Enabling Better Decisions
Making decisions is an integral part of everyday life, both at home and at work. The quality of decisions people make can have a huge impact on their company’s success or failure, as well as significantly affecting job satisfaction and potentially career progression. Nowadays it is very common for employers to empower staff in an attempt to maximise their contribution. However this can backfire if people can’t get the information they need as they are likely to end up frustrated and demotivated. It isn’t enough just to empower people, they also need to be enabled; to be given the right tools to access the information they need when they need it. It is also important to understand how people make decisions and what they can do to become more effective. Critical thinking is a process that focuses on the rational basis for what we believe and it helps us to deal with the positions other people take. It also provides clarity and understanding about our own thoughts. Critical thinking, combined with creative thinking, (where solutions aren’t limited by self-imposed boundaries) allows us to come up with new ways of addressing problems.
The Rational Decision Making Model, is a multi-step process for making logically sound decisions that aims to follow an orderly path from problem identification through to the solution. However, it is rarely applied in the real world as it time consuming and complex. The reality is that we tend to apply rule of thumb or go with what we know when making decisions. Nobel prize-winning author Herbert Simon came up with the concept of bounded rationality. This is the idea that when individuals make decisions they are affected by a number of limiting factors: -
- A lack of complete or fully accurate information
- A scarcity of time and resources required for more information and to formulate a full spectrum of options
- An inability to retain more than a small amount of relevant information in our memory
- Intelligence and perceptual limitations that inhibit our ability to calculate optimal outcomes
As a result we tend to accept what’s reasonable, a satisfactory solution, as opposed to investing time in achieving the optimal response. So how can we limit the impact of bounded rationality and help decision makers apply good rational decision making, without it being a lengthy and time consuming process? At Panintelligence we enable people to make better decisions by:-
- Giving people easy access to the actionable information they need in real time
- Providing people with the opportunity to explore data for themselves, thereby accessing the full spectrum of information available to them to gain new insights
- Providing data in a striking and simple to understand visual format. Our visual short-term memory is the most robust and capable of understanding information which can provide the basis for decision making
- Simplifying reporting so that people have easy access to business KPIs and by setting up proactive alerts when key thresholds are crossed
Panintelligence delivers solutions to the problems encountered by bounded rationality and helps people to engage with a more rational, creative and effective process for decision making, leading to innovative and creative solutions and ultimately improved performance.