7 Steps of the Decision Making Process

Common Challenges of Decision Making
Although following the steps outlined above will help you make more effective decisions, there are some pitfalls to look out for. Here are common challenges you may face, along with best practices to help you avoid them. 

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  Having too much or not enough information. Gathering relevant information is key when approaching the decision making process, but it’s important to identify how much background information is truly required. “An overload of information can leave you confused and misguided, and prevents you from following your intuition,” according to Corporate Wellness Magazine.
  

In addition, relying on one single source of information can lead to bias and misinformation, which can have disastrous effects down the line.

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  Misidentifying the problem. In many cases, the issues surrounding your decision will be obvious. However, there will be times when the decision is complex and you aren’t sure where the main issue lies. Conduct thorough research and speak with internal experts who experience the problem firsthand in order to mitigate this. It will save you time and resources in the long run, Corporate Wellness Magazine says.
  

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  Overconfidence in the outcome. Even if you follow the steps of the decision making process, there is still a chance that the outcome won’t be exactly what you had in mind. That’s why it’s so important to identify a valid option that is plausible and achievable. Being overconfident in an unlikely outcome can lead to adverse results.
  

Decision making is a vital skill in the business workplace, particularly for managers and those in leadership positions. Following a logical procedure like the one outlined here, along with being aware of common challenges, can help ensure both thoughtful decision making and positive results.
Reasons Why You Make Bad Decisions
How many decisions do you think you make during the average day? Dozens? Hundreds, perhaps? Psychologists believe that the number is actually in the thousands. Some of these decisions have resounding effects over the course of our lives (like whether or not to go to college, get married, or have kids), while others are relatively trivial (like whether to have a ham or turkey sandwich for lunch).
Some of these choices turn out to be really good (you choose a college major that then leads to a rewarding career), while others end up being not so great (the turkey sandwich you selected was awful and it upset your stomach).
So as you look back at your life and think about some of the poor choices you have made, you might find yourself wondering exactly why you made those decisions that seem so poor now in retrospect. Why did you marry someone who was all wrong for you? Why did you buy that overpriced compact car when you have four kids and need a bigger vehicle? What were you thinking when you bought those awful high-waisted jeans last fall?
While it goes without saying that you will probably continue to make bad decisions, you can gain a deeper understanding of the process behind these sometimes irrational choices. There are a number of factors that contribute to poor choices and knowing how these processes work and influence your thinking can perhaps help you to make better decisions in the future.