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8 Steps in the Decision-Making Process

• 04 Feb 2020

Strong decision-making skills are essential for newly appointed and seasoned managers alike. The ability to navigate complex challenges and develop a plan can not only lead to more effective team management but drive key organizational change initiatives and objectives.

Despite decision-making’s importance in business, a recent survey by McKinsey shows that just 20 percent of professionals believe their organizations excel at it. Survey respondents noted that, on average, they spend 37 percent of their time making decisions, but more than half of it’s used ineffectively.

For managers, it’s critical to ensure effective decisions are made for their organizations’ success. Every managerial decision must be accompanied by research and data , collaboration, and alternative solutions.

Few managers, however, reap the benefits of making more thoughtful choices due to undeveloped decision-making models.

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Why Is Making Decisions Important?

According to Harvard Business School Professor Leonard Schlesinger, who’s featured in the online course Management Essentials , most managers view decision-making as a single event, rather than a process. This can lead to managers overestimating their abilities to influence outcomes and closing themselves off from alternative perspectives and diverse ways of thinking.

“The reality is, it’s very rare to find a single point in time where ‘a decision of significance’ is made and things go forward from there,” Schlesinger says. “Embedded in this work is the notion that what we’re really talking about is a process. The role of the manager in managing that process is actually quite straightforward, yet, at the same time, extraordinarily complex.”

If you want to further your business knowledge and be more effective in your role, it’s critical to become a strong decision-maker. Here are eight steps in the decision-making process you can employ to become a better manager and have greater influence in your organization.

Steps in the Decision-Making Process

1. frame the decision.

Pinpointing the issue is the first step to initiating the decision-making process. Ensure the problem is carefully analyzed, clearly defined, and everyone involved in the outcome agrees on what needs to be solved. This process will give your team peace of mind that each key decision is based on extensive research and collaboration.

Schlesinger says this initial action can be challenging for managers because an ill-formed question can result in a process that produces the wrong decision.

“The real issue for a manager at the start is to make sure they are actively working to shape the question they’re trying to address and the decision they’re trying to have made,” Schlesinger says. “That’s not a trivial task.”

2. Structure Your Team

Managers must assemble the right people to navigate the decision-making process.

“The issue of who’s going to be involved in helping you to make that decision is one of the most central issues you face,” Schlesinger says. “The primary issue being the membership of the collection of individuals or group that you’re bringing together to make that decision.”

As you build your team, Schlesinger advises mapping the technical, political, and cultural underpinnings of the decision that needs to be made and gathering colleagues with an array of skills and experience levels to help you make an informed decision. .

“You want some newcomers who are going to provide a different point of view and perspective on the issue you’re dealing with,” he says. “At the same time, you want people who have profound knowledge and deep experience with the problem.”

It’s key to assign decision tasks to colleagues and invite perspectives that uncover blindspots or roadblocks. Schlesinger notes that attempting to arrive at the “right answer” without a team that will ultimately support and execute it is a “recipe for failure.”

3. Consider the Timeframe

This act of mapping the issue’s intricacies should involve taking the decision’s urgency into account. Business problems with significant implications sometimes allow for lengthier decision-making processes, whereas other challenges call for more accelerated timelines.

“As a manager, you need to shape the decision-making process in terms of both of those dimensions: The criticality of what it is you’re trying to decide and, more importantly, how quickly it needs to get decided given the urgency,” Schlesinger says. “The final question is, how much time you’re going to provide yourself and the group to invest in both problem diagnosis and decisions.”

4. Establish Your Approach

In the early stages of the decision-making process, it’s critical to set ground rules and assign roles to team members. Doing so can help ensure everyone understands how they contribute to problem-solving and agrees on how a solution will be reached.

“It’s really important to get clarity upfront around the roles people are going to play and the ways in which decisions are going to get made,” Schlesinger says. “Often, managers leave that to chance, so people self-assign themselves to roles in ways that you don’t necessarily want, and the decision-making process defers to consensus, which is likely to lead to a lower evaluation of the problem and a less creative solution.”

5. Encourage Discussion and Debate

One of the issues of leading a group that defaults to consensus is that it can shut out contrarian points of view and deter inventive problem-solving. Because of this potential pitfall, Schlesinger notes, you should designate roles that focus on poking holes in arguments and fostering debate.

“What we’re talking about is establishing a process of devil’s advocacy, either in an individual or a subgroup role,” he says. “That’s much more likely to lead to a deeper critical evaluation and generate a substantial number of alternatives.”

Schlesinger adds that this action can take time and potentially disrupt group harmony, so it’s vital for managers to guide the inner workings of the process from the outset to ensure effective collaboration and guarantee more quality decisions will be made.

“What we need to do is establish norms in the group that enable us to be open to a broader array of data and decision-making processes,” he says. “If that doesn’t happen upfront, but in the process without a conversation, it’s generally a source of consternation and some measure of frustration.”

Related: 3 Group Decision-Making Techniques for Success

6. Navigate Group Dynamics

In addition to creating a dynamic in which candor and debate are encouraged, there are other challenges you need to navigate as you manage your team throughout the decision-making process.

One is ensuring the size of the group is appropriate for the problem and allows for an efficient workflow.

“In getting all the people together that have relevant data and represent various political and cultural constituencies, each incremental member adds to the complexity of the decision-making process and the amount of time it takes to get a decision made and implemented,” Schlesinger says.

Another task, he notes, is identifying which parts of the process can be completed without face-to-face interaction.

“There’s no question that pieces of the decision-making process can be deferred to paper, email, or some app,” Schlesinger says. “But, at the end of the day, given that so much of decision-making requires high-quality human interaction, you need to defer some part of the process for ill-structured and difficult tasks to a face-to-face meeting.”

7. Ensure the Pieces Are in Place for Implementation

Throughout your team’s efforts to arrive at a decision, you must ensure you facilitate a process that encompasses:

• Shared goals that were presented upfront
• Alternative options that have been given rigorous thought and fair consideration
• Sound methods for exploring decisions’ consequences

According to Schlesinger, these components profoundly influence the quality of the solution that’s ultimately identified and the types of decisions that’ll be made in the future.

“In the general manager’s job, the quality of the decision is only one part of the equation,” he says. “All of this is oriented toward trying to make sure that once a decision is made, we have the right groupings and the right support to implement.”

8. Achieve Closure and Alignment

Achieving closure in the decision-making process requires arriving at a solution that sufficiently aligns members of your group and garners enough support to implement it.

As with the other phases of decision-making, clear communication ensures your team understands and commits to the plan.

In a video interview for the online course Management Essentials , Harvard Business School Dean Nitin Nohria says it’s essential to explain the rationale behind the decision to your employees.

“If it’s a decision that you have to make, say, ‘I know there were some of you who thought differently, but let me tell you why we went this way,’” Nohria says. “This is so the people on the other side feel heard and recognize the concerns they raised are things you’ve tried to incorporate into the decision and, as implementation proceeds, if those concerns become real, then they’ll be attended to.”

How to Improve Your Decision-Making

An in-depth understanding of the decision-making process is vital for all managers. Whether you’re an aspiring manager aiming to move up at your organization or a seasoned executive who wants to boost your job performance, honing your approach to decision-making can improve your managerial skills and equip you with the tools to advance your career.

Do you want to become a more effective decision-maker? Explore Management Essentials —one of our online leadership and management courses —to learn how you can influence the context and environment in which decisions get made.

This article was update on July 15, 2022. It was originally published on February 4, 2020.

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The SkillsYouNeed Guide to Interpersonal Skills

Making decisions and solving problems are two key areas in life, whether you are at home or at work. Whatever you’re doing, and wherever you are, you are faced with countless decisions and problems, both small and large, every day.

Many decisions and problems are so small that we may not even notice them. Even small decisions, however, can be overwhelming to some people. They may come to a halt as they consider their dilemma and try to decide what to do.

Small and Large Decisions

In your day-to-day life you're likely to encounter numerous 'small decisions', including, for example:

Tea or coffee?

What shall I have in my sandwich? Or should I have a salad instead today?

What shall I wear today?

Larger decisions may occur less frequently but may include:

Should we repaint the kitchen? If so, what colour?

Should we relocate?

Should I propose to my partner? Do I really want to spend the rest of my life with him/her?

These decisions, and others like them, may take considerable time and effort to make.

The relationship between decision-making and problem-solving is complex. Decision-making is perhaps best thought of as a key part of problem-solving: one part of the overall process.

Our approach at Skills You Need is to set out a framework to help guide you through the decision-making process. You won’t always need to use the whole framework, or even use it at all, but you may find it useful if you are a bit ‘stuck’ and need something to help you make a difficult decision.

Decision Making

Effective Decision-Making

This page provides information about ways of making a decision, including basing it on logic or emotion (‘gut feeling’). It also explains what can stop you making an effective decision, including too much or too little information, and not really caring about the outcome.

A Decision-Making Framework

This page sets out one possible framework for decision-making.

The framework described is quite extensive, and may seem quite formal. But it is also a helpful process to run through in a briefer form, for smaller problems, as it will help you to make sure that you really do have all the information that you need.

Problem Solving

Introduction to Problem-Solving

This page provides a general introduction to the idea of problem-solving. It explores the idea of goals (things that you want to achieve) and barriers (things that may prevent you from achieving your goals), and explains the problem-solving process at a broad level.

The first stage in solving any problem is to identify it, and then break it down into its component parts. Even the biggest, most intractable-seeming problems, can become much more manageable if they are broken down into smaller parts. This page provides some advice about techniques you can use to do so.

Sometimes, the possible options to address your problem are obvious. At other times, you may need to involve others, or think more laterally to find alternatives. This page explains some principles, and some tools and techniques to help you do so.

Having generated solutions, you need to decide which one to take, which is where decision-making meets problem-solving. But once decided, there is another step: to deliver on your decision, and then see if your chosen solution works. This page helps you through this process.

‘Social’ problems are those that we encounter in everyday life, including money trouble, problems with other people, health problems and crime. These problems, like any others, are best solved using a framework to identify the problem, work out the options for addressing it, and then deciding which option to use.

This page provides more information about the key skills needed for practical problem-solving in real life.

Further Reading from Skills You Need

The Skills You Need Guide to Interpersonal Skills eBooks.

Develop your interpersonal skills with our series of eBooks. Learn about and improve your communication skills, tackle conflict resolution, mediate in difficult situations, and develop your emotional intelligence.

Guiding you through the key skills needed in life

As always at Skills You Need, our approach to these key skills is to provide practical ways to manage the process, and to develop your skills.

Neither problem-solving nor decision-making is an intrinsically difficult process and we hope you will find our pages useful in developing your skills.

Start with: Decision Making Problem Solving

See also: Improving Communication Interpersonal Communication Skills Building Confidence

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This is how effective teams navigate the decision-making process

Zero Magic 8 Balls required.

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Flipping a coin. Throwing a dart at a board. Pulling a slip of paper out of a hat.

Sure, they’re all ways to make a choice. But they all hinge on random chance rather than analysis, reflection, and strategy — you know, the things you actually need to make the big, meaty decisions that have major impacts.

So, set down that Magic 8 Ball and back away slowly. Let’s walk through the standard framework for decision-making that will help you and your team pinpoint the problem, consider your options, and make your most informed selection. Here’s a closer look at each of the seven steps of the decision-making process, and how to approach each one. 

Step 1: Identify the decision

Most of us are eager to tie on our superhero capes and jump into problem-solving mode — especially if our team is depending on a solution. But you can’t solve a problem until you have a full grasp on what it actually is .

This first step focuses on getting the lay of the land when it comes to your decision. What specific problem are you trying to solve? What goal are you trying to achieve? 

How to do it: 

• Use the 5 whys analysis to go beyond surface-level symptoms and understand the root cause of a problem.
• Try problem framing to dig deep on the ins and outs of whatever problem your team is fixing. The point is to define the problem, not solve it. 

⚠️ Watch out for: Decision fatigue , which is the tendency to make worse decisions as a result of needing to make too many of them. Making choices is mentally taxing , which is why it’s helpful to pinpoint one decision at a time. 

2. Gather information

Your team probably has a few hunches and best guesses, but those can lead to knee-jerk reactions. Take care to invest adequate time and research into your decision.

This step is when you build your case, so to speak. Collect relevant information — that could be data, customer stories, information about past projects, feedback, or whatever else seems pertinent. You’ll use that to make decisions that are informed, rather than impulsive.

• Host a team mindmapping session to freely explore ideas and make connections between them. It can help you identify what information will best support the process.
• Create a project poster to define your goals and also determine what information you already know and what you still need to find out. 

⚠️ Watch out for: Information bias , or the tendency to seek out information even if it won’t impact your action. We have the tendency to think more information is always better, but pulling together a bunch of facts and insights that aren’t applicable may cloud your judgment rather than offer clarity. 

3. Identify alternatives

Use divergent thinking to generate fresh ideas in your next brainstorm

Blame the popularity of the coin toss, but making a decision often feels like choosing between only two options. Do you want heads or tails? Door number one or door number two? In reality, your options aren’t usually so cut and dried. Take advantage of this opportunity to get creative and brainstorm all sorts of routes or solutions. There’s no need to box yourselves in. 

• Use the Six Thinking Hats technique to explore the problem or goal from all sides: information, emotions and instinct, risks, benefits, and creativity. It can help you and your team break away from your typical roles or mindsets and think more freely.
• Try brainwriting so team members can write down their ideas independently before sharing with the group. Research shows that this quiet, lone thinking time can boost psychological safety and generate more creative suggestions .

⚠️ Watch out for: Groupthink , which is the tendency of a group to make non-optimal decisions in the interest of conformity. People don’t want to rock the boat, so they don’t speak up. 

4. Consider the evidence

Armed with your list of alternatives, it’s time to take a closer look and determine which ones could be worth pursuing. You and your team should ask questions like “How will this solution address the problem or achieve the goal?” and “What are the pros and cons of this option?” 

Be honest with your answers (and back them up with the information you already collected when you can). Remind the team that this isn’t about advocating for their own suggestions to “win” — it’s about whittling your options down to the best decision. 

How to do it:

• Use a SWOT analysis to dig into the strengths, weaknesses, opportunities, and threats of the options you’re seriously considering.
• Run a project trade-off analysis to understand what constraints (such as time, scope, or cost) the team is most willing to compromise on if needed. 

⚠️ Watch out for: Extinction by instinct , which is the urge to make a decision just to get it over with. You didn’t come this far to settle for a “good enough” option! 

5. Choose among the alternatives

This is it — it’s the big moment when you and the team actually make the decision. You’ve identified all possible options, considered the supporting evidence, and are ready to choose how you’ll move forward.

However, bear in mind that there’s still a surprising amount of room for flexibility here. Maybe you’ll modify an alternative or combine a few suggested solutions together to land on the best fit for your problem and your team. 

• Use the DACI framework (that stands for “driver, approver, contributor, informed”) to understand who ultimately has the final say in decisions. The decision-making process can be collaborative, but eventually someone needs to be empowered to make the final call.
• Try a simple voting method for decisions that are more democratized. You’ll simply tally your team’s votes and go with the majority. 

⚠️ Watch out for: Analysis paralysis , which is when you overthink something to such a great degree that you feel overwhelmed and freeze when it’s time to actually make a choice. 

6. Take action

Making a big decision takes a hefty amount of work, but it’s only the first part of the process — now you need to actually implement it. 

It’s tempting to think that decisions will work themselves out once they’re made. But particularly in a team setting, it’s crucial to invest just as much thought and planning into communicating the decision and successfully rolling it out. 

• Create a stakeholder communications plan to determine how you’ll keep various people — direct team members, company leaders, customers, or whoever else has an active interest in your decision — in the loop on your progress.
• Define the goals, signals, and measures of your decision so you’ll have an easier time aligning the team around the next steps and determining whether or not they’re successful. 

⚠️Watch out for: Self-doubt, or the tendency to question whether or not you’re making the right move. While we’re hardwired for doubt , now isn’t the time to be a skeptic about your decision. You and the team have done the work, so trust the process. 

7. Review your decision

9 retrospective techniques that won’t bore your team to tears

As the decision itself starts to shake out, it’s time to take a look in the rearview mirror and reflect on how things went.

Did your decision work out the way you and the team hoped? What happened? Examine both the good and the bad. What should you keep in mind if and when you need to make this sort of decision again? 

• Do a 4 L’s retrospective to talk through what you and the team loved, loathed, learned, and longed for as a result of that decision.
• Celebrate any wins (yes, even the small ones ) related to that decision. It gives morale a good kick in the pants and can also help make future decisions feel a little less intimidating.

⚠️ Watch out for: Hindsight bias , or the tendency to look back on events with the knowledge you have now and beat yourself up for not knowing better at the time. Even with careful thought and planning, some decisions don’t work out — but you can only operate with the information you have at the time. 

Making smart decisions about the decision-making process

You’re probably picking up on the fact that the decision-making process is fairly comprehensive. And the truth is that the model is likely overkill for the small and inconsequential decisions you or your team members need to make.

Deciding whether you should order tacos or sandwiches for your team offsite doesn’t warrant this much discussion and elbow grease. But figuring out which major project to prioritize next? That requires some careful and collaborative thought. 

It all comes back to the concept of satisficing versus maximizing , which are two different perspectives on decision making. Here’s the gist:

• Maximizers aim to get the very best out of every single decision.
• Satisficers are willing to settle for “good enough” rather than obsessing over achieving the best outcome.

One of those isn’t necessarily better than the other — and, in fact, they both have their time and place.

A major decision with far-reaching impacts deserves some fixation and perfectionism. However, hemming and hawing over trivial choices ( “Should we start our team meeting with casual small talk or a structured icebreaker?” ) will only cause added stress, frustration, and slowdowns. 

As with anything else, it’s worth thinking about the potential impacts to determine just how much deliberation and precision a decision actually requires. 

Decision-making is one of those things that’s part art and part science. You’ll likely have some gut feelings and instincts that are worth taking into account. But those should also be complemented with plenty of evidence, evaluation, and collaboration.

The decision-making process is a framework that helps you strike that balance. Follow the seven steps and you and your team can feel confident in the decisions you make — while leaving the darts and coins where they belong.

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Overview of the Problem-Solving Mental Process

Kendra Cherry, MS, is a psychosocial rehabilitation specialist, psychology educator, and author of the "Everything Psychology Book."

Rachel Goldman, PhD FTOS, is a licensed psychologist, clinical assistant professor, speaker, wellness expert specializing in eating behaviors, stress management, and health behavior change.

• Identify the Problem
• Define the Problem
• Form a Strategy
• Organize Information
• Allocate Resources
• Monitor Progress
• Evaluate the Results

Frequently Asked Questions

Problem-solving is a mental process that involves discovering, analyzing, and solving problems. The ultimate goal of problem-solving is to overcome obstacles and find a solution that best resolves the issue.

The best strategy for solving a problem depends largely on the unique situation. In some cases, people are better off learning everything they can about the issue and then using factual knowledge to come up with a solution. In other instances, creativity and insight are the best options.

It is not necessary to follow problem-solving steps sequentially, It is common to skip steps or even go back through steps multiple times until the desired solution is reached.

In order to correctly solve a problem, it is often important to follow a series of steps. Researchers sometimes refer to this as the problem-solving cycle. While this cycle is portrayed sequentially, people rarely follow a rigid series of steps to find a solution.

The following steps include developing strategies and organizing knowledge.

1. Identifying the Problem

While it may seem like an obvious step, identifying the problem is not always as simple as it sounds. In some cases, people might mistakenly identify the wrong source of a problem, which will make attempts to solve it inefficient or even useless.

Some strategies that you might use to figure out the source of a problem include :

• Asking questions about the problem
• Breaking the problem down into smaller pieces
• Looking at the problem from different perspectives
• Conducting research to figure out what relationships exist between different variables

2. Defining the Problem

After the problem has been identified, it is important to fully define the problem so that it can be solved. You can define a problem by operationally defining each aspect of the problem and setting goals for what aspects of the problem you will address

At this point, you should focus on figuring out which aspects of the problems are facts and which are opinions. State the problem clearly and identify the scope of the solution.

3. Forming a Strategy

After the problem has been identified, it is time to start brainstorming potential solutions. This step usually involves generating as many ideas as possible without judging their quality. Once several possibilities have been generated, they can be evaluated and narrowed down.

The next step is to develop a strategy to solve the problem. The approach used will vary depending upon the situation and the individual's unique preferences. Common problem-solving strategies include heuristics and algorithms.

• Heuristics are mental shortcuts that are often based on solutions that have worked in the past. They can work well if the problem is similar to something you have encountered before and are often the best choice if you need a fast solution.
• Algorithms are step-by-step strategies that are guaranteed to produce a correct result. While this approach is great for accuracy, it can also consume time and resources.

Heuristics are often best used when time is of the essence, while algorithms are a better choice when a decision needs to be as accurate as possible.

4. Organizing Information

Before coming up with a solution, you need to first organize the available information. What do you know about the problem? What do you not know? The more information that is available the better prepared you will be to come up with an accurate solution.

When approaching a problem, it is important to make sure that you have all the data you need. Making a decision without adequate information can lead to biased or inaccurate results.

5. Allocating Resources

Of course, we don't always have unlimited money, time, and other resources to solve a problem. Before you begin to solve a problem, you need to determine how high priority it is.

If it is an important problem, it is probably worth allocating more resources to solving it. If, however, it is a fairly unimportant problem, then you do not want to spend too much of your available resources on coming up with a solution.

At this stage, it is important to consider all of the factors that might affect the problem at hand. This includes looking at the available resources, deadlines that need to be met, and any possible risks involved in each solution. After careful evaluation, a decision can be made about which solution to pursue.

6. Monitoring Progress

After selecting a problem-solving strategy, it is time to put the plan into action and see if it works. This step might involve trying out different solutions to see which one is the most effective.

It is also important to monitor the situation after implementing a solution to ensure that the problem has been solved and that no new problems have arisen as a result of the proposed solution.

Effective problem-solvers tend to monitor their progress as they work towards a solution. If they are not making good progress toward reaching their goal, they will reevaluate their approach or look for new strategies .

7. Evaluating the Results

After a solution has been reached, it is important to evaluate the results to determine if it is the best possible solution to the problem. This evaluation might be immediate, such as checking the results of a math problem to ensure the answer is correct, or it can be delayed, such as evaluating the success of a therapy program after several months of treatment.

Once a problem has been solved, it is important to take some time to reflect on the process that was used and evaluate the results. This will help you to improve your problem-solving skills and become more efficient at solving future problems.

A Word From Verywell​

It is important to remember that there are many different problem-solving processes with different steps, and this is just one example. Problem-solving in real-world situations requires a great deal of resourcefulness, flexibility, resilience, and continuous interaction with the environment.

Get Advice From The Verywell Mind Podcast

Hosted by therapist Amy Morin, LCSW, this episode of The Verywell Mind Podcast shares how you can stop dwelling in a negative mindset.

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You can become a better problem solving by:

• Practicing brainstorming and coming up with multiple potential solutions to problems
• Being open-minded and considering all possible options before making a decision
• Breaking down problems into smaller, more manageable pieces
• Asking for help when needed
• Researching different problem-solving techniques and trying out new ones
• Learning from mistakes and using them as opportunities to grow

It's important to communicate openly and honestly with your partner about what's going on. Try to see things from their perspective as well as your own. Work together to find a resolution that works for both of you. Be willing to compromise and accept that there may not be a perfect solution.

Take breaks if things are getting too heated, and come back to the problem when you feel calm and collected. Don't try to fix every problem on your own—consider asking a therapist or counselor for help and insight.

If you've tried everything and there doesn't seem to be a way to fix the problem, you may have to learn to accept it. This can be difficult, but try to focus on the positive aspects of your life and remember that every situation is temporary. Don't dwell on what's going wrong—instead, think about what's going right. Find support by talking to friends or family. Seek professional help if you're having trouble coping.

Davidson JE, Sternberg RJ, editors.  The Psychology of Problem Solving .  Cambridge University Press; 2003. doi:10.1017/CBO9780511615771

Sarathy V. Real world problem-solving .  Front Hum Neurosci . 2018;12:261. Published 2018 Jun 26. doi:10.3389/fnhum.2018.00261

By Kendra Cherry, MSEd Kendra Cherry, MS, is a psychosocial rehabilitation specialist, psychology educator, and author of the "Everything Psychology Book."

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7 important steps in the decision making process

The decision making process is a method of gathering information, assessing alternatives, and making a final choice with the goal of making the best decision possible. In this article, we detail the step-by-step process on how to make a good decision and explain different decision making methodologies.

We make decisions every day. Take the bus to work or call a car? Chocolate or vanilla ice cream? Whole milk or two percent?

There's an entire process that goes into making those tiny decisions, and while these are simple, easy choices, how do we end up making more challenging decisions? 

At work, decisions aren't as simple as choosing what kind of milk you want in your latte in the morning. That’s why understanding the decision making process is so important. 

What is the decision making process?

The decision making process is the method of gathering information, assessing alternatives, and, ultimately, making a final choice. 

Decision-making tools for agile businesses

In this ebook, learn how to equip employees to make better decisions—so your business can pivot, adapt, and tackle challenges more effectively than your competition.

The 7 steps of the decision making process

Step 1: identify the decision that needs to be made.

When you're identifying the decision, ask yourself a few questions: 

What is the problem that needs to be solved?

What is the goal you plan to achieve by implementing this decision?

How will you measure success?

These questions are all common goal setting techniques that will ultimately help you come up with possible solutions. When the problem is clearly defined, you then have more information to come up with the best decision to solve the problem.

Step 2: Gather relevant information

​Gathering information related to the decision being made is an important step to making an informed decision. Does your team have any historical data as it relates to this issue? Has anybody attempted to solve this problem before?

It's also important to look for information outside of your team or company. Effective decision making requires information from many different sources. Find external resources, whether it’s doing market research, working with a consultant, or talking with colleagues at a different company who have relevant experience. Gathering information helps your team identify different solutions to your problem.

Step 3: Identify alternative solutions

This step requires you to look for many different solutions for the problem at hand. Finding more than one possible alternative is important when it comes to business decision-making, because different stakeholders may have different needs depending on their role. For example, if a company is looking for a work management tool, the design team may have different needs than a development team. Choosing only one solution right off the bat might not be the right course of action. 

Step 4: Weigh the evidence

This is when you take all of the different solutions you’ve come up with and analyze how they would address your initial problem. Your team begins identifying the pros and cons of each option, and eliminating alternatives from those choices.

There are a few common ways your team can analyze and weigh the evidence of options:

Pros and cons list

SWOT analysis

Decision matrix

Step 5: Choose among the alternatives

The next step is to make your final decision. Consider all of the information you've collected and how this decision may affect each stakeholder. 

Sometimes the right decision is not one of the alternatives, but a blend of a few different alternatives. Effective decision-making involves creative problem solving and thinking out of the box, so don't limit you or your teams to clear-cut options.

One of the key values at Asana is to reject false tradeoffs. Choosing just one decision can mean losing benefits in others. If you can, try and find options that go beyond just the alternatives presented.

Step 6: Take action

Once the final decision maker gives the green light, it's time to put the solution into action. Take the time to create an implementation plan so that your team is on the same page for next steps. Then it’s time to put your plan into action and monitor progress to determine whether or not this decision was a good one. 

Step 7: Review your decision and its impact (both good and bad)

Once you’ve made a decision, you can monitor the success metrics you outlined in step 1. This is how you determine whether or not this solution meets your team's criteria of success.

Here are a few questions to consider when reviewing your decision:

Did it solve the problem your team identified in step 1? 

Did this decision impact your team in a positive or negative way?

Which stakeholders benefited from this decision? Which stakeholders were impacted negatively?

If this solution was not the best alternative, your team might benefit from using an iterative form of project management. This enables your team to quickly adapt to changes, and make the best decisions with the resources they have. 

Types of decision making models

While most decision making models revolve around the same seven steps, here are a few different methodologies to help you make a good decision.

​Rational decision making models

This type of decision making model is the most common type that you'll see. It's logical and sequential. The seven steps listed above are an example of the rational decision making model. 

When your decision has a big impact on your team and you need to maximize outcomes, this is the type of decision making process you should use. It requires you to consider a wide range of viewpoints with little bias so you can make the best decision possible. 

Intuitive decision making models

This type of decision making model is dictated not by information or data, but by gut instincts. This form of decision making requires previous experience and pattern recognition to form strong instincts.

This type of decision making is often made by decision makers who have a lot of experience with similar kinds of problems. They have already had proven success with the solution they're looking to implement. 

Creative decision making model

The creative decision making model involves collecting information and insights about a problem and coming up with potential ideas for a solution, similar to the rational decision making model. 

The difference here is that instead of identifying the pros and cons of each alternative, the decision maker enters a period in which they try not to actively think about the solution at all. The goal is to have their subconscious take over and lead them to the right decision, similar to the intuitive decision making model. 

This situation is best used in an iterative process so that teams can test their solutions and adapt as things change.

Track key decisions with a work management tool

Tracking key decisions can be challenging when not documented correctly. Learn more about how a work management tool like Asana can help your team track key decisions, collaborate with teammates, and stay on top of progress all in one place.

Related resources

Fiedler’s Contingency Theory: Why leadership isn’t uniform

What is management by objectives (MBO)?

How to find alignment on AI

Grant management: A nonprofit’s guide

9 Key Steps for an Effective Decision Making Process [+Examples]

Last Updated on May 21, 2024 by Owen McGab Enaohwo

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Bad decisions are a significant reason why some of the biggest brands in the world went bankrupt. Businesses feel the impacts of such decisions as early as days after making them. Streaming companies’ subscribers have dropped drastically because of some changes they made to their content. 

Losing years of hard work instantly over something avoidable is difficult for anyone. Effective decision making is a skill that can be mastered by following proven decision-making models and tools, but what exactly are they, and how can you implement them?

SweetPrcoess simplifies the decision making process by facilitating communication and collaboration among teams with standardized workflow management tools. Sign up for a 14-day free trial without a credit card. 

Table of Contents

What Does the Decision Making Process Mean?

9 Key Steps For an Effective Decision Making Process

How to Build a Solid Decision-Making Process in Your Company Using SweetProcess

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The decision making process simply means a systematic guideline for choosing an alternative between two or more options. It’s a part of everyday life that transcends into business. The success or failure of any business venture results from the strategic decisions taken about it. This places a great responsibility on decision makers to tread with caution. 

Losses eventually lead to business failure. When an organization’s resources are drained to the bottom, there’s nothing left to sustain it. With the business environment ever-changing, one could argue that some losses are due to market volatility. Creating room for unforeseen circumstances is part of the decision-making process and allows you to navigate unfavorable outcomes. 

Business executives and leaders face the daunting task of decision-making with limited resources. This pressure could lead to decision-making fatigue, a condition in which leaders are too exhausted to make the right decisions. The decision-making process streamlines the selection of reasonable options and identifies the most suitable alternative to prevent decision fatigue. 

9 Key Steps For an Effective Decision Making Process 

One of the mistakes organizations make is waiting until a problem arises before developing a solution for resolving it. Such a reactive approach addresses problems on a surface level, neglecting its root causes. Adopting a proactive strategy in decision making enhances operations management by positioning businesses to operate from a vantage point. Here are some steps for creating an effective decision making process. 

Identify the Decision You Want to Make

Identifying the decision is pinpointing the problem the decision will solve. Failing to identify the problem may lead to distractions and mismanagement of resources. Ambiguous issues are costly to manage. Streamline the problem to the smallest possible units for clarity and use that to identify the decision to take. 

Structure Your Team

Single-handedly making a business decision is a recipe for disaster, as there’s only so much you know and can see from your position. You are better off building a diverse team of people who will bring different inputs to the table. Outline the dynamics of the decision and select people experienced in it. Create room for newbies who can bring fresh perspectives that haven’t been explored, as those ideas could yield better results. 

Establish Your Approach

A lack of approach in the decision making process breeds conflict with opinions clashing. Organize the process by assigning roles and delegating responsibilities to team members. Outline specific areas you want people to focus on and outline the flow of information. This prevents employees from turning the decision-making process into a competition about whose opinion is adopted.

Gather Relevant Information From Internal and External Sources

Good business decisions are based on evidence. Your organization may have encountered such a situation or something similar in the past; how was it handled? If the result is good, consider implementing the same strategy, considering any differences. Seek a completely different approach if the previous outcome wasn’t good. 

Consult external sources for information relating to a decision at hand. Resources such as market research, surveys, and case studies are very helpful. If you aren’t satisfied with your findings, engage consultants with expertise in that field for their professional input.

Promote Discussion and Debate

The decision-making process is flawed when there’s a consensus among team members too early. The goal is to find the best decision, not the most popular one. Create an environment for employees to air their views freely, even when those views aren’t popular. Having at least one person play the devil’s advocate is best. Great ideas will emerge from debating their views. 

Determine Potential Solutions and Weigh the Evidence 

Aim to have more than one decision option on the table and evaluate each one with evidence on the ground. Prevent sentiments by adopting standard frameworks such as SWOT analysis for the evaluation. Outlining the strengths, weaknesses, opportunities, and threats of each possible solution will reveal the best ones. 

Build Closure and Alignment

Team members can disagree while communicating their different points of view, but they must agree in the end for collective success. People will directly or indirectly push back on decisions they don’t like. Enlighten your team on the importance of being on the same page and supporting the final decision. If they were part of the decision-making processes, it shouldn’t be difficult to make them see why the decision was the best among other alternatives. Reiterate the importance of putting the interest of the business above personal interests.

Implement Your Decision

There’s no guarantee that a decision will be successful until it proves itself. It takes the collective efforts of the entire team to actualize desired outcomes from chosen alternatives. This phase of the decision making process is action based. What do you need to do, and who is the best person for the job? This is an opportunity to promote team spirit by delegating activities to people based on their strengths, even if they weren’t in support of the decision initially. Create an implementation plan for the entire team to work with and hold team members accountable for their responsibilities.

Review Your Decision and Its Impact

A great way to know if you and your team made the right decision is to review your performance. The results of every business decision become visible over time. Establish a substantial time for review and critically evaluate the outcomes. 

A focal point of the review is determining whether the decision solved the problem it was intended for. Focus on the problem being completely or significantly resolved, not partially. The decision failed if the problem still exists. Revisit the drawing board.

Team members are responsible for making decisions in the tasks they execute at work daily. The outcome of their decisions depends on how knowledgeable they are about said tasks. Organizations can increase employee efficiency by documenting standard operating procedures for tasks so they don’t need to make decisions for executing their duties regularly. To actualize such a proactive strategy, you need to leverage productivity tools like SweetProcess. 

SweetProcess is a workflow management software for documenting business processes, procedures, and policies for higher efficiency. It facilitates collaboration in the decision making process and ensures that chosen alternatives are successfully executed. 

Here are some of the core features of SweetProcess.

• Task management : Manage tasks from scratch to completion.
• Process maps: Create visual diagrams of processes to enhance decision making.
• Documentation: Document business processes , procedures, and policies seamlessly with new and existing templates. 
• Automatic content creation: Create content automatically with artificial intelligence. 
• Training: Train new and existing employees rapidly. 
• Knowledge base : Build public and private knowledge bases accessible to teams remotely.
• Version history: Create and manage multiple versions of documents. 
• Integration: Integrate more than 1,000 apps for increased productivity. 
• Collaboration: Collaborate with team members in real time. 
• Data reporting: Track work progress from reporting data in the dashboard. 

How to Create Procedures in SweetProcess Manually

Click on “Procedures” and “Create Procedure.” 

Enter your procedure title and click on “Continue.”

Click on the pencil icon beside the title.

Enter the procedure details in the content editor and click on “Finished Editing.” 

How to Document a Procedure in SweetProcess Automatically With SweetAI 

Enter the procedure title and click on “Write with SweetAI.”

Wait while the system generates the content. It only takes a few seconds.

Click the pencil icon to edit the content.

Click on “Approve” to publish the document.

How to Create Processes in SweetProcess

Click on “Processes” and “Create Process.”

Enter the process title and click on “Continue.”

Click on “Add Step.”

Click on “Procedure.”

Select the first task or procedure from the menu.

Click on “Add Step” and “Procedure” to add the next step in the process.

All the steps you added will show on the right. Click on “Approve” to publish the process. 

How to Create Business Policies in SweetProcess Manually

Click on “More.”

Select “Policies.”

 Click on “Create Policy.”

Write the title of your policy and click on “Continue.”

Click on the pencil icon to develop your policy.

Enter the details of your policy and click “Save changes.” 

How to Create Business Policies Automatically in SweetProcess With SweetAI

Select “Policies” and click on “Create Policy.”

Enter the title of the policy and click on “Write with SweetAI.” The system will generate the policy in seconds. 

SweetProcess is popular among businesses for streamlining operations and clarifying the decision-making process. Emma Mills, owner and founder of MiPa, a virtual assistant agency, understands that skilled employees are in a better position to make good decisions. She uses SweetProcess to train team members and confirm that they understand the training. “We onboard staff and team members quite regularly. The signing off, somebody actually signing their name to say, ‘Yeah, I’ve read this process. I understand and approve it…. We can see that they’ve fully understood and they’ve signed off that they’ve gone through these training modules,” Emma says.

Chris Dunning, founder and CEO at TechQuarters, a cloud solutions IT company, found that problems arise in business due to inadequate information. He uses SweetProcess to document his organization’s processes so he and his team will have the right information to execute tasks and make better decisions. 

“What you find is that something will go wrong, and we look back then and one of the teams will say, could we add this to SweetProcess? Because if this had been done, I wouldn’t have had this problem further down the line, and each individual would look at it and go, ‘Oh yeah, great.’ And the next time around, problem solved, because we do this extra step in the process,” Chris explains. 

SweetProcess is suitable for all kinds of industries, and it’s flexible to customize to your unique needs. Sign up for a 14-day free trial without a credit card to begin your business transformation journey. 

A decision-making model offers guidelines for choosing the best alternative among several options. It visualizes the decision making processes for stakeholders’ understanding, facilitates meaningful contributions, and provides metrics for measuring the impact of your decisions. There are several decision-making models to work with.

Rational Model

The rational decision making model thrives on logic. It requires listing the options at your disposal and highlighting their pros and cons. The goal is to identify the one with the lowest risk and highest benefits after comparing them. This decision-making model is time-consuming and unsuitable for urgent situations. Here are the steps involved:

• Identify the problem.
• Outline and measure the decision criteria.
• Gather and arrange related information.
• Analyze the situation. 
• Create a list of options.
• Examine your options and assign a measurement value to them.
• Pick the best options.
• Implement the decision.
• Review the decision.

Bounded Rationality Model

Bounded rationality is a decision-making model for making a choice based on the information at your disposal. If you operate in a fast-moving industry, you need to make great decisions quickly lest you lose opportunities. The bounded rationality model guides you in moving swiftly with the information at hand. Your decision may not be perfect in the long run, but it’s the best at the moment. 

Intuitive Model

The intuitive decision making model promotes following your instincts or intuition in making a decision. This model is best applied in business when you have ample experience or expertise in the subject. Your intuition will be a product of your professional judgment rather than sentiments. 

Recognition Primed Model

The recognition-primed decision-making model is similar to the rational model as it relies on expertise. However, it involves recognizing familiar patterns in a situation and developing solutions from a vantage point. Each potential solution is visualized from start to finish to have a clear picture of possible outcomes before selecting the best alternative. 

Decision Tree Model

A decision tree is a tree-like model depicting an action, its cost implications, possible outcomes, and consequences. It’s drawn as a flowchart and highlights the attributes of the decision in motion. Branches of the tree are the decision-making alternatives and their leaves are the outcomes of each alternative the decision maker takes. 

Political Model

The political decision-making model is a decentralized system that encourages stakeholders to participate in the decision-making process in a safe space. Team members can contribute and deliberate over ideas even when those ideas don’t align with existing rules and policies. Some people may be reluctant to share their opinions with a larger audience, especially when those opinions aren’t popular, so the model allows the creation of subgroups in the organization so people can express themselves to familiar faces. The decision of each subgroup is presented by their leader to the larger organization.

Incremental Model

The incremental decision-making model is a step-by-step approach to managing situations, eradicating the burden of making a massive decision at once. The focus is on the next logical action to take without necessarily considering the big picture which may be difficult to see. Focusing on boosting employee productivity per time, it’s handy when addressing complex situations with a lot of information to evaluate. 

The outcomes of business decisions are too significant to be based on chance. Showcasing good judgment continuously enhances an organization’s reputation and builds trust among customers. Decision-making tools enable businesses to approach decisions systematically for repetitive success. The top business decision-making tools include the following:

Decision Matrix

A decision matrix is a table with various columns containing the alternatives in a decision and their various attributes. It enables you to view all aspects of the alternatives and compare them side-by-side to determine the best choice. There’s room to outline essential criteria for the decision, and then weigh the alternatives’ attributes against the criteria to see which one meets your needs the most. 

SWOT Analysis

SWOT Analysis – an acronym for strengths, weaknesses, opportunities, and threats, is a tool for evaluating the different components of an idea for implementation. It helps in strategic planning by identifying the good and bad aspects of a decision ahead of time. An advantage of a SWOT analysis is the consideration of the internal and external factors of the decision. Factoring the results of your analysis into your plan gives your business a competitive edge. 

Pros and Cons List

A pros and cons list contains the advantages and disadvantages of the alternatives in a business decision. Every decision has its negatives, but it becomes problematic if they outweigh the positives. Creating a pros and cons list helps compare both aspects so you can lean on alternatives with more pros. This tool is easier to adopt when dealing with a few decision alternatives.

Cost-Benefit Analysis

A cost-benefit analysis compares the benefits of a decision with its associated costs. It saves businesses the trouble of making decisions without considering underlying expenses. Alternative A may have bigger benefits than alternative B, but when you compare both benefits against their associated costs, alternative B may be better. It offers a holistic approach to decision-making, outlining the ripple effects of all alternatives. 

Pareto Analysis

Pareto analysis is a business decision making tool for prioritizing the most important aspects of a decision and saving costs. Built on an 80/20 rule, it states that you can achieve 80% of your desired results by doing 20% of its associated work. Similarly, you can solve 80% of a problem by identifying 20% of its causes. Assign a score to each attribute of an alternative and then focus on the ones with the highest scores because they are most significant to the decision. 

Six Thinking Hats

Six thinking hats are a decision-making tool for examining problems from multiple perspectives. The hats which are in different colors represent how to approach a problem based on your position. 

• Blue Hat : The blue hat is the team leader or manager. They coordinate the decision-making process, and it’s their responsibility to understand the requirements of the decision and communicate them to other team members.
• White Hat : The white hat is data-driven and plays a significant role at the beginning of a decision-making session to ensure that valuable information has been gathered and vetted to be factual as incorrect information will produce invalid results. It’s also essential at the end of a decision-making session to evaluate information contributed by other hats. 
• Green Hat : The green hat opens the floor for innovative thinking and contributions. It thinks outside the box and introduces ideas that others may overlook. Other hats may not be comfortable with the green hat’s perspective, but they must be open to it. 
• Yellow Hat : The yellow hat encourages the ideas of the green hat by highlighting their pros. The bearer plays a significant role in ensuring that other team members don’t shut down any good ideas generated by the green hat without proper consideration.
• Red Hat : The red hat identifies the cons of any ideas the team discusses. They play the devil’s advocate by highlighting the reasons why certain opinions may not fly. Their point of view isn’t based on facts but on instincts. 
• Black Hat : The black hat is similar to the red hat; the difference is that they argue with facts. They examine each idea critically, focusing on their loopholes, and then present objective reasons why the loopholes exist. 

The decision-making process in business relies on evidence to prioritize an alternative over others. It’s becoming more complex due to rising external market factors outside organizations’ jurisdictions. Neglecting any significant attribute impacts the validity of your decision and ultimately leads to failure. 

Businesses must incorporate these factors to enhance the impact of their decisions.

Data Collection and Analytics

Collecting and analyzing data for making business decisions eradicates assumptions—people assume things when there’s no relevant information on the ground. The data collected must be analyzed to derive meaning and direction. A data-driven business decision minimizes failure rate to the barest minimum due to insights from avoiding unfavorable conditions.

Connectivity 

A single business decision has a ripple effect across the entire organization. Executives need to consider how an alternative impacts the various areas of their organization. This entails liaising with various parties at different levels in the decision-making process to arrive at an alternative that suits all bodies. 

Contextualization 

Situations requiring business decisions are different. Adopting a one-size-fits-all approach causes incompatibility. An alternative must be contextualized to suit the problem it’s meant to resolve; otherwise, it may have surface-level results. 

Continuity 

Decision-making in business is continuous. Organizations need to be proactive in projecting favorable outcomes by identifying models and tools they can implement when situations arise. This absorbs the confusion from being taken unawares, allowing them to act swiftly. 

The consumer decision-making process explains how an average consumer evaluates a purchasing decision. Understanding this process helps businesses to position themselves well for positive outcomes as consumers engage with them through the buying process. 

The five stages in the consumer decision-making process are:

Recognizing a Need 

Need recognition is a point where a consumer becomes aware that they need a product or service. This awareness usually stems from a lack or deficiency in an area of their life. The consumer is convinced that they truly need an item from the perceived value it will offer them. Need recognition is an internal stimulus for the consumer, but as a business, you can leverage this stage by putting your product or service out there so it’s visible to the consumer once they become aware of the need. 

Searching for Information

Having acknowledged that they need a product or service, the consumer seeks more information about it. They start by recalling experiences they may have had with the item and ask themselves if those experiences were good or bad. If they have no previous encounter with the item or aren’t satisfied with it, they search for information about it online. Customer reviews, blog posts, and contributions on online forums are some of the sources of their information. 

Businesses can benefit from the information search in the consumer decision making process by creating brand awareness. This includes creating and publishing content about their products and services on their websites and other targeted platforms. Create avenues for customers to write reviews about your products and showcase the positive ones in your content. 

Evaluating Alternatives 

A consumer in this stage of the decision-making process knows what they want in a product. To get the best product on the market, they evaluate multiple alternatives, comparing each against established criteria. Factors the consumer considers in their evaluation include price, benefits, quality, and more. 

The information organizations have out there about their products or services is what the consumer uses in evaluating their alternatives. Ensure that you provide adequate information about your offering in your content to convince a prospective buyer that you are the best alternative. Create a frequently asked questions (FAQs) page on your website addressing possible questions customers may ask. 

Making a Purchase Decision 

Having examined all the alternatives based on the information available to them, the consumer makes a buying decision. An average consumer seeks the best alternative—it’s your responsibility to make your product or service appear its best to them. If you are intentional about gaining their favor from the first stage of the consumer buying decision-making process, your chances of success are higher in this stage. 

Post-Purchase Evaluation 

The last phase of a consumer decision-making process could facilitate future patronage and it could also be the last time they patronize your business. A customer who is satisfied with your product or service may leave positive reviews about it online which would encourage others to patronize you; they may even patronize you again. The reverse is the case if the customer is unsatisfied with your offering—they may leave negative reviews and never patronize you again.

As a business, you must ensure that claims about your products or services are true. This requires putting in the work to create products and services that offer significant value to users. A handful of reviews from unsatisfied customers could have damaging impacts on your brand’s reputation. 

Healthcare providers are mandated to make decisions regarding patients’ well-being every day, and these decisions have either good or bad consequences. Most healthcare decisions are either directly or indirectly about life and death. Medical practitioners must approach such decisions with caution even when they have limited time. 

The dynamics of healthcare decision-making vary in various locations, but practitioners share a common goal of giving patients the best outcomes at the time and advancing the healthcare system.

Critical evaluation is non-negotiable in healthcare decision-making because the slightest errors could lead to the immediate death of patients and the death of more people in the long run due to poor healthcare policies. 

The decision tree is common among medical practitioners, especially in urgent matters of life and death. They must decide on their next steps in a limited time while ensuring they make the best decision. The branches of the tree represent the alternatives and the leaves represent the outcomes of each alternative. They develop the leaves of the branches to see the benefits, limitations, and results of all alternatives on the tree. They compare all factors to identify an alternative that has the best outcome with the least risks. 

Decision-making in project management seeks the most efficient means for achieving maximum results. Some projects are more complex than others, making it ineffective to approach all projects in the same manner. Establishing standards for measuring time, budget, and other factors enables you to give each project the attention it deserves in the decision-making process.

In addition to the decision-making models already discussed, project managers can adopt other techniques like brainstorming and elimination by aspects. 

Brainstorming allows team members to generate ideas and deliberate on them collectively. Everyone understands the goal at hand and tasks themselves to develop a means to achieve it. Brainstorming encourages innovative thinking. All ideas are welcome—it’s the responsibility of the group to make meaning out of them. By the end of the brainstorming session, the team will have a consensus on the best alternative for the decision.

Elimination by aspects is a process of outlining all the alternatives in a decision and evaluating them based on established criteria. You weigh the options on the criteria scale and remove the lightest ones until you arrive at the heaviest alternative. It’s a good decision making technique in project management for saving time and resources. 

Making too many decisions causes fatigue. Our brains try to protect us by erecting mental barriers called biases to prevent us from evaluating decisions thoroughly and prompt us to take the easiest routes to choosing an alternative. 

Decision-making biases can be good or bad, depending on the situation. One of the qualities of a good leader is being able to recognize how they impact the decision-making process. 

Confirmation Bias

Confirmation bias is subconsciously leaning toward ideas and alternatives that align with your preconceived beliefs when making decisions. Your brain seeks and develops familiar information, neglecting information that counters what it already knows or feels comfortable with. This could make you ignore important factors in your decisions. 

Self-Serving Bias

Self-serving bias is the influence of personal interests in decision-making. People gravitate toward alternatives that boost their self-esteem or flatter them without even realizing it. The outcome of such a decision may not be entirely bad because they score some points for the decision makers, but it isn’t in the best interest of the organization. 

Halo Effect

The halo effect is about building an impression from a single aspect of a subject and viewing all other aspects of it based on that impression. It’s the presumption that the whole of a thing is good because an aspect of it is good, and vice versa. This bias emphasizes the first impression people have about an alternative. It can be misleading in decision-making because other aspects of the chosen alternative may be bad. 

Herd Mentality

The herd mentality is a decision-making bias where people follow the crowd without evaluating a situation to see if it’s good for them. There’s the assumption that the most popular alternative is the best just because the majority of people say so. This bias is common in business environments where people aren’t encouraged to air their personal views. Business leaders must kick against having a consensus too early in the decision-making process and be intentional about giving everyone a chance to share their opinions. One way to resist the halo effect is to remember that people naturally take the easiest route instead of putting in the work to get better results. 

Sunk-Cost Fallacy

The sunk-cost fallacy bias is the resilience to continue with an endeavor because of the resources invested into it, even when the current costs are more than the benefits. For instance, you started a project with what seemed like a great plan and invested time, money, and other resources in it. A considerable time has passed, and you aren’t seeing any significant results. Rising developments show that your plan isn’t so effective, but you insist on continuing with it because you don’t want to lose your investments. 

Business climate changes, making great ideas inefficient. You need to be in tune with reality to recognize when to make a U-turn despite your investments, otherwise you will incur more losses.

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In This Article Expand or collapse the "in this article" section Problem Solving and Decision Making

Introduction.

• General Approaches to Problem Solving
• Representational Accounts
• Problem Space and Search
• Working Memory and Problem Solving
• Domain-Specific Problem Solving
• The Rational Approach
• Prospect Theory
• Dual-Process Theory
• Cognitive Heuristics and Biases

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Problem Solving and Decision Making by Emily G. Nielsen , John Paul Minda LAST REVIEWED: 26 June 2019 LAST MODIFIED: 26 June 2019 DOI: 10.1093/obo/9780199828340-0246

Problem solving and decision making are both examples of complex, higher-order thinking. Both involve the assessment of the environment, the involvement of working memory or short-term memory, reliance on long term memory, effects of knowledge, and the application of heuristics to complete a behavior. A problem can be defined as an impasse or gap between a current state and a desired goal state. Problem solving is the set of cognitive operations that a person engages in to change the current state, to go beyond the impasse, and achieve a desired outcome. Problem solving involves the mental representation of the problem state and the manipulation of this representation in order to move closer to the goal. Problems can vary in complexity, abstraction, and how well defined (or not) the initial state and the goal state are. Research has generally approached problem solving by examining the behaviors and cognitive processes involved, and some work has examined problem solving using computational processes as well. Decision making is the process of selecting and choosing one action or behavior out of several alternatives. Like problem solving, decision making involves the coordination of memories and executive resources. Research on decision making has paid particular attention to the cognitive biases that account for suboptimal decisions and decisions that deviate from rationality. The current bibliography first outlines some general resources on the psychology of problem solving and decision making before examining each of these topics in detail. Specifically, this review covers cognitive, neuroscientific, and computational approaches to problem solving, as well as decision making models and cognitive heuristics and biases.

General Overviews

Current research in the area of problem solving and decision making is published in both general and specialized scientific journals. Theoretical and scholarly work is often summarized and developed in full-length books and chapter. These may focus on the subfields of problem solving and decision making or the larger field of thinking and higher-order cognition.

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Problem Solving and Decision Making - Two Essential Skills of a Good Leader

Problem solving and decision making are two fascinating skillsets. We call them out as two separate skills – and they are – but they also make use of the same core attributes.

They feed on a need to communicate well, both through questioning and listening, and be patient and not rushing both processes through. Thus, the greatest challenge any leader faces when it comes to solving problems and decision making is when the pressure of time comes into play. But as Robert Schuller highlights in his quote, allowing problem-solving to become the decision means you’ll never break free from the problem.

“Never bring the problem-solving stage into the decision-making stage. Otherwise, you surrender yourself to the problem rather than the solution.”—Robert H. Schuller

So how does a leader avoid this trap? How do they ensure the problem solving doesn’t become the be-all and end-all?

The 7 steps of Effective Problem Solving and Decision Making

A vital hurdle every leader must overcome is to avoid the impulsive urge to make quick decisions . Often when confronted with a problem, leaders or managers fall back in past behaviours. Urgency creates pressure to act quickly as a result, the problem still exists, just side-lined until it rears its ugly head again.

Good problem solving opens opportunity. A notable example of this is the first principles thinking executed by the likes of Elon Musk and others. Understanding the fundamentals blocks of a process and the problem it’s creating can lead to not just the problem but accelerate beyond it.

So, to avoid the trap, and use problem solving and decision making effectively , you should embody yourself with the following seven steps.

1.      What is the problem?

Often, especially in time-critical situations, people don’t define the problem. Some label themselves as fire-fighters, just content with dowsing out the flames. It is a reactionary behaviour and one commonplace with under-trained leaders. As great as some fire-fighters are, they can only put out so many fires at one time, often becoming a little industry.

The better approach is to define the problem, and this means asking the following questions:

• What is happening? ( What makes you think there is a problem?)
• Where is it taking place?
• How is it happening?
• When is it happening?
• Why is it happening?
• With whom is it happening? (This isn’t a blame game…all you want to do is isolate the problem to a granular level.)
• Define what you understand to be the problem in writing by using as few sentences as possible. (Look at the answers to your what, where, why, when, and how questions.)

2.      What are the potential causes?

Having defined the problem it is now time to find out what might be causing the problem. Your leadership skills: your communication skills need to be strong, as you look to gather input from your team and those involved in the problem.

Key points:

• Talk to those involved individually. Groupthink is a common cause of blindness to the problem, especially if there is blame culture within the business.
• Document what you’ve heard and what you think is the root cause is.
• Be inquisitive. You don’t know what you don’t know, so get the input of others and open yourself up to the feedback you’ll need to solve this problem.

3.      What other ways can you overcome the problem?

 Sometimes, getting to the root cause can take time. Of course, you can’t ignore it, but it is important to produce a plan to temporarily fix the problem. In business, a problem will be costing the business money, whether it be sales or profit. So, a temporary fix allows the business to move forward, providing it neutralises the downside of the original problem.

4.      How will you resolve the problem?

At this stage, you still don’t know what the actual problem is. All you have is a definition of the problem which is a diagnosis of the issue. You will have the team’s input, as well as your opinions as to what the next steps should be.

If you don’t, then at this stage you should think about reassessing the problem. One way forward could be to become more granular and adopt a first-principles approach.

• Break the problem down into its core parts
• What forms the foundational blocks of the system in operation?
• Ask powerful questions to get to the truth of the problem
• How do the parts fit together?
• What was the original purpose of the system working in this way?
• Name and separate your assumptions from the facts
• Remind yourself of the goal and create a new solution

Solve hard problems with inversion

Another way is to invert the problem using the following technique:

1. Understand the problem

Every solution starts with developing a clear understanding of what the problem is. In this instance, some clarity of the issue is vital.

2. Ask the opposite question

Convention wisdom means we see the world logically. But what if you turned the logical outcome on its head. Asking the opposite questions brings an unfamiliar perspective.

3. Answer the opposite question

It seems a simple logic, but you can’t just ask the opposite question and not answer it. You must think through the dynamics that come from asking the question. You're looking for alternative viewpoints and thoughts you've not had before.

4. Join your answers up with your original problem

This is where solutions are born. You’re taking your conventional wisdom and aligning it with the opposite perspective. So often the blockers seen in the original problem become part of the solution.

5.      Define a plan to either fix the problem permanently or temporarily

You now know the problem. You understand the fix, and you are a position to assess the risks involved.

Assessing the risks means considering the worst-case scenarios and ensuring you avoid them. Your plan should take into the following points:

• Is there any downtime to implementing the solution? If so, how long, and how much will it cost? Do you have backup systems in place to minimise the impact?
• If the risk is too great, consider a temporary fix which keeps current operations in place and gives you time to further prepare for a permanent fix.
• Document the plan and share it with all the relevant stakeholders. Communication is key.

Here we see the two skills of problem solving and decision making coming together. The two skills are vital to managing business risks as well as solving the problem.

6.      Monitor and measure the plan

Having evolved through the five steps to this stage, you mustn’t take your eye off the ball as it were.

• Define timelines and assess progress
• Report to the stakeholders, ensuring everyone is aware of progress or any delays.
• If the plan doesn’t deliver, ask why? Learn from failure.

7.      Have you fixed the problem?

Don’t forget the problem you started with. Have you fixed it? You might find it wasn’t a problem at all. You will have learnt a lot about the part of the business where the problem occurred, and improvements will have taken place.

Use the opportunity to assess what worked, what didn’t, and what would have helped. These are three good questions to give you some perspective on the process you’ve undertaken.

Problem solving and decision making in unison

Throughout the process of problem solving, you’re making decisions. Right from the beginning when the problem first becomes clear, you have a choice to either react – firefight or to investigate. This progresses as move onto risk assessing the problem and then defining the solutions to overcome the issue.

Throughout the process, the critical element is to make decisions with the correct information to hand. Finding out the facts, as well as defeating your assumptions are all part of the process of making the right decision.

Problem solving and decision making – a process 

Problem solving isn’t easy. It becomes even more challenging when you have decisions to make. The seven steps I’ve outlined will give you the ability to investigate and diagnose the problem correctly.

• What is the problem?
• What are the potential causes?
• What other ways can you overcome the problem?
• How will you resolve the problem?
• Define a plan to either fix the problem permanently or temporarily.
• Monitor and measure the plan.
• Have you fixed the problem?

Of course, this logical step by step process might not enable you to diagnose the issue at hand. Some problems can be extremely hard, and an alternative approach might help. In this instance, first principles thinking or using the power of inversion are excellent ways to dig into hard problems. Problem solving and decision making are two skills every good leader needs. Using them together is an effective way to work.

Become a Wiser Decision-Maker in Just 5 Minutes per Week.

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Decision Making: a Theoretical Review

• Regular Article
• Published: 15 November 2021
• Volume 56 , pages 609–629, ( 2022 )

Cite this article

• Matteo Morelli 1 ,
• Maria Casagrande   ORCID: orcid.org/0000-0002-4430-3367 2 &
• Giuseppe Forte 1 , 3  

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Decision-making is a crucial skill that has a central role in everyday life and is necessary for adaptation to the environment and autonomy. It is the ability to choose between two or more options, and it has been studied through several theoretical approaches and by different disciplines. In this overview article, we contend a theoretical review regarding most theorizing and research on decision-making. Specifically, we focused on different levels of analyses, including different theoretical approaches and neuropsychological aspects. Moreover, common methodological measures adopted to study decision-making were reported. This theoretical review emphasizes multiple levels of analysis and aims to summarize evidence regarding this fundamental human process. Although several aspects of the field are reported, more features of decision-making process remain uncertain and need to be clarified. Further experimental studies are necessary for understanding this process better and for integrating and refining the existing theories.

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Morelli, M., Casagrande, M. & Forte, G. Decision Making: a Theoretical Review. Integr. psych. behav. 56 , 609–629 (2022). https://doi.org/10.1007/s12124-021-09669-x

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Critical Thinking and Decision-Making  - What is Critical Thinking?

Critical thinking and decision-making  -, what is critical thinking, critical thinking and decision-making what is critical thinking.

Critical Thinking and Decision-Making: What is Critical Thinking?

Lesson 1: what is critical thinking, what is critical thinking.

Critical thinking is a term that gets thrown around a lot. You've probably heard it used often throughout the years whether it was in school, at work, or in everyday conversation. But when you stop to think about it, what exactly is critical thinking and how do you do it ?

Watch the video below to learn more about critical thinking.

Simply put, critical thinking is the act of deliberately analyzing information so that you can make better judgements and decisions . It involves using things like logic, reasoning, and creativity, to draw conclusions and generally understand things better.

This may sound like a pretty broad definition, and that's because critical thinking is a broad skill that can be applied to so many different situations. You can use it to prepare for a job interview, manage your time better, make decisions about purchasing things, and so much more.

The process

As humans, we are constantly thinking . It's something we can't turn off. But not all of it is critical thinking. No one thinks critically 100% of the time... that would be pretty exhausting! Instead, it's an intentional process , something that we consciously use when we're presented with difficult problems or important decisions.

Improving your critical thinking

In order to become a better critical thinker, it's important to ask questions when you're presented with a problem or decision, before jumping to any conclusions. You can start with simple ones like What do I currently know? and How do I know this? These can help to give you a better idea of what you're working with and, in some cases, simplify more complex issues.  

Real-world applications

Let's take a look at how we can use critical thinking to evaluate online information . Say a friend of yours posts a news article on social media and you're drawn to its headline. If you were to use your everyday automatic thinking, you might accept it as fact and move on. But if you were thinking critically, you would first analyze the available information and ask some questions :

• What's the source of this article?
• Is the headline potentially misleading?
• What are my friend's general beliefs?
• Do their beliefs inform why they might have shared this?

After analyzing all of this information, you can draw a conclusion about whether or not you think the article is trustworthy.

Critical thinking has a wide range of real-world applications . It can help you to make better decisions, become more hireable, and generally better understand the world around you.

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Master the 7-Step Problem-Solving Process for Better Decision-Making

Discover the powerful 7-Step Problem-Solving Process to make better decisions and achieve better outcomes. Master the art of problem-solving in this comprehensive guide. Download the Free PowerPoint and PDF Template.

StrategyPunk

Introduction

Mastering the art of problem-solving is crucial for making better decisions. Whether you're a student, a business owner, or an employee, problem-solving skills can help you tackle complex issues and find practical solutions. The 7-Step Problem-Solving Process is a proven method that can help you approach problems systematically and efficiently.

The 7-Step Problem-Solving Process involves steps that guide you through the problem-solving process. The first step is to define the problem, followed by disaggregating the problem into smaller, more manageable parts. Next, you prioritize the features and create a work plan to address each. Then, you analyze each piece, synthesize the information, and communicate your findings to others.

By following this process, you can avoid jumping to conclusions, overlooking important details, or making hasty decisions. Instead, you can approach problems with a clear and structured mindset, which can help you make better decisions and achieve better outcomes.

In this article, we'll explore each step of the 7-Step Problem-Solving Process in detail so you can start mastering this valuable skill. At the end of the blog post, you can download the process's free PowerPoint and PDF templates .

Step 1: Define the Problem

The first step in the problem-solving process is to define the problem. This step is crucial because finding a solution is only accessible if the problem is clearly defined. The problem must be specific, measurable, and achievable.

One way to define the problem is to ask the right questions. Questions like "What is the problem?" and "What are the causes of the problem?" can help. Gathering data and information about the issue to assist in the definition process is also essential.

Another critical aspect of defining the problem is identifying the stakeholders. Who is affected by it? Who has a stake in finding a solution? Identifying the stakeholders can help ensure that the problem is defined in a way that considers the needs and concerns of all those affected.

Once the problem is defined, it is essential to communicate the definition to all stakeholders. This helps to ensure that everyone is on the same page and that there is a shared understanding of the problem.

Step 2: Disaggregate

After defining the problem, the next step in the 7-step problem-solving process is to disaggregate the problem into smaller, more manageable parts. Disaggregation helps break down the problem into smaller pieces that can be analyzed individually. This step is crucial in understanding the root cause of the problem and identifying the most effective solutions.

Disaggregation can be achieved by breaking down the problem into sub-problems, identifying the contributing factors, and analyzing the relationships between these factors. This step helps identify the most critical factors that must be addressed to solve the problem.

A tree or fishbone diagram is one effective way to disaggregate a problem. These diagrams help identify the different factors contributing to the problem and how they are related. Another way is to use a table to list the other factors contributing to the situation and their corresponding impact on the issue.

Disaggregation helps in breaking down complex problems into smaller, more manageable parts. It helps understand the relationships between different factors contributing to the problem and identify the most critical factors that must be addressed. By disaggregating the problem, decision-makers can focus on the most vital areas, leading to more effective solutions.

Step 3: Prioritize

After defining the problem and disaggregating it into smaller parts, the next step in the 7-step problem-solving process is prioritizing the issues that need addressing. Prioritizing helps to focus on the most pressing issues and allocate resources more effectively.

There are several ways to prioritize issues, including:

• Urgency: Prioritize issues based on their urgency. Problems that require immediate attention should be addressed first.
• Impact: Prioritize issues based on their impact on the organization or stakeholders. Problems with a high impact should be given priority.
• Resources: Prioritize issues based on the resources required to address them. Problems that require fewer resources should be dealt with first.

It is important to involve stakeholders in the prioritization process, considering their concerns and needs. This can be done through surveys, focus groups, or other forms of engagement.

Once the issues have been prioritized, developing a plan of action to address them is essential. This involves identifying the resources required, setting timelines, and assigning responsibilities.

Prioritizing issues is a critical step in problem-solving. By focusing on the most pressing problems, organizations can allocate resources more effectively and make better decisions.

Step 4: Workplan

After defining the problem, disaggregating, and prioritizing the issues, the next step in the 7-step problem-solving process is to develop a work plan. This step involves creating a roadmap that outlines the steps needed to solve the problem.

The work plan should include a list of tasks, deadlines, and responsibilities for each team member involved in the problem-solving process. Assigning tasks based on each team member's strengths and expertise ensures the work is completed efficiently and effectively.

Creating a work plan can help keep the team on track and ensure everyone is working towards the same goal. It can also help to identify potential roadblocks or challenges that may arise during the problem-solving process and develop contingency plans to address them.

Several tools and techniques can be used to develop a work plan, including Gantt charts, flowcharts, and mind maps. These tools can help to visualize the steps needed to solve the problem and identify dependencies between tasks.

Developing a work plan is a critical step in the problem-solving process. It provides a clear roadmap for solving the problem and ensures everyone involved is aligned and working towards the same goal.

Step 5: Analysis

Once the problem has been defined and disaggregated, the next step is to analyze the information gathered. This step involves examining the data, identifying patterns, and determining the root cause of the problem.

Several methods can be used during the analysis phase, including:

• Root cause analysis
• Pareto analysis
• SWOT analysis

Root cause analysis is a popular method used to identify the underlying cause of a problem. This method involves asking a series of "why" questions to get to the root cause of the issue.

Pareto analysis is another method that can be used during the analysis phase. This method involves identifying the 20% of causes responsible for 80% of the problems. By focusing on these critical causes, organizations can make significant improvements.

Finally, SWOT analysis is a valuable tool for analyzing the internal and external factors that may impact the problem. This method involves identifying the strengths, weaknesses, opportunities, and threats related to the issue.

Overall, the analysis phase is critical for identifying the root cause of the problem and developing practical solutions. By using a combination of methods, organizations can gain a deeper understanding of the issue and make informed decisions.

Step 6: Synthesize

Once the analysis phase is complete, it is time to synthesize the information gathered to arrive at a solution. During this step, the focus is on identifying the most viable solution that addresses the problem. This involves examining and combining the analysis results for a clear and concise conclusion.

One way to synthesize the information is to use a decision matrix. This involves creating a table that lists the potential solutions and the essential criteria for making a decision. Each answer is then rated against each standard, and the scores are tallied to arrive at a final decision.

Another approach to synthesizing the information is to use a mind map. This involves creating a visual representation of the problem and the potential solutions. The mind map can identify the relationships between the different pieces of information and help prioritize the solutions.

During the synthesis phase, it is vital to remain open-minded and consider all potential solutions. Involving all stakeholders in the decision-making process is essential to ensure everyone's perspectives are considered.

Step 7: Communicate

After synthesizing the information, the next step is communicating the findings to the relevant stakeholders. This is a crucial step because it helps to ensure that everyone is on the same page and that the decision-making process is transparent.

One effective way to communicate the findings is through a well-organized report. The report should include the problem statement, the analysis, the synthesis, and the recommended solution. It should be clear, concise, and easy to understand.

In addition to the report, a presentation explaining the findings is essential. The presentation should be tailored to the audience and highlight the report's key points. Visual aids such as tables, graphs, and charts can make the presentation more engaging.

During the presentation, it is essential to be open to feedback and questions from the audience. This helps ensure everyone agrees with the recommended solution and addresses concerns or objections.

Effective communication is vital to ensuring the decision-making process is successful. Stakeholders can make informed decisions and work towards a common goal by communicating the findings clearly and concisely.

The 7-step problem-solving process is a powerful tool for helping individuals and organizations make better decisions. By following these steps, individuals can identify the root cause of a problem, prioritize potential solutions, and develop a clear plan of action. This process can be applied to various scenarios, from personal challenges to complex business problems.

Through disaggregation, individuals can break down complex problems into smaller, more manageable parts. By prioritizing potential solutions, individuals can focus their efforts on the most impactful actions. The work step allows individuals to develop a clear action plan, while the analysis step provides a framework for evaluating possible solutions.

The synthesis step combines all the information gathered to develop a comprehensive solution. Finally, the communication step allows individuals to share their answers with others and gather feedback.

By mastering the 7-step problem-solving process, individuals can become more effective decision-makers and problem-solvers. This process can help individuals and organizations save time and resources while improving outcomes. With practice, individuals can develop the skills to apply this process to a wide range of scenarios and make better decisions in all areas of life.

7-Step Problem-Solving Process PPT Template

Free powerpoint and pdf template, executive summary: the 7-step problem-solving process.

The 7-Step Problem-Solving Process is a robust and systematic method to help individuals and organizations make better decisions by tackling complex issues and finding practical solutions. This process comprises defining the problem, disaggregating it into smaller parts, prioritizing the issues, creating a work plan, analyzing the data, synthesizing the information, and communicating the findings.

By following these steps, individuals can identify the root cause of a problem, break it down into manageable components, and prioritize the most impactful actions. The work plan, analysis, and synthesis steps provide a framework for developing comprehensive solutions, while the communication step ensures transparency and stakeholder engagement.

Mastering this process can improve decision-making and problem-solving capabilities, save time and resources, and improve outcomes in personal and professional contexts.

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Lidl SWOT Analysis: Free PPT Template and In-Depth Insights

Discover Lidl's strengths, weaknesses, opportunities, and threats with our free PowerPoint template. This in-depth SWOT analysis provides valuable insights to help you understand Lidl's market position and strategic direction.

Global Bites: PESTLE Insights into Nestlé (Free PPT)

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Navigating the Terrain: A PESTLE Analysis of Lululemon (Free PowerPoint)

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3 Ways to Improve Your Decision Making

• Walter Frick

First, be less certain — about everything.

To get better at making decisions, you have to improve your ability to make predictions (how different choices change the likelihood of different outcomes) and your judgment (how desirable each of those outcomes is). While there are countless ways to work on these two skills, there are three simple rules that can help the most. First, be less certain. We’re all more confident about each step of the decision-making process than we ought to be. What else would you think about if you were less sure that A would cause B, or that B is preferable to C? Second, always ask yourself ask “How often does that typically happen?” If you think outcome B is preferable to outcome C, you might ask: How often has that historically been the case? Third, brush up on your understanding of probability. Research has shown that even basic training in probability makes people better forecasters and helps them avoid certain cognitive biases.

To make a good decision, you need to have a sense of two things: how different choices change the likelihood of different outcomes and how desirable each of those outcomes is. In other words, as Ajay Agrawal, Joshua Gans, and Avi Goldfarb have written , decision making requires both prediction and judgment.

• Walter Frick is a contributing editor at Harvard Business Review , where he was formerly a senior editor and deputy editor of HBR.org. He is the founder of Nonrival , a newsletter where readers make crowdsourced predictions about economics and business. He has been an executive editor at Quartz as well as a Knight Visiting Fellow at Harvard’s Nieman Foundation for Journalism and an Assembly Fellow at Harvard’s Berkman Klein Center for Internet & Society. He has also written for The Atlantic , MIT Technology Review , The Boston Globe , and the BBC, among other publications.

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• Critical Thinking

Decision-making and Problem-solving

Appreciate the complexities involved in decision-making & problem solving.

Develop evidence to support views

Analyze situations carefully

Discuss subjects in an organized way

Predict the consequences of actions

Weigh alternatives

Generate and organize ideas

Form and apply concepts

Design systematic plans of action

A 5-Step Problem-Solving Strategy

Specify the problem – a first step to solving a problem is to identify it as specifically as possible.  It involves evaluating the present state and determining how it differs from the goal state.

Analyze the problem – analyzing the problem involves learning as much as you can about it.  It may be necessary to look beyond the obvious, surface situation, to stretch your imagination and reach for more creative options.

seek other perspectives

be flexible in your analysis

consider various strands of impact

brainstorm about all possibilities and implications

research problems for which you lack complete information. Get help.

Formulate possible solutions – identify a wide range of possible solutions.

try to think of all possible solutions

be creative

consider similar problems and how you have solved them

Evaluate possible solutions – weigh the advantages and disadvantages of each solution.  Think through each solution and consider how, when, and where you could accomplish each.  Consider both immediate and long-term results.  Mapping your solutions can be helpful at this stage.

Choose a solution – consider 3 factors:

compatibility with your priorities

amount of risk

practicality

Keys to Problem Solving

Think aloud – problem solving is a cognitive, mental process.  Thinking aloud or talking yourself through the steps of problem solving is useful.  Hearing yourself think can facilitate the process.

Allow time for ideas to "gel" or consolidate.  If time permits, give yourself time for solutions to develop.  Distance from a problem can allow you to clear your mind and get a new perspective.

Talk about the problem – describing the problem to someone else and talking about it can often make a problem become more clear and defined so that a new solution will surface.

Decision Making Strategies

Decision making is a process of identifying and evaluating choices.  We make numerous decisions every day and our decisions may range from routine, every-day types of decisions to those decisions which will have far reaching impacts.  The types of decisions we make are routine, impulsive, and reasoned.  Deciding what to eat for breakfast is a routine decision; deciding to do or buy something at the last minute is considered an impulsive decision; and choosing your college major is, hopefully, a reasoned decision.  College coursework often requires you to make the latter, or reasoned decisions.

Decision making has much in common with problem solving.  In problem solving you identify and evaluate solution paths; in decision making you make a similar discovery and evaluation of alternatives.  The crux of decision making, then, is the careful identification and evaluation of alternatives.  As you weigh alternatives, use the following suggestions:

Consider the outcome each is likely to produce, in both the short term and the long term.

Compare alternatives based on how easily you can accomplish each.

Evaluate possible negative side effects each may produce.

Consider the risk involved in each.

Be creative, original; don't eliminate alternatives because you have not heard or used them before.

An important part of decision making is to predict both short-term and long-term outcomes for each alternative.  You may find that while an alternative seems most desirable at the present, it may pose problems or complications over a longer time period.

• Uses of Critical Thinking
• Critically Evaluating the Logic and Validity of Information
• Recognizing Propaganda Techniques and Errors of Faulty Logic
• Developing the Ability to Analyze Historical and Contemporary Information
• Recognize and Value Various Viewpoints
• Appreciating the Complexities Involved in Decision-Making and Problem-Solving
• Being a Responsible Critical Thinker & Collaborating with Others
• Suggestions
• Read the Textbook
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• Reading Rate
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• Organizational Patterns of a Paragraph
• Topics, Main Ideas, and Support
• Inferences and Conclusions
• Interpreting What You Read
• Concentrating and Remembering
• Converting Words into Pictures
• Spelling and the Dictionary
• Eight Essential Spelling Rules
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• Motivation and Goal Setting
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• Memory and Learning Styles
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• The Origin of Words
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14.3 Problem Solving and Decision Making in Groups

Learning objectives.

• Discuss the common components and characteristics of problems.
• Explain the five steps of the group problem-solving process.
• Describe the brainstorming and discussion that should take place before the group makes a decision.
• Compare and contrast the different decision-making techniques.
• Discuss the various influences on decision making.

Although the steps of problem solving and decision making that we will discuss next may seem obvious, we often don’t think to or choose not to use them. Instead, we start working on a problem and later realize we are lost and have to backtrack. I’m sure we’ve all reached a point in a project or task and had the “OK, now what?” moment. I’ve recently taken up some carpentry projects as a functional hobby, and I have developed a great respect for the importance of advanced planning. It’s frustrating to get to a crucial point in building or fixing something only to realize that you have to unscrew a support board that you already screwed in, have to drive back to the hardware store to get something that you didn’t think to get earlier, or have to completely start over. In this section, we will discuss the group problem-solving process, methods of decision making, and influences on these processes.

Group Problem Solving

The problem-solving process involves thoughts, discussions, actions, and decisions that occur from the first consideration of a problematic situation to the goal. The problems that groups face are varied, but some common problems include budgeting funds, raising funds, planning events, addressing customer or citizen complaints, creating or adapting products or services to fit needs, supporting members, and raising awareness about issues or causes.

Problems of all sorts have three common components (Adams & Galanes, 2009):

• An undesirable situation. When conditions are desirable, there isn’t a problem.
• A desired situation. Even though it may only be a vague idea, there is a drive to better the undesirable situation. The vague idea may develop into a more precise goal that can be achieved, although solutions are not yet generated.
• Obstacles between undesirable and desirable situation. These are things that stand in the way between the current situation and the group’s goal of addressing it. This component of a problem requires the most work, and it is the part where decision making occurs. Some examples of obstacles include limited funding, resources, personnel, time, or information. Obstacles can also take the form of people who are working against the group, including people resistant to change or people who disagree.

Discussion of these three elements of a problem helps the group tailor its problem-solving process, as each problem will vary. While these three general elements are present in each problem, the group should also address specific characteristics of the problem. Five common and important characteristics to consider are task difficulty, number of possible solutions, group member interest in problem, group member familiarity with problem, and the need for solution acceptance (Adams & Galanes, 2009).

• Task difficulty. Difficult tasks are also typically more complex. Groups should be prepared to spend time researching and discussing a difficult and complex task in order to develop a shared foundational knowledge. This typically requires individual work outside of the group and frequent group meetings to share information.
• Number of possible solutions. There are usually multiple ways to solve a problem or complete a task, but some problems have more potential solutions than others. Figuring out how to prepare a beach house for an approaching hurricane is fairly complex and difficult, but there are still a limited number of things to do—for example, taping and boarding up windows; turning off water, electricity, and gas; trimming trees; and securing loose outside objects. Other problems may be more creatively based. For example, designing a new restaurant may entail using some standard solutions but could also entail many different types of innovation with layout and design.
• Group member interest in problem. When group members are interested in the problem, they will be more engaged with the problem-solving process and invested in finding a quality solution. Groups with high interest in and knowledge about the problem may want more freedom to develop and implement solutions, while groups with low interest may prefer a leader who provides structure and direction.
• Group familiarity with problem. Some groups encounter a problem regularly, while other problems are more unique or unexpected. A family who has lived in hurricane alley for decades probably has a better idea of how to prepare its house for a hurricane than does a family that just recently moved from the Midwest. Many groups that rely on funding have to revisit a budget every year, and in recent years, groups have had to get more creative with budgets as funding has been cut in nearly every sector. When group members aren’t familiar with a problem, they will need to do background research on what similar groups have done and may also need to bring in outside experts.
• Need for solution acceptance. In this step, groups must consider how many people the decision will affect and how much “buy-in” from others the group needs in order for their solution to be successfully implemented. Some small groups have many stakeholders on whom the success of a solution depends. Other groups are answerable only to themselves. When a small group is planning on building a new park in a crowded neighborhood or implementing a new policy in a large business, it can be very difficult to develop solutions that will be accepted by all. In such cases, groups will want to poll those who will be affected by the solution and may want to do a pilot implementation to see how people react. Imposing an excellent solution that doesn’t have buy-in from stakeholders can still lead to failure.

Group problem solving can be a confusing puzzle unless it is approached systematically.

Muness Castle – Problem Solving – CC BY-SA 2.0.

Group Problem-Solving Process

There are several variations of similar problem-solving models based on US American scholar John Dewey’s reflective thinking process (Bormann & Bormann, 1988). As you read through the steps in the process, think about how you can apply what we learned regarding the general and specific elements of problems. Some of the following steps are straightforward, and they are things we would logically do when faced with a problem. However, taking a deliberate and systematic approach to problem solving has been shown to benefit group functioning and performance. A deliberate approach is especially beneficial for groups that do not have an established history of working together and will only be able to meet occasionally. Although a group should attend to each step of the process, group leaders or other group members who facilitate problem solving should be cautious not to dogmatically follow each element of the process or force a group along. Such a lack of flexibility could limit group member input and negatively affect the group’s cohesion and climate.

Step 1: Define the Problem

Define the problem by considering the three elements shared by every problem: the current undesirable situation, the goal or more desirable situation, and obstacles in the way (Adams & Galanes, 2009). At this stage, group members share what they know about the current situation, without proposing solutions or evaluating the information. Here are some good questions to ask during this stage: What is the current difficulty? How did we come to know that the difficulty exists? Who/what is involved? Why is it meaningful/urgent/important? What have the effects been so far? What, if any, elements of the difficulty require clarification? At the end of this stage, the group should be able to compose a single sentence that summarizes the problem called a problem statement . Avoid wording in the problem statement or question that hints at potential solutions. A small group formed to investigate ethical violations of city officials could use the following problem statement: “Our state does not currently have a mechanism for citizens to report suspected ethical violations by city officials.”

Step 2: Analyze the Problem

During this step a group should analyze the problem and the group’s relationship to the problem. Whereas the first step involved exploring the “what” related to the problem, this step focuses on the “why.” At this stage, group members can discuss the potential causes of the difficulty. Group members may also want to begin setting out an agenda or timeline for the group’s problem-solving process, looking forward to the other steps. To fully analyze the problem, the group can discuss the five common problem variables discussed before. Here are two examples of questions that the group formed to address ethics violations might ask: Why doesn’t our city have an ethics reporting mechanism? Do cities of similar size have such a mechanism? Once the problem has been analyzed, the group can pose a problem question that will guide the group as it generates possible solutions. “How can citizens report suspected ethical violations of city officials and how will such reports be processed and addressed?” As you can see, the problem question is more complex than the problem statement, since the group has moved on to more in-depth discussion of the problem during step 2.

Step 3: Generate Possible Solutions

During this step, group members generate possible solutions to the problem. Again, solutions should not be evaluated at this point, only proposed and clarified. The question should be what could we do to address this problem, not what should we do to address it. It is perfectly OK for a group member to question another person’s idea by asking something like “What do you mean?” or “Could you explain your reasoning more?” Discussions at this stage may reveal a need to return to previous steps to better define or more fully analyze a problem. Since many problems are multifaceted, it is necessary for group members to generate solutions for each part of the problem separately, making sure to have multiple solutions for each part. Stopping the solution-generating process prematurely can lead to groupthink. For the problem question previously posed, the group would need to generate solutions for all three parts of the problem included in the question. Possible solutions for the first part of the problem (How can citizens report ethical violations?) may include “online reporting system, e-mail, in-person, anonymously, on-the-record,” and so on. Possible solutions for the second part of the problem (How will reports be processed?) may include “daily by a newly appointed ethics officer, weekly by a nonpartisan nongovernment employee,” and so on. Possible solutions for the third part of the problem (How will reports be addressed?) may include “by a newly appointed ethics commission, by the accused’s supervisor, by the city manager,” and so on.

Step 4: Evaluate Solutions

During this step, solutions can be critically evaluated based on their credibility, completeness, and worth. Once the potential solutions have been narrowed based on more obvious differences in relevance and/or merit, the group should analyze each solution based on its potential effects—especially negative effects. Groups that are required to report the rationale for their decision or whose decisions may be subject to public scrutiny would be wise to make a set list of criteria for evaluating each solution. Additionally, solutions can be evaluated based on how well they fit with the group’s charge and the abilities of the group. To do this, group members may ask, “Does this solution live up to the original purpose or mission of the group?” and “Can the solution actually be implemented with our current resources and connections?” and “How will this solution be supported, funded, enforced, and assessed?” Secondary tensions and substantive conflict, two concepts discussed earlier, emerge during this step of problem solving, and group members will need to employ effective critical thinking and listening skills.

Decision making is part of the larger process of problem solving and it plays a prominent role in this step. While there are several fairly similar models for problem solving, there are many varied decision-making techniques that groups can use. For example, to narrow the list of proposed solutions, group members may decide by majority vote, by weighing the pros and cons, or by discussing them until a consensus is reached. There are also more complex decision-making models like the “six hats method,” which we will discuss later. Once the final decision is reached, the group leader or facilitator should confirm that the group is in agreement. It may be beneficial to let the group break for a while or even to delay the final decision until a later meeting to allow people time to evaluate it outside of the group context.

Step 5: Implement and Assess the Solution

Implementing the solution requires some advanced planning, and it should not be rushed unless the group is operating under strict time restraints or delay may lead to some kind of harm. Although some solutions can be implemented immediately, others may take days, months, or years. As was noted earlier, it may be beneficial for groups to poll those who will be affected by the solution as to their opinion of it or even to do a pilot test to observe the effectiveness of the solution and how people react to it. Before implementation, groups should also determine how and when they would assess the effectiveness of the solution by asking, “How will we know if the solution is working or not?” Since solution assessment will vary based on whether or not the group is disbanded, groups should also consider the following questions: If the group disbands after implementation, who will be responsible for assessing the solution? If the solution fails, will the same group reconvene or will a new group be formed?

Once a solution has been reached and the group has the “green light” to implement it, it should proceed deliberately and cautiously, making sure to consider possible consequences and address them as needed.

Jocko Benoit – Prodigal Light – CC BY-NC-ND 2.0.

Certain elements of the solution may need to be delegated out to various people inside and outside the group. Group members may also be assigned to implement a particular part of the solution based on their role in the decision making or because it connects to their area of expertise. Likewise, group members may be tasked with publicizing the solution or “selling” it to a particular group of stakeholders. Last, the group should consider its future. In some cases, the group will get to decide if it will stay together and continue working on other tasks or if it will disband. In other cases, outside forces determine the group’s fate.

“Getting Competent”

Problem Solving and Group Presentations

Giving a group presentation requires that individual group members and the group as a whole solve many problems and make many decisions. Although having more people involved in a presentation increases logistical difficulties and has the potential to create more conflict, a well-prepared and well-delivered group presentation can be more engaging and effective than a typical presentation. The main problems facing a group giving a presentation are (1) dividing responsibilities, (2) coordinating schedules and time management, and (3) working out the logistics of the presentation delivery.

In terms of dividing responsibilities, assigning individual work at the first meeting and then trying to fit it all together before the presentation (which is what many college students do when faced with a group project) is not the recommended method. Integrating content and visual aids created by several different people into a seamless final product takes time and effort, and the person “stuck” with this job at the end usually ends up developing some resentment toward his or her group members. While it’s OK for group members to do work independently outside of group meetings, spend time working together to help set up some standards for content and formatting expectations that will help make later integration of work easier. Taking the time to complete one part of the presentation together can help set those standards for later individual work. Discuss the roles that various group members will play openly so there isn’t role confusion. There could be one point person for keeping track of the group’s progress and schedule, one point person for communication, one point person for content integration, one point person for visual aids, and so on. Each person shouldn’t do all that work on his or her own but help focus the group’s attention on his or her specific area during group meetings (Stanton, 2009).

Scheduling group meetings is one of the most challenging problems groups face, given people’s busy lives. From the beginning, it should be clearly communicated that the group needs to spend considerable time in face-to-face meetings, and group members should know that they may have to make an occasional sacrifice to attend. Especially important is the commitment to scheduling time to rehearse the presentation. Consider creating a contract of group guidelines that includes expectations for meeting attendance to increase group members’ commitment.

Group presentations require members to navigate many logistics of their presentation. While it may be easier for a group to assign each member to create a five-minute segment and then transition from one person to the next, this is definitely not the most engaging method. Creating a master presentation and then assigning individual speakers creates a more fluid and dynamic presentation and allows everyone to become familiar with the content, which can help if a person doesn’t show up to present and during the question-and-answer section. Once the content of the presentation is complete, figure out introductions, transitions, visual aids, and the use of time and space (Stanton, 2012). In terms of introductions, figure out if one person will introduce all the speakers at the beginning, if speakers will introduce themselves at the beginning, or if introductions will occur as the presentation progresses. In terms of transitions, make sure each person has included in his or her speaking notes when presentation duties switch from one person to the next. Visual aids have the potential to cause hiccups in a group presentation if they aren’t fluidly integrated. Practicing with visual aids and having one person control them may help prevent this. Know how long your presentation is and know how you’re going to use the space. Presenters should know how long the whole presentation should be and how long each of their segments should be so that everyone can share the responsibility of keeping time. Also consider the size and layout of the presentation space. You don’t want presenters huddled in a corner until it’s their turn to speak or trapped behind furniture when their turn comes around.

• Of the three main problems facing group presenters, which do you think is the most challenging and why?
• Why do you think people tasked with a group presentation (especially students) prefer to divide the parts up and have members work on them independently before coming back together and integrating each part? What problems emerge from this method? In what ways might developing a master presentation and then assigning parts to different speakers be better than the more divided method? What are the drawbacks to the master presentation method?

Decision Making in Groups

We all engage in personal decision making daily, and we all know that some decisions are more difficult than others. When we make decisions in groups, we face some challenges that we do not face in our personal decision making, but we also stand to benefit from some advantages of group decision making (Napier & Gershenfeld, 2004). Group decision making can appear fair and democratic but really only be a gesture that covers up the fact that certain group members or the group leader have already decided. Group decision making also takes more time than individual decisions and can be burdensome if some group members do not do their assigned work, divert the group with self-centered or unproductive role behaviors, or miss meetings. Conversely, though, group decisions are often more informed, since all group members develop a shared understanding of a problem through discussion and debate. The shared understanding may also be more complex and deep than what an individual would develop, because the group members are exposed to a variety of viewpoints that can broaden their own perspectives. Group decisions also benefit from synergy, one of the key advantages of group communication that we discussed earlier. Most groups do not use a specific method of decision making, perhaps thinking that they’ll work things out as they go. This can lead to unequal participation, social loafing, premature decisions, prolonged discussion, and a host of other negative consequences. So in this section we will learn some practices that will prepare us for good decision making and some specific techniques we can use to help us reach a final decision.

Brainstorming before Decision Making

Before groups can make a decision, they need to generate possible solutions to their problem. The most commonly used method is brainstorming, although most people don’t follow the recommended steps of brainstorming. As you’ll recall, brainstorming refers to the quick generation of ideas free of evaluation. The originator of the term brainstorming said the following four rules must be followed for the technique to be effective (Osborn, 1959):

• Evaluation of ideas is forbidden.
• Wild and crazy ideas are encouraged.
• Quantity of ideas, not quality, is the goal.
• New combinations of ideas presented are encouraged.

To make brainstorming more of a decision-making method rather than an idea-generating method, group communication scholars have suggested additional steps that precede and follow brainstorming (Cragan & Wright, 1991).

• Do a warm-up brainstorming session. Some people are more apprehensive about publicly communicating their ideas than others are, and a warm-up session can help ease apprehension and prime group members for task-related idea generation. The warm-up can be initiated by anyone in the group and should only go on for a few minutes. To get things started, a person could ask, “If our group formed a band, what would we be called?” or “What other purposes could a mailbox serve?” In the previous examples, the first warm up gets the group’s more abstract creative juices flowing, while the second focuses more on practical and concrete ideas.
• Do the actual brainstorming session. This session shouldn’t last more than thirty minutes and should follow the four rules of brainstorming mentioned previously. To ensure that the fourth rule is realized, the facilitator could encourage people to piggyback off each other’s ideas.
• Eliminate duplicate ideas. After the brainstorming session is over, group members can eliminate (without evaluating) ideas that are the same or very similar.
• Clarify, organize, and evaluate ideas. Before evaluation, see if any ideas need clarification. Then try to theme or group ideas together in some orderly fashion. Since “wild and crazy” ideas are encouraged, some suggestions may need clarification. If it becomes clear that there isn’t really a foundation to an idea and that it is too vague or abstract and can’t be clarified, it may be eliminated. As a caution though, it may be wise to not throw out off-the-wall ideas that are hard to categorize and to instead put them in a miscellaneous or “wild and crazy” category.

Discussion before Decision Making

The nominal group technique guides decision making through a four-step process that includes idea generation and evaluation and seeks to elicit equal contributions from all group members (Delbecq & Ven de Ven, 1971). This method is useful because the procedure involves all group members systematically, which fixes the problem of uneven participation during discussions. Since everyone contributes to the discussion, this method can also help reduce instances of social loafing. To use the nominal group technique, do the following:

• Silently and individually list ideas.
• Create a master list of ideas.
• Clarify ideas as needed.
• Take a secret vote to rank group members’ acceptance of ideas.

During the first step, have group members work quietly, in the same space, to write down every idea they have to address the task or problem they face. This shouldn’t take more than twenty minutes. Whoever is facilitating the discussion should remind group members to use brainstorming techniques, which means they shouldn’t evaluate ideas as they are generated. Ask group members to remain silent once they’ve finished their list so they do not distract others.

During the second step, the facilitator goes around the group in a consistent order asking each person to share one idea at a time. As the idea is shared, the facilitator records it on a master list that everyone can see. Keep track of how many times each idea comes up, as that could be an idea that warrants more discussion. Continue this process until all the ideas have been shared. As a note to facilitators, some group members may begin to edit their list or self-censor when asked to provide one of their ideas. To limit a person’s apprehension with sharing his or her ideas and to ensure that each idea is shared, I have asked group members to exchange lists with someone else so they can share ideas from the list they receive without fear of being personally judged.

During step three, the facilitator should note that group members can now ask for clarification on ideas on the master list. Do not let this discussion stray into evaluation of ideas. To help avoid an unnecessarily long discussion, it may be useful to go from one person to the next to ask which ideas need clarifying and then go to the originator(s) of the idea in question for clarification.

During the fourth step, members use a voting ballot to rank the acceptability of the ideas on the master list. If the list is long, you may ask group members to rank only their top five or so choices. The facilitator then takes up the secret ballots and reviews them in a random order, noting the rankings of each idea. Ideally, the highest ranked idea can then be discussed and decided on. The nominal group technique does not carry a group all the way through to the point of decision; rather, it sets the group up for a roundtable discussion or use of some other method to evaluate the merits of the top ideas.

Specific Decision-Making Techniques

Some decision-making techniques involve determining a course of action based on the level of agreement among the group members. These methods include majority, expert, authority, and consensus rule. Table 14.1 “Pros and Cons of Agreement-Based Decision-Making Techniques” reviews the pros and cons of each of these methods.

Majority rule is a simple method of decision making based on voting. In most cases a majority is considered half plus one.

Becky McCray – Voting – CC BY-NC-ND 2.0.

Majority rule is a commonly used decision-making technique in which a majority (one-half plus one) must agree before a decision is made. A show-of-hands vote, a paper ballot, or an electronic voting system can determine the majority choice. Many decision-making bodies, including the US House of Representatives, Senate, and Supreme Court, use majority rule to make decisions, which shows that it is often associated with democratic decision making, since each person gets one vote and each vote counts equally. Of course, other individuals and mediated messages can influence a person’s vote, but since the voting power is spread out over all group members, it is not easy for one person or party to take control of the decision-making process. In some cases—for example, to override a presidential veto or to amend the constitution—a super majority of two-thirds may be required to make a decision.

Minority rule is a decision-making technique in which a designated authority or expert has final say over a decision and may or may not consider the input of other group members. When a designated expert makes a decision by minority rule, there may be buy-in from others in the group, especially if the members of the group didn’t have relevant knowledge or expertise. When a designated authority makes decisions, buy-in will vary based on group members’ level of respect for the authority. For example, decisions made by an elected authority may be more accepted by those who elected him or her than by those who didn’t. As with majority rule, this technique can be time saving. Unlike majority rule, one person or party can have control over the decision-making process. This type of decision making is more similar to that used by monarchs and dictators. An obvious negative consequence of this method is that the needs or wants of one person can override the needs and wants of the majority. A minority deciding for the majority has led to negative consequences throughout history. The white Afrikaner minority that ruled South Africa for decades instituted apartheid, which was a system of racial segregation that disenfranchised and oppressed the majority population. The quality of the decision and its fairness really depends on the designated expert or authority.

Consensus rule is a decision-making technique in which all members of the group must agree on the same decision. On rare occasions, a decision may be ideal for all group members, which can lead to unanimous agreement without further debate and discussion. Although this can be positive, be cautious that this isn’t a sign of groupthink. More typically, consensus is reached only after lengthy discussion. On the plus side, consensus often leads to high-quality decisions due to the time and effort it takes to get everyone in agreement. Group members are also more likely to be committed to the decision because of their investment in reaching it. On the negative side, the ultimate decision is often one that all group members can live with but not one that’s ideal for all members. Additionally, the process of arriving at consensus also includes conflict, as people debate ideas and negotiate the interpersonal tensions that may result.

Table 14.1 Pros and Cons of Agreement-Based Decision-Making Techniques

“Getting Critical”

Six Hats Method of Decision Making

Edward de Bono developed the Six Hats method of thinking in the late 1980s, and it has since become a regular feature in decision-making training in business and professional contexts (de Bono, 1985). The method’s popularity lies in its ability to help people get out of habitual ways of thinking and to allow group members to play different roles and see a problem or decision from multiple points of view. The basic idea is that each of the six hats represents a different way of thinking, and when we figuratively switch hats, we switch the way we think. The hats and their style of thinking are as follows:

• White hat. Objective—focuses on seeking information such as data and facts and then processes that information in a neutral way.
• Red hat. Emotional—uses intuition, gut reactions, and feelings to judge information and suggestions.
• Black hat. Negative—focuses on potential risks, points out possibilities for failure, and evaluates information cautiously and defensively.
• Yellow hat. Positive—is optimistic about suggestions and future outcomes, gives constructive and positive feedback, points out benefits and advantages.
• Green hat. Creative—tries to generate new ideas and solutions, thinks “outside the box.”
• Blue hat. Philosophical—uses metacommunication to organize and reflect on the thinking and communication taking place in the group, facilitates who wears what hat and when group members change hats.

Specific sequences or combinations of hats can be used to encourage strategic thinking. For example, the group leader may start off wearing the Blue Hat and suggest that the group start their decision-making process with some “White Hat thinking” in order to process through facts and other available information. During this stage, the group could also process through what other groups have done when faced with a similar problem. Then the leader could begin an evaluation sequence starting with two minutes of “Yellow Hat thinking” to identify potential positive outcomes, then “Black Hat thinking” to allow group members to express reservations about ideas and point out potential problems, then “Red Hat thinking” to get people’s gut reactions to the previous discussion, then “Green Hat thinking” to identify other possible solutions that are more tailored to the group’s situation or completely new approaches. At the end of a sequence, the Blue Hat would want to summarize what was said and begin a new sequence. To successfully use this method, the person wearing the Blue Hat should be familiar with different sequences and plan some of the thinking patterns ahead of time based on the problem and the group members. Each round of thinking should be limited to a certain time frame (two to five minutes) to keep the discussion moving.

• This decision-making method has been praised because it allows group members to “switch gears” in their thinking and allows for role playing, which lets people express ideas more freely. How can this help enhance critical thinking? Which combination of hats do you think would be best for a critical thinking sequence?
• What combinations of hats might be useful if the leader wanted to break the larger group up into pairs and why? For example, what kind of thinking would result from putting Yellow and Red together, Black and White together, or Red and White together, and so on?
• Based on your preferred ways of thinking and your personality, which hat would be the best fit for you? Which would be the most challenging? Why?

Influences on Decision Making

Many factors influence the decision-making process. For example, how might a group’s independence or access to resources affect the decisions they make? What potential advantages and disadvantages come with decisions made by groups that are more or less similar in terms of personality and cultural identities? In this section, we will explore how situational, personality, and cultural influences affect decision making in groups.

Situational Influences on Decision Making

A group’s situational context affects decision making. One key situational element is the degree of freedom that the group has to make its own decisions, secure its own resources, and initiate its own actions. Some groups have to go through multiple approval processes before they can do anything, while others are self-directed, self-governing, and self-sustaining. Another situational influence is uncertainty. In general, groups deal with more uncertainty in decision making than do individuals because of the increased number of variables that comes with adding more people to a situation. Individual group members can’t know what other group members are thinking, whether or not they are doing their work, and how committed they are to the group. So the size of a group is a powerful situational influence, as it adds to uncertainty and complicates communication.

Access to information also influences a group. First, the nature of the group’s task or problem affects its ability to get information. Group members can more easily make decisions about a problem when other groups have similarly experienced it. Even if the problem is complex and serious, the group can learn from other situations and apply what it learns. Second, the group must have access to flows of information. Access to archives, electronic databases, and individuals with relevant experience is necessary to obtain any relevant information about similar problems or to do research on a new or unique problem. In this regard, group members’ formal and information network connections also become important situational influences.

The urgency of a decision can have a major influence on the decision-making process. As a situation becomes more urgent, it requires more specific decision-making methods and types of communication.

Judith E. Bell – Urgent – CC BY-SA 2.0.

The origin and urgency of a problem are also situational factors that influence decision making. In terms of origin, problems usually occur in one of four ways:

• Something goes wrong. Group members must decide how to fix or stop something. Example—a firehouse crew finds out that half of the building is contaminated with mold and must be closed down.
• Expectations change or increase. Group members must innovate more efficient or effective ways of doing something. Example—a firehouse crew finds out that the district they are responsible for is being expanded.
• Something goes wrong and expectations change or increase. Group members must fix/stop and become more efficient/effective. Example—the firehouse crew has to close half the building and must start responding to more calls due to the expanding district.
• The problem existed from the beginning. Group members must go back to the origins of the situation and walk through and analyze the steps again to decide what can be done differently. Example—a firehouse crew has consistently had to work with minimal resources in terms of building space and firefighting tools.

In each of the cases, the need for a decision may be more or less urgent depending on how badly something is going wrong, how high the expectations have been raised, or the degree to which people are fed up with a broken system. Decisions must be made in situations ranging from crisis level to mundane.

Personality Influences on Decision Making

A long-studied typology of value orientations that affect decision making consists of the following types of decision maker: the economic, the aesthetic, the theoretical, the social, the political, and the religious (Spranger, 1928).

• The economic decision maker makes decisions based on what is practical and useful.
• The aesthetic decision maker makes decisions based on form and harmony, desiring a solution that is elegant and in sync with the surroundings.
• The theoretical decision maker wants to discover the truth through rationality.
• The social decision maker emphasizes the personal impact of a decision and sympathizes with those who may be affected by it.
• The political decision maker is interested in power and influence and views people and/or property as divided into groups that have different value.
• The religious decision maker seeks to identify with a larger purpose, works to unify others under that goal, and commits to a viewpoint, often denying one side and being dedicated to the other.

In the United States, economic, political, and theoretical decision making tend to be more prevalent decision-making orientations, which likely corresponds to the individualistic cultural orientation with its emphasis on competition and efficiency. But situational context, as we discussed before, can also influence our decision making.

Personality affects decision making. For example, “economic” decision makers decide based on what is practical and useful.

One Way Stock – Tough Decisions Ahead – CC BY-ND 2.0.

The personalities of group members, especially leaders and other active members, affect the climate of the group. Group member personalities can be categorized based on where they fall on a continuum anchored by the following descriptors: dominant/submissive, friendly/unfriendly, and instrumental/emotional (Cragan & Wright, 1999). The more group members there are in any extreme of these categories, the more likely that the group climate will also shift to resemble those characteristics.

• Dominant versus submissive. Group members that are more dominant act more independently and directly, initiate conversations, take up more space, make more direct eye contact, seek leadership positions, and take control over decision-making processes. More submissive members are reserved, contribute to the group only when asked to, avoid eye contact, and leave their personal needs and thoughts unvoiced or give into the suggestions of others.
• Friendly versus unfriendly. Group members on the friendly side of the continuum find a balance between talking and listening, don’t try to win at the expense of other group members, are flexible but not weak, and value democratic decision making. Unfriendly group members are disagreeable, indifferent, withdrawn, and selfish, which leads them to either not invest in decision making or direct it in their own interest rather than in the interest of the group.
• Instrumental versus emotional. Instrumental group members are emotionally neutral, objective, analytical, task-oriented, and committed followers, which leads them to work hard and contribute to the group’s decision making as long as it is orderly and follows agreed-on rules. Emotional group members are creative, playful, independent, unpredictable, and expressive, which leads them to make rash decisions, resist group norms or decision-making structures, and switch often from relational to task focus.

Cultural Context and Decision Making

Just like neighborhoods, schools, and countries, small groups vary in terms of their degree of similarity and difference. Demographic changes in the United States and increases in technology that can bring different people together make it more likely that we will be interacting in more and more heterogeneous groups (Allen, 2011). Some small groups are more homogenous, meaning the members are more similar, and some are more heterogeneous, meaning the members are more different. Diversity and difference within groups has advantages and disadvantages. In terms of advantages, research finds that, in general, groups that are culturally heterogeneous have better overall performance than more homogenous groups (Haslett & Ruebush, 1999). Additionally, when group members have time to get to know each other and competently communicate across their differences, the advantages of diversity include better decision making due to different perspectives (Thomas, 1999). Unfortunately, groups often operate under time constraints and other pressures that make the possibility for intercultural dialogue and understanding difficult. The main disadvantage of heterogeneous groups is the possibility for conflict, but given that all groups experience conflict, this isn’t solely due to the presence of diversity. We will now look more specifically at how some of the cultural value orientations we’ve learned about already in this book can play out in groups with international diversity and how domestic diversity in terms of demographics can also influence group decision making.

International Diversity in Group Interactions

Cultural value orientations such as individualism/collectivism, power distance, and high-/low-context communication styles all manifest on a continuum of communication behaviors and can influence group decision making. Group members from individualistic cultures are more likely to value task-oriented, efficient, and direct communication. This could manifest in behaviors such as dividing up tasks into individual projects before collaboration begins and then openly debating ideas during discussion and decision making. Additionally, people from cultures that value individualism are more likely to openly express dissent from a decision, essentially expressing their disagreement with the group. Group members from collectivistic cultures are more likely to value relationships over the task at hand. Because of this, they also tend to value conformity and face-saving (often indirect) communication. This could manifest in behaviors such as establishing norms that include periods of socializing to build relationships before task-oriented communication like negotiations begin or norms that limit public disagreement in favor of more indirect communication that doesn’t challenge the face of other group members or the group’s leader. In a group composed of people from a collectivistic culture, each member would likely play harmonizing roles, looking for signs of conflict and resolving them before they become public.

Power distance can also affect group interactions. Some cultures rank higher on power-distance scales, meaning they value hierarchy, make decisions based on status, and believe that people have a set place in society that is fairly unchangeable. Group members from high-power-distance cultures would likely appreciate a strong designated leader who exhibits a more directive leadership style and prefer groups in which members have clear and assigned roles. In a group that is homogenous in terms of having a high-power-distance orientation, members with higher status would be able to openly provide information, and those with lower status may not provide information unless a higher status member explicitly seeks it from them. Low-power-distance cultures do not place as much value and meaning on status and believe that all group members can participate in decision making. Group members from low-power-distance cultures would likely freely speak their mind during a group meeting and prefer a participative leadership style.

How much meaning is conveyed through the context surrounding verbal communication can also affect group communication. Some cultures have a high-context communication style in which much of the meaning in an interaction is conveyed through context such as nonverbal cues and silence. Group members from high-context cultures may avoid saying something directly, assuming that other group members will understand the intended meaning even if the message is indirect. So if someone disagrees with a proposed course of action, he or she may say, “Let’s discuss this tomorrow,” and mean, “I don’t think we should do this.” Such indirect communication is also a face-saving strategy that is common in collectivistic cultures. Other cultures have a low-context communication style that places more importance on the meaning conveyed through words than through context or nonverbal cues. Group members from low-context cultures often say what they mean and mean what they say. For example, if someone doesn’t like an idea, they might say, “I think we should consider more options. This one doesn’t seem like the best we can do.”

In any of these cases, an individual from one culture operating in a group with people of a different cultural orientation could adapt to the expectations of the host culture, especially if that person possesses a high degree of intercultural communication competence (ICC). Additionally, people with high ICC can also adapt to a group member with a different cultural orientation than the host culture. Even though these cultural orientations connect to values that affect our communication in fairly consistent ways, individuals may exhibit different communication behaviors depending on their own individual communication style and the situation.

Domestic Diversity and Group Communication

While it is becoming more likely that we will interact in small groups with international diversity, we are guaranteed to interact in groups that are diverse in terms of the cultural identities found within a single country or the subcultures found within a larger cultural group.

Gender stereotypes sometimes influence the roles that people play within a group. For example, the stereotype that women are more nurturing than men may lead group members (both male and female) to expect that women will play the role of supporters or harmonizers within the group. Since women have primarily performed secretarial work since the 1900s, it may also be expected that women will play the role of recorder. In both of these cases, stereotypical notions of gender place women in roles that are typically not as valued in group communication. The opposite is true for men. In terms of leadership, despite notable exceptions, research shows that men fill an overwhelmingly disproportionate amount of leadership positions. We are socialized to see certain behaviors by men as indicative of leadership abilities, even though they may not be. For example, men are often perceived to contribute more to a group because they tend to speak first when asked a question or to fill a silence and are perceived to talk more about task-related matters than relationally oriented matters. Both of these tendencies create a perception that men are more engaged with the task. Men are also socialized to be more competitive and self-congratulatory, meaning that their communication may be seen as dedicated and their behaviors seen as powerful, and that when their work isn’t noticed they will be more likely to make it known to the group rather than take silent credit. Even though we know that the relational elements of a group are crucial for success, even in high-performance teams, that work is not as valued in our society as the task-related work.

Despite the fact that some communication patterns and behaviors related to our typical (and stereotypical) gender socialization affect how we interact in and form perceptions of others in groups, the differences in group communication that used to be attributed to gender in early group communication research seem to be diminishing. This is likely due to the changing organizational cultures from which much group work emerges, which have now had more than sixty years to adjust to women in the workplace. It is also due to a more nuanced understanding of gender-based research, which doesn’t take a stereotypical view from the beginning as many of the early male researchers did. Now, instead of biological sex being assumed as a factor that creates inherent communication differences, group communication scholars see that men and women both exhibit a range of behaviors that are more or less feminine or masculine. It is these gendered behaviors, and not a person’s gender, that seem to have more of an influence on perceptions of group communication. Interestingly, group interactions are still masculinist in that male and female group members prefer a more masculine communication style for task leaders and that both males and females in this role are more likely to adapt to a more masculine communication style. Conversely, men who take on social-emotional leadership behaviors adopt a more feminine communication style. In short, it seems that although masculine communication traits are more often associated with high status positions in groups, both men and women adapt to this expectation and are evaluated similarly (Haslett & Ruebush, 1999).

Other demographic categories are also influential in group communication and decision making. In general, group members have an easier time communicating when they are more similar than different in terms of race and age. This ease of communication can make group work more efficient, but the homogeneity may sacrifice some creativity. As we learned earlier, groups that are diverse (e.g., they have members of different races and generations) benefit from the diversity of perspectives in terms of the quality of decision making and creativity of output.

In terms of age, for the first time since industrialization began, it is common to have three generations of people (and sometimes four) working side by side in an organizational setting. Although four generations often worked together in early factories, they were segregated based on their age group, and a hierarchy existed with older workers at the top and younger workers at the bottom. Today, however, generations interact regularly, and it is not uncommon for an older person to have a leader or supervisor who is younger than him or her (Allen, 2011). The current generations in the US workplace and consequently in work-based groups include the following:

• The Silent Generation. Born between 1925 and 1942, currently in their midsixties to mideighties, this is the smallest generation in the workforce right now, as many have retired or left for other reasons. This generation includes people who were born during the Great Depression or the early part of World War II, many of whom later fought in the Korean War (Clarke, 1970).
• The Baby Boomers. Born between 1946 and 1964, currently in their late forties to midsixties, this is the largest generation in the workforce right now. Baby boomers are the most populous generation born in US history, and they are working longer than previous generations, which means they will remain the predominant force in organizations for ten to twenty more years.
• Generation X. Born between 1965 and 1981, currently in their early thirties to midforties, this generation was the first to see technology like cell phones and the Internet make its way into classrooms and our daily lives. Compared to previous generations, “Gen-Xers” are more diverse in terms of race, religious beliefs, and sexual orientation and also have a greater appreciation for and understanding of diversity.
• Generation Y. Born between 1982 and 2000, “Millennials” as they are also called are currently in their late teens up to about thirty years old. This generation is not as likely to remember a time without technology such as computers and cell phones. They are just starting to enter into the workforce and have been greatly affected by the economic crisis of the late 2000s, experiencing significantly high unemployment rates.

The benefits and challenges that come with diversity of group members are important to consider. Since we will all work in diverse groups, we should be prepared to address potential challenges in order to reap the benefits. Diverse groups may be wise to coordinate social interactions outside of group time in order to find common ground that can help facilitate interaction and increase group cohesion. We should be sensitive but not let sensitivity create fear of “doing something wrong” that then prevents us from having meaningful interactions. Reviewing Chapter 8 “Culture and Communication” will give you useful knowledge to help you navigate both international and domestic diversity and increase your communication competence in small groups and elsewhere.

Key Takeaways

• Every problem has common components: an undesirable situation, a desired situation, and obstacles between the undesirable and desirable situations. Every problem also has a set of characteristics that vary among problems, including task difficulty, number of possible solutions, group member interest in the problem, group familiarity with the problem, and the need for solution acceptance.

The group problem-solving process has five steps:

• Define the problem by creating a problem statement that summarizes it.
• Analyze the problem and create a problem question that can guide solution generation.
• Generate possible solutions. Possible solutions should be offered and listed without stopping to evaluate each one.
• Evaluate the solutions based on their credibility, completeness, and worth. Groups should also assess the potential effects of the narrowed list of solutions.
• Implement and assess the solution. Aside from enacting the solution, groups should determine how they will know the solution is working or not.
• Before a group makes a decision, it should brainstorm possible solutions. Group communication scholars suggest that groups (1) do a warm-up brainstorming session; (2) do an actual brainstorming session in which ideas are not evaluated, wild ideas are encouraged, quantity not quality of ideas is the goal, and new combinations of ideas are encouraged; (3) eliminate duplicate ideas; and (4) clarify, organize, and evaluate ideas. In order to guide the idea-generation process and invite equal participation from group members, the group may also elect to use the nominal group technique.
• Common decision-making techniques include majority rule, minority rule, and consensus rule. With majority rule, only a majority, usually one-half plus one, must agree before a decision is made. With minority rule, a designated authority or expert has final say over a decision, and the input of group members may or may not be invited or considered. With consensus rule, all members of the group must agree on the same decision.

Several factors influence the decision-making process:

• Situational factors include the degree of freedom a group has to make its own decisions, the level of uncertainty facing the group and its task, the size of the group, the group’s access to information, and the origin and urgency of the problem.
• Personality influences on decision making include a person’s value orientation (economic, aesthetic, theoretical, political, or religious), and personality traits (dominant/submissive, friendly/unfriendly, and instrumental/emotional).
• Cultural influences on decision making include the heterogeneity or homogeneity of the group makeup; cultural values and characteristics such as individualism/collectivism, power distance, and high-/low-context communication styles; and gender and age differences.
• Scenario 1. Task difficulty is high, number of possible solutions is high, group interest in problem is high, group familiarity with problem is low, and need for solution acceptance is high.
• Scenario 2. Task difficulty is low, number of possible solutions is low, group interest in problem is low, group familiarity with problem is high, and need for solution acceptance is low.
• Scenario 1: Academic. A professor asks his or her class to decide whether the final exam should be an in-class or take-home exam.
• Scenario 2: Professional. A group of coworkers must decide which person from their department to nominate for a company-wide award.
• Scenario 3: Personal. A family needs to decide how to divide the belongings and estate of a deceased family member who did not leave a will.
• Scenario 4: Civic. A local branch of a political party needs to decide what five key issues it wants to include in the national party’s platform.
• Group communication researchers have found that heterogeneous groups (composed of diverse members) have advantages over homogenous (more similar) groups. Discuss a group situation you have been in where diversity enhanced your and/or the group’s experience.

Adams, K., and Gloria G. Galanes, Communicating in Groups: Applications and Skills , 7th ed. (Boston, MA: McGraw-Hill, 2009), 220–21.

Allen, B. J., Difference Matters: Communicating Social Identity , 2nd ed. (Long Grove, IL: Waveland, 2011), 5.

Bormann, E. G., and Nancy C. Bormann, Effective Small Group Communication , 4th ed. (Santa Rosa, CA: Burgess CA, 1988), 112–13.

Clarke, G., “The Silent Generation Revisited,” Time, June 29, 1970, 46.

Cragan, J. F., and David W. Wright, Communication in Small Group Discussions: An Integrated Approach , 3rd ed. (St. Paul, MN: West Publishing, 1991), 77–78.

de Bono, E., Six Thinking Hats (Boston, MA: Little, Brown, 1985).

Delbecq, A. L., and Andrew H. Ven de Ven, “A Group Process Model for Problem Identification and Program Planning,” The Journal of Applied Behavioral Science 7, no. 4 (1971): 466–92.

Haslett, B. B., and Jenn Ruebush, “What Differences Do Individual Differences in Groups Make?: The Effects of Individuals, Culture, and Group Composition,” in The Handbook of Group Communication Theory and Research , ed. Lawrence R. Frey (Thousand Oaks, CA: Sage, 1999), 133.

Napier, R. W., and Matti K. Gershenfeld, Groups: Theory and Experience , 7th ed. (Boston, MA: Houghton Mifflin, 2004), 292.

Osborn, A. F., Applied Imagination (New York: Charles Scribner’s Sons, 1959).

Spranger, E., Types of Men (New York: Steckert, 1928).

Stanton, C., “How to Deliver Group Presentations: The Unified Team Approach,” Six Minutes Speaking and Presentation Skills , November 3, 2009, accessed August 28, 2012, http://sixminutes.dlugan.com/group-presentations-unified-team-approach .

Thomas, D. C., “Cultural Diversity and Work Group Effectiveness: An Experimental Study,” Journal of Cross-Cultural Psychology 30, no. 2 (1999): 242–63.

Communication in the Real World Copyright © 2016 by University of Minnesota is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License , except where otherwise noted.

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The Problem-Solving Process

Looking at the basic problem-solving process to help keep you on the right track.

By the Mind Tools Content Team

Problem-solving is an important part of planning and decision-making. The process has much in common with the decision-making process, and in the case of complex decisions, can form part of the process itself.

We face and solve problems every day, in a variety of guises and of differing complexity. Some, such as the resolution of a serious complaint, require a significant amount of time, thought and investigation. Others, such as a printer running out of paper, are so quickly resolved they barely register as a problem at all.

Despite the everyday occurrence of problems, many people lack confidence when it comes to solving them, and as a result may chose to stay with the status quo rather than tackle the issue. Broken down into steps, however, the problem-solving process is very simple. While there are many tools and techniques available to help us solve problems, the outline process remains the same.

The main stages of problem-solving are outlined below, though not all are required for every problem that needs to be solved.

1. Define the Problem

Clarify the problem before trying to solve it. A common mistake with problem-solving is to react to what the problem appears to be, rather than what it actually is. Write down a simple statement of the problem, and then underline the key words. Be certain there are no hidden assumptions in the key words you have underlined. One way of doing this is to use a synonym to replace the key words. For example, ‘We need to encourage higher productivity ’ might become ‘We need to promote superior output ’ which has a different meaning.

2. Analyze the Problem

Ask yourself, and others, the following questions.

• Where is the problem occurring?
• When is it occurring?
• Why is it happening?

Be careful not to jump to ‘who is causing the problem?’. When stressed and faced with a problem it is all too easy to assign blame. This, however, can cause negative feeling and does not help to solve the problem. As an example, if an employee is underperforming, the root of the problem might lie in a number of areas, such as lack of training, workplace bullying or management style. To assign immediate blame to the employee would not therefore resolve the underlying issue.

Once the answers to the where, when and why have been determined, the following questions should also be asked:

• Where can further information be found?
• Is this information correct, up-to-date and unbiased?
• What does this information mean in terms of the available options?

3. Generate Potential Solutions

When generating potential solutions it can be a good idea to have a mixture of ‘right brain’ and ‘left brain’ thinkers. In other words, some people who think laterally and some who think logically. This provides a balance in terms of generating the widest possible variety of solutions while also being realistic about what can be achieved. There are many tools and techniques which can help produce solutions, including thinking about the problem from a number of different perspectives, and brainstorming, where a team or individual write as many possibilities as they can think of to encourage lateral thinking and generate a broad range of potential solutions.

4. Select Best Solution

When selecting the best solution, consider:

• Is this a long-term solution, or a ‘quick fix’?
• Is the solution achievable in terms of available resources and time?
• Are there any risks associated with the chosen solution?
• Could the solution, in itself, lead to other problems?

This stage in particular demonstrates why problem-solving and decision-making are so closely related.

5. Take Action

In order to implement the chosen solution effectively, consider the following:

• What will the situation look like when the problem is resolved?
• What needs to be done to implement the solution? Are there systems or processes that need to be adjusted?
• What will be the success indicators?
• What are the timescales for the implementation? Does the scale of the problem/implementation require a project plan?
• Who is responsible?

Once the answers to all the above questions are written down, they can form the basis of an action plan.

6. Monitor and Review

One of the most important factors in successful problem-solving is continual observation and feedback. Use the success indicators in the action plan to monitor progress on a regular basis. Is everything as expected? Is everything on schedule? Keep an eye on priorities and timelines to prevent them from slipping.

If the indicators are not being met, or if timescales are slipping, consider what can be done. Was the plan realistic? If so, are sufficient resources being made available? Are these resources targeting the correct part of the plan? Or does the plan need to be amended? Regular review and discussion of the action plan is important so small adjustments can be made on a regular basis to help keep everything on track.

Once all the indicators have been met and the problem has been resolved, consider what steps can now be taken to prevent this type of problem recurring? It may be that the chosen solution already prevents a recurrence, however if an interim or partial solution has been chosen it is important not to lose momentum.

Problems, by their very nature, will not always fit neatly into a structured problem-solving process. This process, therefore, is designed as a framework which can be adapted to individual needs and nature.

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