Decision Making Process Research
Research of over one thousand major business decisions over five years by behavioral economists Dan Lovallo and Olivier Sibony looked at how decisions were made (An Effective Decision Making Process) and the results (Desirable Decision Making Outcomes).
The decisions were not trivial; they focused on high stakes decisions such as new product launches, company restructurings, and market expansions.
They found that while a thorough current state analysis is important, the decision making process itself was six times more important to successful decision making outcomes.
Why such an impact?
Because, similar to thoughtfully designed project post mortems, they found that an unbiased and effective decision making process (if transparently followed) highlights and mitigates the most common team decision making mistakes.
If you would like your teams to make better decisions, this article is for you.
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