Personal Decision-making

You can understand the decision process best when you apply it. Sometimes, it is hard to concentrate on HOW to make the decision with all the complex , impossible details of WHAT the decision has to cover.

We strongly suggest that you take some time to practice applying the decision process so that you can get the hang of the process and can apply it automatically in the larger processes.

Work on a personal decision--one that you really DO need to make--so that you can lay out a rational path.

Note: You can click on the name of the step to get more information about that step in the process.

page contents

Groundwork

Step 1: Needs

Step 2: Goals

Step 3: Resources

Step 4: Options

Step 5: Workable

Step 6: Alternatives

Step 7: Best fit

Step 8: Select

Step 9: Do it

Step 10: Check back

Go On

Groundwork

TIP: Make the question as broad as you can so you have more ways to solve it.

Questions		Example:
Problem: What is the problem you want to solve?		Jim's daughter, Jane, is 16. She just got her license and wants a BMW. Jim says, hold it right there. The real question here is: How do we solve your transportation needs?
Decisionmakers: Who are the decisionmakers? Who will influence the decision? How?		If it is all Jane's money (insurance, car, etc.) then Jane will be the main decisionmaker. Jim still holds veto rights. If it is Jim's money or insurance, Jim will decide.
Participants: Who is involved? Why? Who will be hurt if they are not consulted?		Other family members, like Jane's brother John, might want to be involved. He is 14 and will want a car, too.

Step 1, Need

TIP: Think about physical, financial, emotional, spiritual needs.

Wants, Desires, Needs Who wants what? What are the needs?

Jane: Transportation: Go to Latin at another high school 10 miles away, go to part time job 5 miles away, go skiing on weekends Look cool--image, prestige, self-esteem Be independant--not have to ask for rides Learn about responsibility Financial: Save money for college, class trip to Washington, DC. Jim Financial: Insurance, save for retirement, two kids in college, house, travel Safety: Ensure that Jane gets to places she needs to safely Transportation: Get to work 2 miles away, go to events downtown, etc.

Step 2, Objective

TIP: Ask yourself where you want to be in 5 or 10 years. How do these objectives fit into the overall plan?

Goals, Objectives What needs will we focus on? What do we want the solution accomplish? What will this solution do in 5 years? in ten?

Jane: Get into a good college (grades, classes, money, etc.) Have independant transportation Jim: Have enough money for all financial needs Ensure safe transportation for both Jim and Jane

Step 3, Resources

TIP: This step defines the playing field--where are the boundaries?

What you have to work with What resources do we have to solve the problem? What don't we have? What are the limits?

Jane: Job ($100 a week) Drivers license Drivers education course Good grades Friends who drive and have cars Some savings ($400) Jim: Insurance (property, liability, umbrella policy) Good, reliable car Job Limits: Spend no more than Jane's savings and earnings this year. Get Jane to school by 7:30, Latin by 3, work by 4:30 Jim works from 7:00 to 4:00 Denver's climate is unpredictable--snow, ice, etc.

Step 4, Options

TIP: Go WILD! Have some fun.

What are your options? What can you do? What would you like to do? What are your wildest dreams?

Get a BMW Hire a chauffeur Take taxis Get an elephant Get a good used car Buy a car on credit Lease a car Pay for a car outright and save interest costs Get a beat up pick up truck Get a good mountain bike Use the bus Develop a carpool Get a motorcycle Walk--get in shape Reduce transportation needs--Find another place to take Latin and find another job that is closer Jim--work at home Use Jim's car for both Jane and Jim--coordinate schedules Jane--take shop and build a car from parts

Step 5, Screening Criteria

TIP: Figure out what won't work so you can develop a range of alternatives that will work.

Train wrecks, fatal flaws, things that blow up What won't work? Why? At what point won't it work? These items are your screening criteria.		($) Total spending limit: $1,000 initial investment and $100 monthly maintenance (Because there are other financial needs, and this is what can be spared from the budget to still save money for college, retirement, etc.) (Go) Have to get Jane to work and school, have to get Jim to work (These are the minimum transportation needs) (Work) Have to be reliable-- work in all weathers--snow, ice, heat. (Time) Need to have something in place by next month.
Apply the screening criteria to see which options still work. Note which options are eliminated--and why.		Get a BMW ($) Hire a chauffeur ($) Take taxis ($) Get an elephant ($, work) Get a good used car Buy a car on credit Lease a car Pay for a car outright and save interest costs Get a beat up pick up truck Get a good mountain bike (work) Use the bus (schedules don't mesh. Bus does not go to Jane's Latin) Develop a carpool Get a motorcycle (work, safety) Walk--get in shape (work--can't walk in blizzards) Reduce transportation needs--Find another place to take Latin and find another job that is closer Jim--work at home Use Jim's car for both Jane and Jim--coordinate schedules Jane--take shop and build a car from parts (time)

Step 6, Alternatives

TIP: If you have a complicated question, categorize all of your options (location, action, people) so that you can choose from each category to get a complete alternative.

Combinations of options that will work and no action to compare with.   What options can we combine to meet the goals? Always include a no-action alternative to show WHY you need to act, and to measure the other action alternatives against. You may come up with other options and refine alternatives at this point. Just run the new ideas through the screening criteria to make sure they work.

No action.--Jim would keep the car. Jane would not be able to get to Latin or her job. Get a car--Get a used car on credit. Pay as much down as possible to lower the overall cost and monthly payments. Make sure the car is reliable and cheap. Use Jim's car--Jane will get up early, drive Jim to work, go to Latin, pick Jim up from work. Jim will drive Jane to her job and pick her up. Jim and Jane will develop a carpool and contacts in case of emergencies. Lease a car--Jane will have to get another job so she can afford to lease a car.

Step 7, Evaluation

TIP: Remember, numbers in matrix tables are NOT magic! They simply show relative strengths and weaknesses.

Priorities What do you need to consider so that an alternative best fits your situation? What will drive the decision? What is important to you?		Money--the more money available for other things like college, retirement, etc. the better. Reliability--the more we are sure we will get where we need to be, the better. Image--the more self-esteem and prestige, the better
The evaluation factors are NOT all equal. Some carry more weight in the decision than others. You can assign a weight to the factors (on a scale of 1 to 10, 10 being the absolute highest important thing in your life and 1 being couldn't care less). You can then look at how much each alternative weighs on this scale for all actions. This is called a matrix table. Matrix tables can help map out what is important to you as you make the decision. Multiply the numbers on the column (importance) by the numbers in each row (function) then add for totals. Then you can see the strengths and weaknesses in each alternative. (What would happen in this example if image were more important than money?). Strengths are the first number, subtotals (weights times strength) are underneath. Example: Money 7 Reliability 8 Image 3 Totals No action Not expensive 10 70 (7 *10) Doesn't work 0 0 No image 0 0 70 Get a car Costs money, but is an investment 5 35 Works well 8 64 ok image 6 18 117 Use Jim's car Not expensive 10 70 Works ok 6 48 poor image 4 12 130 Lease a car Costs money 1 7 Works well 9 72 good image 8 24 103

Step 8, Selection

TIP: Talk with everyone who will be involved in the decision to ensure they know WHY you decided what you did.

Decision The people identified in Groundwork (above) look at all the tradeoffs and select what best meets the needs and objectives at the moment. Then they set up a plan to ensure this works--and to revisit it later.

Jim and Jane have looked at the alternatives and decide to share Jim's car for this year. This will allow Jane to save money for next year, when they can look at their resources and go through the decision process again.

Step 9, Implement

TIP: Daytimers and to do lists help keep track.

Do it. You may need to set up a step-by-step plan to make the decision reality. What do you need to do today? What questions do you need to answer? What other decisions will you have to make?

Jim and Jane will have to work out "emergency plans"--what happens if the car breaks down, etc. Jim will work out a carpool arrangement with Carol, who lives nearby and has the same work hours. Jane will ask her friend, Candice, to take Latin with her. Maybe she can work out a car pool arrangement with Candice's mother.

Step 10, Monitor and Follow up

TIP: Set aside regular times to check back.

Reality check Is the solution working? Why or why not? What can we do to improve it, if we need to? What has changed? What do we need to do about those changes?

At times, Jim has meetings which make it impossible to leave by 4. To help solve this, Jane got a part time job near Jim's job at the Federal Center, so she can park the car in the Federal Center's parking lot and walk to work. Then Jim can pick her up when she finishes work.

Go On

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