Save to My Latticework unsave

Make Better Decisions
Make Better Decisions
save0 saved view14.4K views
(0)
Share this with your network
Share this with your network
Overview

We make countless decisions every day — so it's surprising that we haven't developed better ways of making them. Well actually, we have... but maybe you're not using them yet. 

Dive into this practical Playbook for better decisions and be sure to follow the links for more information on each. As always, exclusive member content is signified with a padlock icon. 

This Playbook includes the following sections, select a heading to jump to that section.
DECISION-MAKING PREPARATION
Put yourself in the right context and headspace to make an effective decision by understanding and mitigating against your biases.
Fast and Slow Thinking
This foundational Behavioural Economics model is a crucial starting point to appreciate that most of the decisions you make will be fast and irrational. The question then is how will you slow yourself down and support a more considered decision?
Find out more about Fast and Slow Thinking and add it to your Latticework of Mental Models here.
Confirmation Heuristic
One of the implications of fast thinking and our bias laden approach, is the Confirmation Heuristic. It's almost unavoidable, so keep asking 'what would I see if I were wrong?'
Find out more about Confirmation Heuristic and add it to your Latticework of Mental Models here.
Sunk Cost Fallacy
lock
Another bias involves throwing good money after bad with the Sunk Cost Fallacy, so consider how to take a fresh look at a decision.
Find out more about Sunk Cost Fallacy and add it to your Latticework of Mental Models here.
Return to top
DECISION-MAKING BASICS
Explore some fundamental tools and concepts to help improve your decision-making.
Hyperbolic Discounting
lock
Be aware that any decision you make will tend to over value short-term returns over longer-term ones because of Hyperbolic Discounting.
Find out more about Hyperbolic Discounting and add it to your Latticework of Mental Models here.
Parkinson’s Law
You will likely never have all the information you want to make a decision, there will always be another perspective or consideration, so why not timebox your decision-making process?
Find out more about Parkinson’s Law and add it to your Latticework of Mental Models here.
Opportunity Cost
lock
Weigh up your decision and the gains you hope it will deliver against the Opportunity Cost of the road not taken.
Find out more about Opportunity Cost and add it to your Latticework of Mental Models here.
Decision Tree
Want to follow a consistent path for decisions and take the cognitive load out of the equation? Consider adopting Decision Trees.
Find out more about Decision Tree and add it to your Latticework of Mental Models here.
Cost-Benefit Analysis
The classic cost benefit analysis had to get a mention here. Such an analysis might be quite complex, tracking time and intangibles. But, in it's simplest form, this model presents a way to quickly weigh options. 
Find out more about Cost-Benefit Analysis and add it to your Latticework of Mental Models here.
Pugh Matrix
lock
When you're weighing up several options be sure to create criteria and a baseline comparison with the Pugh Matrix.
Find out more about Pugh Matrix and add it to your Latticework of Mental Models here.
Impact Effort Matrix
This Model represents a quick, versatile way to sort through and prioritise options, and can also be used to evaluate a single decision point. Simply map your potential effort against it's potential impact or results. It's a particularly useful model to use visually as part of co-design sessions. 
Find out more about Impact Effort Matrix and add it to your Latticework of Mental Models here.
High-Velocity Decisions
lock
This one was pulled it out of an Amazon shareholder letter from Jeff Bezos. Perhaps a little more 'agile' than the average 'simple decision' Model, but we like to include it because it speaks to a more realistic decision-making context —that of fast-paced organisations.  
Find out more about High-Velocity Decisions and add it to your Latticework of Mental Models here.
Split Testing & A/B Testing
Don't just take a 'set and forget' approach, consider running a Split Test to explore options further and gather more data.
Find out more about Split Testing & A/B Testing and add it to your Latticework of Mental Models here.
Satisficing
Stop looking for perfection and embrace Bounded Rationality and Satisficing for faster, practical, and happier decision-making.
Find out more about Satisficing and add it to your Latticework of Mental Models here.
Regret Minimisation Framework
lock
Another one from Bezos for those big life decisions, it simply asks whether you'll regret your action or non-action in the future.
Find out more about Regret Minimisation Framework and add it to your Latticework of Mental Models here.
Risk Matrix
lock
A simple way to check your decision against potential risks and pitfalls.
Find out more about Risk Matrix and add it to your Latticework of Mental Models here.
WRAP Decision Process
This approach from the Heath brothers sets out to mitigate four of the most common decision-making problems.
Find out more about WRAP Decision Process and add it to your Latticework of Mental Models here.
Return to top
COMPLEX DECISION-MAKING
Ready to take your decision making to a whole other level? Start here.
Cynefin Framework
Use this framework to explore whether you are indeed in more complex, or complicated territory and ensure that you adjust your decision-making approach accordingly. A critical starting point to contextualise what tools and frameworks might be most relevant to your situation.
Find out more about Cynefin Framework and add it to your Latticework of Mental Models here.
OODA Loop
An iterative decision-making process that was inspired by fighter pilots and plays well with Cynefin.
Find out more about OODA Loop and add it to your Latticework of Mental Models here.
MoSCoW Method
lock
You're not necessarily going to get everything from your decision, so break down your requirements more clearly with the MOSCOW model. A good one to combine with Satisficing.
Find out more about MoSCoW Method and add it to your Latticework of Mental Models here.
Second-Order Thinking
lock
It's tempting to just consider the next step and immediate consequence with a decision, but take a moment to look downstream with Second-Order Thinking.
Find out more about Second-Order Thinking and add it to your Latticework of Mental Models here.
DIBB Framework
Want a more data-driven approach to your decision-making? You might want to use this framework that was created by Spotify.
Find out more about DIBB Framework and add it to your Latticework of Mental Models here.
Riskiest Assumption Test
Finally, before you commit to a Minimum Viable Product or course of action, why not test your Riskiest Assumption?
Find out more about Riskiest Assumption Test and add it to your Latticework of Mental Models here.
Return to top
Categories:

Premium content

Please do login or sign up to see premium contect

Subscription expired!

Please renew your subscription to access this feature.
note My Notes
    Nothing here yet. Join ModelThinkers and login to be the first to comment.

You Might Also Like:

You Might Also Like:

- Actionable summaries of the world's most powerful ideas.