Make Faster and Better Decisions: End Procrastination, Start Getting Results

Contents

• WHAT IS A DECISION MAKING FRAMEWORK?

• EXAMPLE FRAMEWORKS

• WHEN TO USE WHICH METHOD

• FIND OUT MORE

• BIG DECISIONS IN THE NEWS

Decision making frameworks are structured approaches to help make more effective and informed decisions. This involves swiftly analysing and evaluating information and problems to make sound choices.

Depending on the size of the decision, available time and other factors, different types of decision-making approaches can be used. There should not be a single approach to rule them all.

Good decision-making approaches can help you to…

• Clarify objectives

• Improve prioritisation

• Invite healthy dialogue

• Back your final decision

• Structure arguments more clearly

• Remove emotion from the equation, leading to more accurate decisions

Read on for example frameworks and how they can be used.

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1. Eisenhower Matrix:

Scenario: A software development team is facing multiple tasks and feature requests.

Application:The Scrum Master uses the Eisenhower Matrix to categorise tasks:

• Urgent and Important: Critical bug fixes

• Important but Not Urgent: New feature development

• Urgent but Not Important: Responding to non-critical client emails

• Neither Urgent nor Important: Updating old documentation

This helps the team prioritise critical bug fixes while scheduling time for important feature development.

2. RAPID Framework:

Scenario: A marketing team needs to decide on a new campaign strategy.

Application:

• Recommend: The marketing analyst provides data-driven campaign options

• Agree: The legal team reviews for compliance

• Perform: The creative team delivers the chosen strategy

• Input: The sales team provides insights on customer preferences

• Decide: The marketing director makes the final decision

This clarifies roles and streamlines the decision-making process.

💡The time laps between each team or owner doing their task could easily become an excuse to hold multiple meetings or wait days between each action, which no longer becomes RAPID. When using this approach and others below, make sure to agree the response timelines and hold everyone to those dates.

3. OODA Loop:

Scenario: A startup is launching a new product in a rapidly changing market.

Application:

• Observe: Monitor competitor actions and market trends

• Orient: Analyse how these factors affect the product launch

• Decide: Choose to adjust pricing or features based on the analysis

• Act: Implement the changes quickly

Enables the team to iterate rapidly, adapting to market changes in real-time.

4. Kepner-Tregoe Decision Analysis:

Scenario: A CTO needs to choose a new cloud service provider.

Application:

1. Define objectives (cost, reliability, scalability)

2. Weigh the importance of each objective

3. Evaluate how each provider meets these objectives

4. Calculate scores and choose the highest-scoring option

This provides an objective method for comparing complex options.

5. SWOT Analysis:

Scenario: A retail company is considering expanding into e-commerce.

Application: The management team conducts a SWOT analysis:

• Strengths: Strong brand recognition, existing customer base

• Weaknesses: Limited online experience, current IT infrastructure

• Opportunities: Untapped online market, potential for increased sales

• Threats: Established online competitors, cybersecurity risks

This helps identify key areas to focus on and potential challenges to address.

6. Pareto Analysis:

Scenario: A customer service team is trying to reduce complaint volume.

Application:

1. Identify and list problems

2. Score problems by frequency

3. Group problems by category

4. Calculate the cumulative score of each group

5. Create a Pareto chart

The team discovers that 80% of complaints come from 20% of issue types, allowing them to focus on resolving these key issues.

 💡The Pareto principle is also known as the 80:20 rule and can be applied to many scenarios. It’s a commonly held belief that focussing on the right 20% can address 80% of problems.

7. Decision Trees:

Scenario: A pharmaceutical company is deciding whether to proceed with a new drug trial.

Application: Create a decision tree showing:

• Probability of successful trial

• Potential revenue if successful

• Costs of conducting the trial

• Potential losses if unsuccessful

This visual representation helps quantify risks and potential outcomes.

8. Six Thinking Hats:

Scenario: A product team is brainstorming ideas for a new feature.

Application: The team uses different "hats" to approach the problem:

• White Hat: Look at available data

• Red Hat: Share gut feelings about ideas

• Black Hat: Identify potential problems

• Yellow Hat: Highlight benefits and value

• Green Hat: Generate creative solutions

• Blue Hat: Manage the thinking process

This ensures the team considers all perspectives before making a decision.

9. SPADE Framework:

Scenario: A non-profit organisation is deciding on a new fundraising strategy.

Application:

• Setting: Define the current fundraising landscape

• Problem: Identify the need for increased donations

• Analysis: Research various fundraising methods

• Decision: Choose the most promising strategy

• Execution: Implement the chosen strategy

This structured approach ensures thorough consideration of the problem and potential solutions.

10. Cost-Benefit Analysis:

Scenario: A manufacturing company is considering automating part of its production line.

Application:

1. Identify costs: Equipment, installation, training

2. Identify benefits: Increased production, reduced labor costs

3. Assign monetary values to each

4. Compare total costs to total benefits

5. Make a decision based on the net benefit

This approach helps justify investment decisions to stakeholders. If you’ve had to develop a business case for your project or investment decisions, you will have probably done this already as its a crucial part of deciding the best investment approach.

1. Eisenhower Matrix (Urgent-Important Matrix)

   • Best used when prioritising smaller tasks and managing time effectively.

2. RAPID Framework (Recommend, Agree, Perform, Input, Decide)

   • Best used when clarifying roles and responsibilities in decision-making.

3. OODA Loop (Observe, Orient, Decide, Act)

   • Best used when operating in fast-changing environments.

4. Kepner-Tregoe Decision Analysis

   • Best used when evaluating complex options objectively.

5. SWOT Analysis (Strengths, Weaknesses, Opportunities, Threats)

   • Best used when assessing strategic initiatives.

6. Pareto Analysis (80/20 Rule)

   • Best used when identifying the most impactful factors.

7. Decision Trees

   • Best used when visualising outcomes of different choices.

8. Six Thinking Hats

   • Best used when encouraging diverse perspectives in decision-making.

9. SPADE Framework (Setting, Problem, Analysis, Decision, Execution)

   • Best used when structuring complex decisions.

10. Cost-Benefit Analysis

    • Best used when quantifying potential outcomes of different choices.

In case you’re wondering, here are the decision making approaches I use the most:

• I use Eisenhower for day-to-day decisions with limited impact. Especially for prioritising my workload or assigning team members to projects.

• I always use cost benefit analysis to for business cases or to work out whether something is worth investing my time.

• I use PARETO when I need to make a quick decision. This can also work when thinking about who the most productive people are in your teams.

• I use SWOT mainly when looking for mitigations to risks or manage dependencies.

Want to go deeper on this topic? Here’s some recommended reading:

What I’m reading…

Bullet Proof Problem Solving: The One Skill That Changes Everything. Charles Conn, Robert McClean

Other recommendations…

1. "Thinking, Fast and Slow" by Daniel Kahneman

   • Explores the dual systems of thinking and provides insights into how decisions are made.

2. "Decisive: How to Make Better Choices in Life and Work" by Chip Heath and Dan Heath

   • Offers a four-step process to counteract common decision-making biases.

3. "The Decision Book: 50 Models for Strategic Thinking" by Mikael Krogerus and Roman Tschäppeler

   • Presents 50 decision-making models applicable to various situations.

4. "Smart Choices: A Practical Guide to Making Better Decisions" by John S. Hammond, Ralph L. Keeney, and Howard Raiffa

   • Introduces a proven approach for making better decisions with practical tools and techniques.

5. "The Decision Model: A Business Logic Framework Linking Business and Technology" by Barbara von Halle

   • Focuses on decision modelling in business and technology contexts.

In case you missed it, here are some recent big decisions made in the world of tech delivery. I wonder which frameworks they used…

Big Decisions:

• META’s AI spending spree just fine with Wall St

• Canva acquires Leonardo.ai to boost its generative AI efforts

Big Opinions:

• Agility is the key to a strong GenAI Strategy

• Generative AI boosts project management efficiency says PMI