Averages

A friend was relating a conversation with a Californian about their 60 degree average days.  He was quick to point out that our Houston fall average has also been 60 degrees, but we've arrived at that average with swings from 40 to 80 degrees.  In this case, averages yield entirely different wardrobe needs.  This was just another reminder that when we are making decisions, we often need to know the supporting data, rather than just the average of the numbers.

Data Dumps and Deficits

We are all so inundated with information that it's easy to feel that we're being buried by bytes.  With the abundance of available data we are often left with a usable information deficit. 

We all process information differently.  I often refer to myself as queen of cliff notes because I like to get quickly to the options and decision.  Others want to comb through every piece of information.  Analysis paralysis and firing before ready both have consequences.  Regardless of our decision making process and preference, we all benefit from an assessment of what the data means. 

Sharing summary information turns data dumps into data driven decisions.

Taking Care of Others

Sometimes we are so busy taking care of others that we lose sight of bigger issues such as who should/could/would assume other responsibilities. It is in everyone's best interest to differentiate between:

• what others need v. what we think they need
• what they need v. what we need
• what we can do to meet their needs and ours v. what they can do to meet our needs and theirs

When we view ourselves as we would others, we are better able to serve everyone's needs and interests.

Best and Worst Decisions

Sometimes our best and worst decisions are the same.  In a  recent conversation with a business executive, it was obvious that he encountered monumental problems in his new organization.  Yet he has been able to achieve remarkable progress.  Looking only at the problems to be addressed, this would seem to be a terrible career decision.  By adding accomplishments to the evaluation, it also was a terrific career decision. 

Options

One of my youngest friends was just accepted to a pre-K at a wonderful private school that she could attend through 8th grade.  As is the case with many of my friends, this child's parents have deliberated since her birth about her educational options.  During the competitive acceptance process, this bright child was placed on a waiting list and her parents began exploring other options.  They weighed every factor and ultimately found a new home in a neighborhood with many young families and strong public schools.  Decision making becomes more difficult as the importance increases. They've had the chance to weigh all the variables and choose the option that works best for their family. 

There are many instances, such as this, where there is not one right answer.  Having multiple attractive options gives us more control.

Predictably Irrational

Dan Ariely's fascinating book, Predictably Irrational - The Hidden Forces That Shape Our Decisions, gives us insight into the reasons that most people don't make smart, rational choices.  He explores the impact of relativity, anchoring, free offers, social norms, ownership valuation, price conditioning and non-cash cheating.

Relativity captures the concept that that most people must see a product or service in context with other like things before they know if this is something they want.

Anchoring is our practice of establishing a particular price to establish the worth of a product.

Our captivation with free offers often moves us to make purchases we would not otherwise consider.

Social norms can influence us to volunteer our service when we would otherwise be unwilling to provide discounted service.  When money is involved we tend to use market value to assess the situation.

Once we own something, we become vested and tend to elevate the value of the item.

Price conditioning can cause us to believe that a higher cost product delivers higher value.

Non-cash cheating takes many forms from increasing the value of a lost insured item to wearing and returning garments.  It is easier to rationalize these actions when cash is one step removed from the acts.

His excellent examples for each of these concepts provide a new lens for considering rational and irrational decision-making.

Choices

Think of several people you know well. My guess is that there are differing degrees of decisiveness among your list, as is the case with mine.  I have a friend who wants to evaluate all possibilities before making a choice. By contrast, when I find something I like, I am happy to make that choice and move on. 

Sheena Iyengar, a professor at Columbia Business School, has written a book, The Art of Choosing.  I enjoyed her findings about choosing from a presentation that she made:

• Some decisions are easier when choices are narrowed.
• We assume that we know what we want, but don't always recognize our preferences.
• Happiness comes from wanting what we get.
• We sometimes make choices contrary to our preferences in order to express our individuality. 
• When we are seduced by too many possibilities, we may avoid making a decision.

I've often said that everyone wants options.  The ability to choose is energizing and liberating.  However, unlimited choice can be paralyzing.

Yes or No?

We generally love to say and hear "yes" and we don't usually enjoy saying or hearing "no".  Both timely answers are important.  Indecision saps productivity by keeping everyone involved in a holding pattern. Answers allow closure.  We can move forward with implemention or next steps when the answer is positive.  And when the answer is negative, we can move to another option or opportunity. Timely answers provide one of the easiest productivity improvements available.