How To Make Smarter Decisions — a list.

Throughout history, humans have struggled with the challenge of making smart decisions. From the earliest moments of civilization, individuals and societies have grappled with the consequences of their choices.

In many cases, those choices have led to great success and achievement. In others, they have resulted in hardship and tragedy.

The ability to make smart decisions is a critical skill that can profoundly impact our lives and the world around us. It is a skill that requires practice, self-awareness, and an understanding of the factors that influence our choices.

This article will explore the art and science of making smart decisions, drawing on the insights and techniques found in the book “On Making Smart Decisions: 10 HBR’s Must Reads”.

Whether you’re a business leader, an entrepreneur, or simply someone looking to improve your decision-making abilities, these 7 tips will provide you with valuable insights and strategies for making better choices and achieving success in all areas of your life:

1. Understand your cognitive biases: People are prone to cognitive biases, such as confirmation bias and availability bias, that can cloud their judgment and lead to poor decision-making. Recognizing these biases is the first step to making better decisions.
2. Use mental models: Mental models are frameworks that help you understand and analyze complex situations. They allow you to break down problems into smaller parts and consider them from different angles.
3. Avoid groupthink: Groupthink occurs when a group of people prioritizes harmony and consensus over critical thinking and independent judgment. To avoid groupthink, leaders should encourage dissenting opinions and diverse perspectives.
4. Make decisions based on data: Data-driven decision-making is critical for business success. Leaders should collect and analyze data to inform their decisions, rather than relying solely on intuition or gut feelings.
5. Use scenario planning: Scenario planning involves imagining different scenarios and planning for them. It allows you to be prepared for unexpected events and make better decisions in uncertain situations.
6. Consider the second-order effects of your decisions: Every decision has consequences, some of which may not be immediately apparent. It’s important to consider the second-order effects of your decisions and how they will impact your business or organization in the long term.
7. Practice decision-making: Decision-making is a skill that can be improved through practice. By reflecting on past decisions, seeking feedback, and experimenting with different decision-making techniques, you can become a more effective decision-maker.

Today, try to take a step back and reflect on your decision-making process. Identify what could be your cognitive biases and mental models. If you want to explore more on cognitive bias, here is a useful article to help you understand the topic better.

In Summary, to make smarter decisions:

1. Encourage dissenting opinions and diverse perspectives within your team or organization to avoid groupthink.
2. Collect and analyze data to inform your decisions. Use scenario planning to prepare for unexpected events.
3. Always consider the long-term effects of your decisions and experiment with different decision-making techniques to improve your skills.