How decisions are made
Decision making
Ever thought about how decisions are made and why some get more focus than others?
Decisions are heavily impacted by
Bounded rationality.
A human cannot consider all the problems they face and all the potential solutions at the same time. Consequently, attention is focused on a tiny proportion of the issues, those which have the most pressing impact in terms of risk or reward. These are the ones that make their way to the top of the agenda.
What is it?
Bounded rationality is the idea that rationality is limited, when individuals make decisions, these are based on several key criteria.
- The impact of the problem
- The risk faced in doing nothing
- The manageability of the risk – personally and socially
- The difficulty of actually making a decision,
- The current experience of the individual who is making the decision
- The cognitive limitations of the individuals thought process,
- The time available to make the decision.
In most instances the decision-makers acts as “placater”, seeking a satisfactory solution rather than the best or optimal one.
To get a decision made
These are the items you need in your story,
Outline the problem, the risk of doing nothing and the personal and social impact if the wrong decision or no decision is taken
Make the decision easy by showing
In simple terms – relevant to the experience and cognitive ability of the customer… How your solution will resolve the problem, mitigate their risk as well as being quick to implement and efficacious
