Thread Rating:
  • 1 Vote(s) - 4 Average
  • 1
  • 2
  • 3
  • 4
  • 5
How to make better business decisions through proven techniques
#1
Often we have the time to think through if certain decision is good for us, it is just that we do not know what is the correct techniques to adopt. I am going to share with you a few techniques I used to make decisions.

10-10-10 Rule: Every time I find myself in a situation where there appears to be no solution that will make everyone happy, I ask myself three questions:
  • What are the consequences of my decision in 10 minutes?
  • In 10 months?
  • And in 10 years?
The way the brain works, your decisions are rooted in feelings , and the long-term considerations should help in making those clear. Welch says that with the answers, you will figure out if the decision is aligned with your priorities, or maybe even discover your priorities in the process. The clarity of thought also makes it easy to explain the choice to those who will feel its impact.

Regret minimisation framework: The negative emotion experienced when learning that an alternative course of action would have resulted in a more favourable outcome. The theory of regret aversion or anticipated regret proposes that when facing a decision, individuals may anticipate the possibility of feeling regret after the uncertainty is resolved and thus incorporate in their choice their desire to eliminate or reduce this possibility.

Imagine yourself in 80 years old thinking back about this decision and will your later self approve what you did today.

Eisenhower matrix: Also referred to as Urgent-Important Matrix, helps you prioritise tasks by urgency and importance, sorting out less urgent and important tasks which you should either delegate or not do at all.

[Image: hoegsyezvpmdnsbgt2g5.jpg]
  1. Putting things to-do on a list frees your mind. But always question what is worth doing first.
  2. Try limiting yourself to no more than eight tasks per quadrant. Before adding another one, complete the most important one first. Remember: It is not about collecting but finishing tasks.
  3. You should always maintain only one list for both business and private tasks. That way you will never be able to complain about not having done anything for your family or yourself at the end of the day.
  4. Do not let you or others distract you. Do not let others define your priority. Plan in the morning, then work on your stuff. And in the end, enjoy the feeling of completion.
  5. Finally, try not to procrastinate that much. Not even by over-managing your to-dos.
Parkinson's Law: observation that "work expands to fill the time available for its completion," and that a sufficiently large bureaucracy will generate enough internal work to keep itself 'busy' and so justify its continued existence without commensurate output. Proposed in 1955 in jest by the UK political analyst and historian Cyril Northcote Parkinson (1909-93) while criticizing the British Admiralty (which was growing bigger while the number of sailors and ships under its care was going down). It is quoted more as a keen insight into the functioning of large organizations than as an empirical reality.
  • Work without your computer charger. Force yourself to get stuff done before your computer runs out of battery.
  • Use the Pomodoro technique. The Pomodoro technique helps you to systematically chop your tasks into chunks, and forces you to set a specific timetable for accomplishing them. For more details on how to implement the Pomodoro technique, check back for our full guide on this next week.
  • Restrict your time artificially by moving throughout the day. Force yourself to move every two hours, and create a set task list. Check out the workplace popcorn strategy for more on this.
  • Instead of trying to write 1,000 words in a day, run x miles in a day, or go to the gym, make a rule to do XYZ before 10am. Get it done early and then let yourself coast. You’ll be surprised at how much this frees up the rest of your day.
  • An extreme example of this is to stop working after noon altogether. I don’t do this (I have too much work to do!) but Sean Ogle swears by it. If you wake up early enough, you can certainly use this to get more done and to have more free time.
  • Blackmail yourself. Get an accountability partner who will force you to pay up, literally, if you work past a certain time or take too long to something. I do this with Vic for fitness stuff and with Joanna for work stuff. In addition to enjoying the mental victories, if you use this approach, you’ll be motivated by real financial consequences.
  • Set a hard deadline. Find a four-week program or an eight-week fitness program, set a specific goal for the end of that length of time, and set it in stone. Have something like a photo shoot planned to motivate you to hit your goals. You can certainly lose ten pounds in six months, but you can also do it in eight weeks if you set eight weeks as your limit.
  • Limit tasks like responding to email to thirty minutes a day. Instead of agonizing over each email, spend thirty minutes on your emails at the end of the day and be done with it. You’ll find that smaller tasks take up much less time this way.
  • Does your coffee shop close at a certain time? If so, force yourself to stop working when it closes.
Circle of Competence: Warren Buffett's belief that an investor's best strategy is to select an area where they can know significantly more than the average investor (called their circle of competence), and focus their efforts on that area.

[Image: circle.png]

Do what you are good at and your will never dejected and perform more effectively.
Reply
#2
Very good decision making techniques. I don't have to wait till 80 I already regretted some of my choices. Tongue
Reply
#3
All of us will have something to regret, whether or not we use any decision making technique
Reply
#4
Good post +1
Reply


Forum Jump:






Users browsing this thread: 1 Guest(s)