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Decision Making
for Leaders
Wong Yew Yip
yewyip@gmail.com
Designed & Developed by : Wong Yew Yip ~ 20 August 2021
Purpose
As a Leader, to be able to
make high quality decisions
on a daily basis by applying
the right decision making
techniques and process to
support the goals of the
organization
Designed & Developed by : Wong Yew Yip ~ 20 August 2021
What is Decision Making?
 Decision Making is a choice
or judgement of what you
need to do in order to
achieve an objective
 Decision Making is
consciously choosing one
action from several possible
actions
Designed & Developed by : Wong Yew Yip ~ 20 August 2021
Why Decision Making?
 But when situations are more complicated
and have longer term impacts, decisions get
more difficult to make. People may feel:
➢ overwhelmed
➢ stressed or anxious
➢ wound up
➢ pressured
➢ confused
➢ tired
 We make hundreds of decisions every day, most of
which are straightforward and happen without us
thinking too much about them
Designed & Developed by : Wong Yew Yip ~ 20 August 2021
Why even bother to make decisions?
 The answer is that the
different alternatives and
choices you make will lead to
different consequences
 Your decisions will impact your
organization’s objectives
 Thus, you need to take care in
making those decisions
Designed & Developed by : Wong Yew Yip ~ 20 August 2021
Types of Decision Making
Programmed Decisions
 Routine, almost
automatic process
 Have made decision
many times before
 There are rules or
guidelines to follow
 Example: Deciding to
reorder office supplies
Non-Programmed Decisions
 Unusual situations that
have not been addressed
 No rules to follow since
the decision is new
 Decisions are made
based on information,
intuition, and judgment
 Example: Invest in a new
technology?
Designed & Developed by : Wong Yew Yip ~ 20 August 2021
2 Approaches to Decision Making
Analytical Decision
The problem solver or
team of problem
solvers, employ a
systematic process
to analyse a problem
and determine the
best solution
Intuitive Decision
A decision-making
process that relies on
intuition, judgement
and experience to
recognize key
elements of a
particular problem to
arrive at an
appropriate decision
Designed & Developed by : Wong Yew Yip ~ 20 August 2021
Group Decision Making Structures
Group
Decision
Making
Structures
Majority
Rule
Hierarchy
Consensus
Unanimity
No
Structure
2
5
1
3
4
Designed & Developed by : Wong Yew Yip ~ 20 August 2021
 Voting
 Splits the group into
“winners” and “losers”
 Fosters competition and
factions
 Losers often angry and no
commitment to the decision
 Encourages attacks
against opponents
 Usually fast
Majority Rule
Majority Rule
Designed & Developed by : Wong Yew Yip ~ 20 August 2021
 Chain of command
 Clear responsibility and
accountability
 Bossism
 Not representative
 Many views not heard
 Underlings don’t
understand or accept
decision
 Little commitment
 Fast - good for crisis
Hierarchy
Hierarchy
Designed & Developed by : Wong Yew Yip ~ 20 August 2021
 Explore solutions until best
one emerges
 Mutual search for solution
 Decision all can accept
 Brings conflict into open
 Minority opinions considered
 Encourage cooperation
 1 person can block decision
 Promotes commitment
 Takes time, may be frustrating
Consensus
Consensus
Designed & Developed by : Wong Yew Yip ~ 20 August 2021
Everyone completely
agrees
Good when it occurs
Full commitment
Almost impossible to
achieve with more than
two people
If achieved, usually
takes a very long time,
if achieved
Unanimity
 Unanimity
Designed & Developed by : Wong Yew Yip ~ 20 August 2021
 No rules
 No regulations
 No system
 No penalties
 Often chaotic
 “We trust each other”
 Dominated by
aggressive few
 Dissatisfaction grows
No Structure
No Structure
Designed & Developed by : Wong Yew Yip ~ 20 August 2021
10 Decision Making Mistakes
Decision
Making
Mistakes
10
7
2
5
1
6
9
8
3
4
Procrastinate
Believe it's
"Make or
Break"
Not
Systematic
Do not
Consider
Different
Perspectives
Do not involve
Stakeholders
Psychological
Bias
Being
Overconfident
Do not
consider
Consequences
Do not
Communicate
Effectively
Do not correct
a wrong
decision
Designed & Developed by : Wong Yew Yip ~ 20 August 2021
6-Step Decision Making Process
1
2
3
4
5
6
Define
issue
List
options
Gather
info
Consider
options
Make
decision
Open to
change
6 STEPS TO MAKE GREAT DECISIONS
Designed & Developed by : Wong Yew Yip ~ 20 August 2021
6-Step Decision Making Process
Use 5W1H:
 What is the problem/issue?
 Where is the problem/issue?
 Why is the decision necessary?
 How the decision change things
for the better?
 Who will it affect?
 When must decision be made?
Define the Problem/Issue
1
Designed & Developed by : Wong Yew Yip ~ 20 August 2021
6-Step Decision Making Process
List your Options
2
 List all possible options
 The more options you
consider, the more
likely you will be to not
overlook the best
solution
Designed & Developed by : Wong Yew Yip ~ 20 August 2021
6-Step Decision Making Process
Gather Information about your Options
3
 You will make better
decisions if you have
investigated
thoroughly
 You will also have
more peace of mind
as you carry out your
decision
Designed & Developed by : Wong Yew Yip ~ 20 August 2021
6-Step Decision Making Process
Consider your Options
4
 Write down the pros and cons for
each option and see how they
stack up against each other
 Try to determine both best-case
and worst-case scenarios for
each option
 See if there is some way to
combine several promising
solutions into one potent solution
Designed & Developed by : Wong Yew Yip ~ 20 August 2021
6-Step Decision Making Process
Make a Decision
5
 When you are
convinced that
you have found
the best solution,
commit to it
Designed & Developed by : Wong Yew Yip ~ 20 August 2021
6-Step Decision Making Process
Be open to change
6
 Be open to change if
circumstances
change
 Once you make a
decision and begin to
act on it, a better
option may open up
Thank You
Contact :
yewyip@gmail.com
for PowerPoint file

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Leaders Guide Decision Making

  • 1. Decision Making for Leaders Wong Yew Yip yewyip@gmail.com
  • 2. Designed & Developed by : Wong Yew Yip ~ 20 August 2021 Purpose As a Leader, to be able to make high quality decisions on a daily basis by applying the right decision making techniques and process to support the goals of the organization
  • 3. Designed & Developed by : Wong Yew Yip ~ 20 August 2021 What is Decision Making?  Decision Making is a choice or judgement of what you need to do in order to achieve an objective  Decision Making is consciously choosing one action from several possible actions
  • 4. Designed & Developed by : Wong Yew Yip ~ 20 August 2021 Why Decision Making?  But when situations are more complicated and have longer term impacts, decisions get more difficult to make. People may feel: ➢ overwhelmed ➢ stressed or anxious ➢ wound up ➢ pressured ➢ confused ➢ tired  We make hundreds of decisions every day, most of which are straightforward and happen without us thinking too much about them
  • 5. Designed & Developed by : Wong Yew Yip ~ 20 August 2021 Why even bother to make decisions?  The answer is that the different alternatives and choices you make will lead to different consequences  Your decisions will impact your organization’s objectives  Thus, you need to take care in making those decisions
  • 6. Designed & Developed by : Wong Yew Yip ~ 20 August 2021 Types of Decision Making Programmed Decisions  Routine, almost automatic process  Have made decision many times before  There are rules or guidelines to follow  Example: Deciding to reorder office supplies Non-Programmed Decisions  Unusual situations that have not been addressed  No rules to follow since the decision is new  Decisions are made based on information, intuition, and judgment  Example: Invest in a new technology?
  • 7. Designed & Developed by : Wong Yew Yip ~ 20 August 2021 2 Approaches to Decision Making Analytical Decision The problem solver or team of problem solvers, employ a systematic process to analyse a problem and determine the best solution Intuitive Decision A decision-making process that relies on intuition, judgement and experience to recognize key elements of a particular problem to arrive at an appropriate decision
  • 8. Designed & Developed by : Wong Yew Yip ~ 20 August 2021 Group Decision Making Structures Group Decision Making Structures Majority Rule Hierarchy Consensus Unanimity No Structure 2 5 1 3 4
  • 9. Designed & Developed by : Wong Yew Yip ~ 20 August 2021  Voting  Splits the group into “winners” and “losers”  Fosters competition and factions  Losers often angry and no commitment to the decision  Encourages attacks against opponents  Usually fast Majority Rule Majority Rule
  • 10. Designed & Developed by : Wong Yew Yip ~ 20 August 2021  Chain of command  Clear responsibility and accountability  Bossism  Not representative  Many views not heard  Underlings don’t understand or accept decision  Little commitment  Fast - good for crisis Hierarchy Hierarchy
  • 11. Designed & Developed by : Wong Yew Yip ~ 20 August 2021  Explore solutions until best one emerges  Mutual search for solution  Decision all can accept  Brings conflict into open  Minority opinions considered  Encourage cooperation  1 person can block decision  Promotes commitment  Takes time, may be frustrating Consensus Consensus
  • 12. Designed & Developed by : Wong Yew Yip ~ 20 August 2021 Everyone completely agrees Good when it occurs Full commitment Almost impossible to achieve with more than two people If achieved, usually takes a very long time, if achieved Unanimity  Unanimity
  • 13. Designed & Developed by : Wong Yew Yip ~ 20 August 2021  No rules  No regulations  No system  No penalties  Often chaotic  “We trust each other”  Dominated by aggressive few  Dissatisfaction grows No Structure No Structure
  • 14. Designed & Developed by : Wong Yew Yip ~ 20 August 2021 10 Decision Making Mistakes Decision Making Mistakes 10 7 2 5 1 6 9 8 3 4 Procrastinate Believe it's "Make or Break" Not Systematic Do not Consider Different Perspectives Do not involve Stakeholders Psychological Bias Being Overconfident Do not consider Consequences Do not Communicate Effectively Do not correct a wrong decision
  • 15. Designed & Developed by : Wong Yew Yip ~ 20 August 2021 6-Step Decision Making Process 1 2 3 4 5 6 Define issue List options Gather info Consider options Make decision Open to change 6 STEPS TO MAKE GREAT DECISIONS
  • 16. Designed & Developed by : Wong Yew Yip ~ 20 August 2021 6-Step Decision Making Process Use 5W1H:  What is the problem/issue?  Where is the problem/issue?  Why is the decision necessary?  How the decision change things for the better?  Who will it affect?  When must decision be made? Define the Problem/Issue 1
  • 17. Designed & Developed by : Wong Yew Yip ~ 20 August 2021 6-Step Decision Making Process List your Options 2  List all possible options  The more options you consider, the more likely you will be to not overlook the best solution
  • 18. Designed & Developed by : Wong Yew Yip ~ 20 August 2021 6-Step Decision Making Process Gather Information about your Options 3  You will make better decisions if you have investigated thoroughly  You will also have more peace of mind as you carry out your decision
  • 19. Designed & Developed by : Wong Yew Yip ~ 20 August 2021 6-Step Decision Making Process Consider your Options 4  Write down the pros and cons for each option and see how they stack up against each other  Try to determine both best-case and worst-case scenarios for each option  See if there is some way to combine several promising solutions into one potent solution
  • 20. Designed & Developed by : Wong Yew Yip ~ 20 August 2021 6-Step Decision Making Process Make a Decision 5  When you are convinced that you have found the best solution, commit to it
  • 21. Designed & Developed by : Wong Yew Yip ~ 20 August 2021 6-Step Decision Making Process Be open to change 6  Be open to change if circumstances change  Once you make a decision and begin to act on it, a better option may open up