1. Decision Making Brigham Young University January 30, 2008

2. Workforce Skills in Demand at BYU In 2001, BYU managers said the number one skill their people needed to develop was: Problem Solving

3. There is nothing so useless as doing efficiently that which should not be done at all. - Peter Drucker Do less with less.

4. Why don’t we always make the best decisions? Three Blunders: Premature commitments Wrongheaded investments Failure prone practices –Dr. Paul Nutt, Why Decisions Fail

5. Blunder 1 – Premature Commitments Pain Gain There is perhaps no psychological skill more fundamental than resisting impulse. - Daniel Goleman, Emotional Intelligence

6. Blunder 2 – Wrongheaded Investments Every problem has an easy, cheap, obvious, and wrong solution. - Donald Rumsfeld

7. Blunder 3 – Failure Prone Practices Idea vs. Discovery

8. Decision-Making Process 1.Evaluate the Problem 2.Identify the Objective 3.Plan the Decision 4.Generate Alternatives 5.Screen Alternatives 6.Decide

9. 1. Evaluate the Problem Please give me an example. These are the five most important words used in the [business person’s] arsenal, and they can’t be used enough. -Tom Peters

10. While hard data may inform our intellect, it is largely soft data that generates wisdom…Hard information is often limited in scope, lacking richness, and often fails to encompass important non economic and non quantitative factors. – Henry Mintzberg, The Rise and Fall of Strategic Thinking

11. 2. Identify the Objective The reason most people never reach their goals is that they don’t define them… Winners can tell you where they are going, what they plan to do along the way, and who will be sharing the adventure with them. – Denis Waitley

12. SMART Objectives… Specific Measurable Achievable Reach Time-bound

13. 3. Plan the Decision IYouWe Only 7 percent of decisions are made after considering long-term priorities or conferring with colleagues. – Dr. Paul Nutt

14. 4. Generate Alternatives Success rates of students successfully solving a business problem, 1968, University of Michigan Group 1: Instructions = 39% Group 2: Instructions + “be creative” = 52%

15. 5. Screen Alternatives Link to objectives Gut check

16. 6. Decide Satisfice vs. Maximize

17. Decision-Making Process 1.Evaluate the Problem 2.Identify the Objective 3.Plan the Decision 4.Generate Alternatives 5.Screen Alternatives 6.Decide

18. Ego in Decision Making 1/3ego drove the decision 81%edict or persuasion drove the decision 2/3never explored alternatives once they made up their minds - Dr. Paul Nutt, Why Decisions Fail

19. Ego in Decision-Making 1.Being defensive 2.Showcasing your brilliance 3.Seeking approval - MarcumSmith, BusinessThink

20. Strengths x Ego = Weakness Confidence Quickness Sharp wit Determination Dedication Commitment Perseverance Persuasive Sense of infallibility Overhastiness Abrasiveness Inflexibility Workaholism Intolerance Resistance to change Manipulation - Adapted from The Paradox of Success by John O’Neil

21. How to Combat Ego Exercise humility Assume good intentions Focus on the issue at hand Understand the intent and purpose of the question - MarcumSmith, BusinessThink

22. The people who get on in this world are the people who get up and look for circumstances they want, and if they can’t find them, make them. - George Bernard Shaw The nicest thing about not planning is that failure comes as a complete surprise rather than being preceded by a period of worry and depression. - Sir John Harvey-Jones