1. 1 PROBLEM SOLVING AND DECISION-MAKING

2. 2 Running a Stoplight: $90 fine. $90 fine. 10% federal income tax rate. 10% federal income tax rate. 8% Idaho income tax rate. 8% Idaho income tax rate. Employee share of FICA at 7.65% Employee share of FICA at 7.65% Need $113 pretax earnings to pay a $90 fine. Need $113 pretax earnings to pay a $90 fine. If you figure one minute of your time is worth $113, that extrapolates to $6,780 an hour. If you figure one minute of your time is worth $113, that extrapolates to $6,780 an hour. At a median wage of $14.58 an hour in Idaho, you would have to work 7.8 hrs. to pay this fine. At a median wage of $14.58 an hour in Idaho, you would have to work 7.8 hrs. to pay this fine. Additionally, you might receive an increase in your automobile insurance premium. Additionally, you might receive an increase in your automobile insurance premium.

3. 3 Normally, skill levels are determined by the number of times you perform or repeat a task. Improving keyboarding skills. Improving keyboarding skills. Learning to play a musical instrument. Learning to play a musical instrument. Competency in cooking. Competency in cooking. Competency in bowling. Competency in bowling. Parallel parking an automobile. Parallel parking an automobile. Shooting a rifle. Shooting a rifle.

4. 4 Why do humans have difficulty making decisions? What keeps mankind from developing competency as a decision-maker? When surveyed, what is the primary motivation for people when they make a decision? When surveyed, what is the primary motivation for people when they make a decision? It wasn’t about the outcome! It was about It wasn’t about the outcome! It was about ????????????????????????????????? ?????????????????????????????????

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6. 6 Albert Einstein stated: “The significant problems we face cannot be solved at the same level of thinking we were at when we created them.” “The significant problems we face cannot be solved at the same level of thinking we were at when we created them.” In other words, if nothing changes, nothing changes. In other words, if nothing changes, nothing changes.

7. 7 Do we take training on decision-making skills?

8. 8 Recommended Books and Movies: The movie “Unstoppable” The movie “Unstoppable” The movie “123 Hours” The movie “123 Hours” Any book on the Titanic. Any book on the Titanic. “Into Thin Air” by Jon Krakaur. “Into Thin Air” by Jon Krakaur. “Into the Wild” by Jon Krakaur. “Into the Wild” by Jon Krakaur. Any book by John D. Arnold. Any book by John D. Arnold. “The Art of Decision Making” “The Art of Decision Making” “What in the World Were You Thinking” by Ralph Jones. “What in the World Were You Thinking” by Ralph Jones.

9. 9 Focus Point #1: Small decisions become big decisions through frequency. Don’t get into the mindset that it is a small, inconsequential decision. Don’t get into the mindset that it is a small, inconsequential decision. Repeated enough times, the probabilities will catch up with you, and a small decision will become the biggest decision of your life. Repeated enough times, the probabilities will catch up with you, and a small decision will become the biggest decision of your life.

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12. 12 Focus Point #2: Decisions involve consequences. Ask yourself what are the consequences to your decision? Ask yourself what are the consequences to your decision? Understanding the consequences helps us put decisions into perspective. Understanding the consequences helps us put decisions into perspective. Spend more time arriving at the right decision and less time correcting wrong decisions. Spend more time arriving at the right decision and less time correcting wrong decisions.

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14. 14 Focus Point #3: Ask yourself can I revoke my decision? Can I take it back? If the answer is no, make a greater effort to make the right decision the first time. If the answer is no, make a greater effort to make the right decision the first time.

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16. 16 Focus Point #4: Think preventive, not reactionary! Reactionary decisions often involve: Reactionary decisions often involve: A great deal of time. A great deal of time. Large sums of money. Large sums of money. Heartache. Heartache. This is known as “Management by catastrophe” This is known as “Management by catastrophe” It becomes similar to a dog chasing its tail! It becomes similar to a dog chasing its tail!

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18. 18 Systematic or Six Step Process to Decision-making: An organized evaluation of a decision situation considering and reviewing the critical information needed to make good decisions. An organized evaluation of a decision situation considering and reviewing the critical information needed to make good decisions.

19. 19 Step #1, Identify the problem. Separate the problem from the symptoms: Separate the problem from the symptoms: What is the consequence of doing nothing? What is the consequence of doing nothing? What is not the problem? What is not the problem? What do we want to preserve, achieve, or avoid? What do we want to preserve, achieve, or avoid? Is something wrong that needs corrected? Is something wrong that needs corrected? Is something threatening that needs prevented? Is something threatening that needs prevented? Is something inviting that needs accepted? Is something inviting that needs accepted? Is something missing that needs provided? Is something missing that needs provided?

20. 20 Step #2, Determine alternative courses of action: Using practical, feasible, cost effective research. Using practical, feasible, cost effective research.

21. 21 Step #3, Analyze all pertinent alternatives: Establish comparative standards. Establish comparative standards. Designate priorities – what needs to be absolutely satisfied. Designate priorities – what needs to be absolutely satisfied. Apply the Law of Diminishing Returns. Apply the Law of Diminishing Returns.

22. 22 Step #4, Select the best alternative: Strike a balance between feelings & logic. Strike a balance between feelings & logic. Know your values. Know your values. Assess your goals, resources, strengths, and weaknesses. Assess your goals, resources, strengths, and weaknesses. It is normally your resources and strengths that get you through a bad decision. It is normally your resources and strengths that get you through a bad decision. It is normally your weaknesses that lead to a bad decision. It is normally your weaknesses that lead to a bad decision. Troubleshoot your decision; anticipate problems and their impact. Troubleshoot your decision; anticipate problems and their impact.

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25. 25 Step #5, Implement the decision! Quickly and efficiently. Quickly and efficiently. On January 28, 1986, the right decision was made but was not implemented. What was that decision? On January 28, 1986, the right decision was made but was not implemented. What was that decision?

26. 26 Step #6, Follow up the decision: Measure your success. Measure your success. Use the results as feedback. Use the results as feedback.

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28. 28 John D. Arnold: Owner of a business called “Executrak.” Owner of a business called “Executrak.” Has written nine narrative (not math analytical) books on decision-making. Has written nine narrative (not math analytical) books on decision-making. Books are published by the American Management Association (Amacom Press) Books are published by the American Management Association (Amacom Press) Arnold’s books are commonly found in the psychology section. Arnold’s books are commonly found in the psychology section. 1972, “Make Up Your Mind” (1) 1972, “Make Up Your Mind” (1) 1978, “The Art of Decision Making” 1978, “The Art of Decision Making” 1995, “The Complete Problem Solver” 1995, “The Complete Problem Solver”

29. 29 John D. Arnold’s Philosophies: ?????????????? ??????????????

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31. 31 Matrix Process: Create a list of desirable objectives. Create a list of desirable objectives. Edit the list. Edit the list. Prioritize the list. Prioritize the list. Move the prioritized list to the matrix. Move the prioritized list to the matrix. The top desirable objective must get a value of 100. The top desirable objective must get a value of 100. Every criteria must receive a value lower than the one above it and higher than the one below it. Every criteria must receive a value lower than the one above it and higher than the one below it. List all alternatives horizontally across the matrix. List all alternatives horizontally across the matrix. The top alternative that meets the desirable objective must get a value of 100. The top alternative that meets the desirable objective must get a value of 100. Multiply the column value times the objective value for a column score. Multiply the column value times the objective value for a column score. Select the next best alternative until all the alternatives have been ranked against the criteria. Select the next best alternative until all the alternatives have been ranked against the criteria. Total the matrix. Total the matrix.

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35. 35 If our decision-making is succeeding, we should be able to eliminate the following phrases from our vocabulary: What in the world was I thinking? What in the world was I thinking? If only. If only. Next time. Next time. Of all sad words of tongue or pen, the saddest are these, it might have been. Of all sad words of tongue or pen, the saddest are these, it might have been. If I could only turn the clock back. If I could only turn the clock back. If I had it to do over again. If I had it to do over again.

36. 36 In Conclusion: “If you always sit where you always sat, you will always see what you always saw, and you will always get what you always got.” Laura Lipton “If you always sit where you always sat, you will always see what you always saw, and you will always get what you always got.” Laura Lipton