Making the right decision can be challenging at any time. And decisions during times of change can be even more difficult. While we understand the difference between a marathon and a sprint, those job advertisements that require candidates "must be flexible" or "must be comfortable dealing with ambiguity" are already spelling out how difficult the organisation finds it to make decisions. There are effective strategies to help reduce uncertainty to the point where a clear decision is possible. Here are some key insights for decision-making in dynamic environments.
Why Decision Making is Challenging
Making the right decision can be challenging at the best of times. If decisions are difficult it might be because they involve multiple variables, trade-offs, and potential consequences. The more complex a situation, the harder it is to determine the optimal choice.
We may have incomplete information or be faced with unpredictable outcomes. And during times of change uncertainty increases, raising the stakes of making the wrong decision. Our emotions can then come into play because fear, stress, or excitement can cloud judgment and emotional biases may lead us away from rational thinking.
Our brains use shortcuts to process information quickly. However, when the situation is complex, and we're feeling stressed, the shortcuts our brain uses may be more targeted to protecting our emotions, than to making the most rational decision from the known facts. In order to deal with stress faster, confirmation bias can cause us to seek information that confirms our beliefs; or an anchoring bias lead us to rely too heavily on initial information. Biases affect decision quality.
We can face all kinds of pressures during decision making. The fear of regret about making a mistake can become paralysing and we may delay decisions or avoid them altogether. Or pressures from social norms, peer influence, and expectations can impact our choices. The fear of judgment or desire for approval can sway our decisions.
When we're dealing with other cognitive loads like stress, worry or fear, our clear thinking resources can become limited. Decision fatigue can occur when we’ve already made too many choices, meaning the next decisions may decline in quality. During times of change, decision fatigue can intensify because our cognitive load can become even more burdened.
Why Change Makes it Harder
Change can make decision-making more challenging because uncertainty increases. Change disrupts our familiar routines and introduces unpredictability. We face new situations, information gaps, and unknown outcomes. Coping with change requires numerous decisions—big and small. The uncertainty of change can lead to decision paralysis while the increased load on our cognitive resources can create fatigue.
When we encounter change, our brains work harder to process information. We must adapt, learn, and evaluate options. This can overwhelm our decision-making capacity and trigger emotions such as anxiety, fear, or excitement. These emotions influence our choices. Fear of making the wrong decision during change or missing out on a bright future can cloud our judgment.
Humans tend to avoid losses more than they seek gains. During change, we perceive potential losses (e.g., stability, comfort) more acutely; and this bias affects our decisions.
External pressures are stronger during change. Change forces us to adapt quickly. We may feel pressured to make decisions promptly, even when we feel we lack sufficient information. During change, we seek cues from others. Social norms, peer opinions, and external expectations may also impact our decisions.
Acknowledging these challenges is the first step. Seeking support, breaking decisions into smaller parts, and focussing on learning from both successes and mistakes can lower the stakes of getting it wrong; thereby allowing us to 'ease up' on ourselves. Removing, or reducing, self-judgment can itself create immediate relief and enhance our ability to think clearly.
How to Make Decisions During Times of Change
No decision is entirely risk-free. Where the outcome of a decision doesn't matter, you're probably dealing with a choice. For example, if I ask whether you want coffee or tea - you just need to make a choice, the outcome doesn't matter. However if you were to procrastinate on making the choice due to overwhelm, you might hold up the catering queue or create an unintentional roadblock for the processes of others.
When making a decision, the outcomes might be a lot more serious. It's important to acknowledge that it can be challenging to get it right. Seek advice and focus on learning. While it's essential to have quality input, it is also important to have a diversity of input. If you've only listened to two opinions on the decision, ask for a few more.
Here are some key steps along the way to clear decisions during change:
Embrace Discomfort and Learning
Recognise that discomfort is a natural part of the learning process. Shift from a “know it all” mindset (fixed mindset) to a “learn it all” mindset (growth mindset).
Understand that you don’t need to have all the answers and that during change it is unlikely that you will. Focus instead on continuous learning and adaptation. Try making a small decision first to test the waters and enable course correction with subsequent decisions.
Involve Stakeholders and Encourage Debate
You may need to reject hierarchical decision-making models to involve diverse perspectives and encourage debate.
Clarify the decisions to be made, identify decision-makers, and ensure relevant stakeholders and experts have a voice.
Create Checklists and Financial Plans
Write things down.
Use checklists for tasks that need to be done or pieces of information you need to seek. This helps you stay organised, focussed and reduces stress.
Because money is very often an input into decision-making - or a constraint upon it - create a financial plan to mitigate financial stress during change.
Seek Professional Guidance
Consult change management, career planning or financial professionals to align your goals with practical steps.
Discuss scenarios and create crisis, business continuity or emergency plans. This can reduce cognitive burden by imagining the 'worst case scenario' and having a plan in place should it occur.
Make Conscious Choices
Reflect on what aspects of your life or business you want to change, and why. Be intentional about your decisions.
Clarify whether the matter you're facing is a decision or a simple choice by examining the outcomes and consequences.
Remember that if the worst case scenario is possible, then it's also possible that everything will go perfectly; and the reality is more likely to be somewhere in between. Adaptability and a growth mindset are essential during times of change. By embracing discomfort, involving a diversity of opinions, and clearing your cognitive load, you can reduce uncertainty and make more informed decisions during change.
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