31 Dec How To Make Right Decisions
Supposedly you know the situation when you have to make decision, but you don’t know which one would be the best for you. In this article, you will find two methods for making decision-making process easier.
The first method is called the worst case scenario. In this method you should answer 3 questions given below:
- What is the worst case scenario?
- What is the probability of that situation?
- Is that risk acceptable?
The second method is the decision-making matrix. It allows you to make a decision when you have two or more options to choose from. As an example let’s see the following matrix created for the issue “full-time job vs. your own business”.
- In the first step we create columns: Factors and all the possibilities we have.
- Then we write down all the factors which can help us to make decision in Factors column (the more the better).
- Assess how important every factor is for the decision-making process and write the mark in brackets (numbers 1 to 10). If place of residence is extremely important, then it has mark 10.
- Go to the columns with all the possibilities. In the particular rows assess the importance of every factor for every potential choice. Full-time workers have fixed time of work, they cannot make breaks when they would like to, so there is only 5. People who have their own businesses can make breaks and have days off when they want to. Thereby this option has mark 9.
- Earnings of full-time workers are usually lower than in your own business, so there are marks 6 and 10.
- Full-time workers work usually about 8 hrs a day, 5 days per week. Businessmen usually work 12 or more hours a day, 6-7 days in a week. Hence there are 9 and 2 marks.
- Full-time workers have responsibilities during their 8-hours a day work, businessmen are 100% responsible for their work and usually they have much more tasks to do than full-time workers. There are 9 and 3 in particular columns.
- Full-time workers must live near their company office building. Entrepreneurs can project their businesses in order to live when they want to. There are marks 5 and 10.
- In the end we multiply marks of factors by corresponding marks in particular columns for every possible choice and write down scores in brackets.
- The last step is to add up all the values in brackets in particular columns for every possible choice. The highest score is the option we should choose from all the possibilities.