the effectiveness of your result. You can also communicate with other teammates and get feedback from them for better results.

4. Act

In this stage, you have to take action with your solution. If your solution was successful then you can implement it, but if your solution is not effective then you can again use the PDCA decision cycle.

(B) OODA Loop Decision Model

OODA loop is a decision-making process of human reaction time. Full form of OODA is Observe, Orient, Decide, and Act. The OODA loop method is created by Air force retired Colonel John Boyd. he uses this method when he is on his mission of aerial combat and it helps him to make decisions. This technique is mostly used by militants.

Steps of the OODA Loop decision model

1. Observe

Now in the first step, you have to observe, what is happening? Observe the whole area and to understand what’s going on. Observation is a key point in this process. From observing, you can easily identify the problem and understand the whole environment.

Basically, in observation, you need to see trouble before it. Colonel John Boyd also saw trouble before it formed.

2. Orient

After observing there are lots of options open in front of you. In this step, we have to decide if we are going to do something and why we are going to do it. In this step, you have collected a lot of options.

3. Decide

In this stage, you have to decide the best option, which can solve your problem or you have to identify the best reaction which can help you.

4. Act

After choosing your best option now you have to act on that. If it does not work properly then again start from observing and use this decision cycle again.

Example of the OODA Loop Decision Model

Imagine if you are at home and watching a horror movie and suddenly a noise comes from somewhere. Now in this situation, you first look around and observe your room. Now lots of thoughts come to your mind like, a dog is surrounded outside or it’s just wind or it’s just an illusion. After considering all thoughts you decided to see what sound actually is, so you go to the window and check there, then you find out it is the wind which makes noise.

(C) Herbert Simon Decision Making Model

According to the Herbert Simon Decision model, there are 3 ways to solve a problem which is Intelligence, Design, and Choice. For making a good decision these 3 steps can help you to solve problems. This is also the best decision cycle for you to taking your decisions.

Steps of Herbert Simon Decision Model

1. Intelligence

The first step of the Herbert Simon Model is intelligence. In this stage, you need to understand the problem. Means which problem do want to make a decision. In this stage, you also have to collect information regarding problems.

2. Design

In this stage, you have to identify how many possible solutions you have to solve this problem and select them. In short, if a problem is raised and you find out 5 best options for solving this problem from the whole information then only select those options.

3. Choice

The choice is the third and last stage of this model. In this last stage, you have to select the best choice for your problem and implement it. Means out of the 5 you have to select the best option which can solve your problem.

Example of Herbert Simon Decision Model

If you are the manager of a manufacturing department and there is water leakage, it will happen in the pipe. Now using this model first you understand your problem and that is leakage. after collecting information we understand that there are 4 solutions available for this, 1. Use gum for leakages and fix it. 2. Change the whole pipe. 3. Put the bucket under the pipe 4. Switch off the water supply.

Now we choose the 1st option which is to use gum and fix the leakage, in the 2nd option it is very costly to change the whole pipe, the 3rd option is a temporary solution and water is the most important part for manufacturing so the 4th option is also not fair for us.

(D) Scientific Method

This method is used by scientists for making decisions. The scientific method is also done in 4 stages which is Observation-Hypothesis-Experiment-Evaluation.

The scientific method gives proper knowledge, which helps you to make decisions. In the scientific method, you have to do lots of experiments and have to identify which is the best solution for your problem and apply them. This is a very long process of decision making, because in this process you have to do lots of experiments, and you also have to present hypotheses.

Steps of the scientific method

1. Observations

In this first stage, you have to observe which problem you want to solve. Means, on which topic you have to want to do research. Then you have to collect all the information about that problem. You can also study the previous report to understand the whole information.

2. Hypotheses

After collecting all information you have to analyse what is happening after using this information or what happened when we use another information or what result comes when we use all information or what happened when we use another research technique. You have to make predictions about the results in different kinds of scenarios.

3. Experiment

Now you have a lot of scenarios, so then use every single scenario and experiment them and to analyse what result happened. This is a very long process that takes a lot of time for research.

4. Evaluation

The last stage of this process is evaluation. After experimenting all scenarios you have to evaluate every scenario and choose the best one from that which can help you to solve the problem, if not a single scenario helps you then again start from observation and use this process again.

Conclusion

Decision making is a process which helps us to find out the best option for our problems. The decision cycle is steps of action to reach the best way. There are lots of decision-making models in the world which can help you to solve problems. You have to understand which model is useful for your field or for you to make decisions. So, understand every model of the business cycle and apply them in your life.

Also you can read our blog on Interrelationship diagram – Amazing Problem Solving Tool

FAQ’s

What is the Decision Cycle?
A decision cycle is basically a step of an option that helps you to make the best decision for your problem.

PDCA Cycle stands for?
PDCA stands for Plan-Do-Check-Act.

OODA stands for?
OODA stands for, Observe-Orient-Decide-Act.

What are the stages of the Herbert Simon Model?
Intelligence-Design-Choice these 3 are steps of Herbert Simon Model.

What are the stages of the scientific method?
Observation-Hypothesis-Experiment-Evaluation these 4 are the steps of the scientific method.

Why use the PDCA cycle?
When you want to start a new improvement project or implement new changes or for continual improvement, that’s why we use the PDCA Cycle.

November 29, 2020