A decision-maker may never be able to examine every possible option before making a decision. The assumption that one now has complete information for decision making is in itself somewhat unrealistic.
Satisficers make their life easier and less complicated by accepting good enough and moving on.
The main reason why decision-making is hard is that every decision makes us go through a process that is most times difficult and complex, and having difficulties with any part of it can hinder the whole process.
The emotional difficulty that we face when we need to pick only one of multiple possible options means that we have to forego several alternatives that we may find appealing. This is associated with the concept of FOMO (the fear of missing out).
The decision-making process can be very demanding, from a cognitive and an emotional perspective. Also, the act of making a decision is tiring in itself, since it depletes the cognitive resources.
Being tired and sleep-deprived can make it more difficult for us to process information, and more likely for us to suffer from various cognitive biases that get in the way of making good decisions.
“The existence of multiple alternatives makes it easy for us to imagine alternatives that don’t exist—alternatives that combine the attractive features of the ones that do exist. And to the extent that we engage our imaginations in this way, we will be even less satisfied with the alternative we end up choosing. So… a greater variety of choices actually makes us feel worse.”
Decision making is critical to entrepreneurs. Every day, you have to set out on a course of action, choose tactics, evaluate results, and otherwise choose from arrays of options. And yet, making decisions can be much trickier than it would seem. Here are four common mistakes that can trip you up.
Monumentalizing the Trivial. Place a limit on how long you're willing to spend addressing the issue. When the time ends, make your choice and move on.
Dredging Sunk Costs. Estimate how much the decision would take in total to follow through. If the cost is higher than the benefit, change your decision.
Drowning in Data. Identify less than 10 pieces of relevant data that will have a strong impact on your decision's outcome. Then forget everything else.
Do-or-Die Mentality. Realize that every decision is temporary. Use an overall decision-making strategy that stretches over time, not that imagines each moment to be the most critical one for the business.
Recently, Mike Hall, 48, a management consultant based in Winchester, decided to get ahead with Christmas preparations. "Do I buy the free range bronze turkey for 10-12, or 12-14, even though there are only seven of us for Christmas Day?" he wondered, attempting to tot up all the different variables.