1. STEPS IN DECISION MAKING -
THE PRICE PROCESS
Whatever decision you make, it comes with a cost – you spend your time,
energy, resources, talents, concentration, thoughts, and actions into making
a good decision that will have a high probability of leading to good
consequences. This is likely to make you “feel good” (anticipated reward).
In other words, you adopt the PRICE decision-making process, invest in the
process and that raises the probability of a favourable outcome.
Here is the 5-step process you can follow in making a wise decision
about a possible action:
IDENTIFY THE PURPOSE OF THE ACTION
Ask: “Why do I want to do it?” or “Why don’t I want to do it?”
IDENTIFY THE RISKS, POSSIBLE CONSEQUENCES AND
PROBABILITIES
Ask: “What are all the possible (realistic) consequences?” “What
are their probabilities?” And hence, “what are the risks?”
ASSESS THE RELIABILITY OF YOUR INFORMATION
Ask: “Is my information reliable?”
CONSIDER COMPROMISES, AND CREATE ALTERNATIVES
Ask: “How else could I use my time, energy, resources, talents
and opportunities?”
ENJOY THE FEELING OF HAVING DECIDED WELL
Grade 7 | Unit 7.2 | Page 8
Unit 7.2
Transparency 2