We’ve all made bad decisions from time to time. Even when we think we’re being objective, there are many biases that hinder our ability to make the right call. In this presentation we’ll help you recognize and overcome common biases that cloud decision making. We’ll also show you how to involve the right people and use a systematic process to think fast without compromising decision quality.

1. Grow Your Bottom Line One Decision At A Time
Shortcuts for Making Better
Business Decisions

2. Today’s Presenter
Rick Lepsinger, President, OnPoint
Consulting
rlepsinger@OnPointConsultingLLC.com
| 212.472.8081
Welcome to Our Webinar!

3. OBJECTIVES
● Understand what impacts judgment
and our ability to make good
decisions
● Apply practical techniques to
overcome the obstacles to effective
decision making
● Learn pros and cons of different
decision-making styles
● Discover how to involve the right
people and clarify decision authority

4. Quality is never an accident; it is
always the result of high intention,
sincere effort, intelligent direction
and skillful execution; it
represents the wise choice of
many alternatives...
- John Ruskin, author

5. What impacts our
judgment and the quality
of our decisions?

6. How our brain
responds to and
processes information

7. Automatic reactions
Actions that kick in when a situation seems familiar
and requires little or no conscious thought.
(Ex.; following a procedure when responding to a common customer
complaint without regard for the specifics of that situation)

8. Voluntary Processing
Our conscious and deliberate information manager
that is slower to engage.
(Ex., You see this month’s sales are down; rather than immediately
increasing the marketing budget, you take time to examine the cause of
the decline)

9. Emotion
Behavior in response to a particular situation, such as
feeling threatened.
(Ex., Deciding to discount prices solely out of fear of being unable to keep
up with competitors)

10. Reason
A more rational approach that takes a long-term view
and considers the consequences of our actions.
(Ex., Analyzing market conditions and developing a long-term plan that
anticipates potential problems and actions to address them.)

11. 5 Common Biases That
Hinder Decision Making

12. 1.Staying in Our Comfort Zone
Choosing solutions we are familiar with and selecting the
things that are brought to mind more frequently.

13. 2. Jumping to Conclusions
Acting on assumptions before we have
enough information

14. 3. Anchoring
Relying too much on the first piece of information we get
about a situation and letting it shape our overall perspective

15. 4. Confirmation
Only seeking evidence that supports our
assumption, preference or our intuition

16. 5. Investing in a Failing Course of Action
Refusing to give up on something that isn’t working out of a
desire to save face or prove we were right

17. How to overcome the
obstacles to effective
decision making

18. Use a Systematic Process

19. Develop a Decision Criteria
● Focus on a few criteria that answer the question “what does
the best alternative look like?”
● These criteria outline the characteristics of a high quality
decision
● Could include measures of quality and quantity, time to
implement, cost targets or constraints, and expected
performance.

20. Example of decision criteria
● Able to launch in 90 days
● Costs less than $500,000 to develop
● Help regain 5% lost market share within 3 months
● Improves the perception of product quality, and
● Does not require an increase in cost to the consumer

21. Develop a Decision Criteria
● Ensures all stakeholders have a shared picture of what the
best decision should look like and the data that is required to
make a decision
● The criteria guides your search and lets you know when you
have enough information.

22. More Data Is Not Always Better
● Common belief - the more information you have the better the
decisions you’ll make.
● Experienced horse handicappers were presented with datasets of
variable sizes. They were asked to predict the outcomes based
on variables such as
○ The weight to be carried
○ The percentage of races in which the horse finished first, second or third during
the previous year
○ The jockey’s record
○ The number of days since the horse’s last race

23. More Data Is Not Always Better

25. Involve The Right People

26. 1.Make the Decision Yourself
One person makes the call and informs others of their choice
+ The need for action is urgent
+ All options are equally acceptable
+ The person making the decision has all the information
- Team is not consulted and may not feel invested
- Decision quality may suffer if the leader doesn’t have the
right information

27. 2. Consultative
Team has opportunity to offer input, though the leader
ultimately makes the final decision
+ Team members feel invested
+ Decision quality is more likely to be higher
- May take more time
- Innovation may suffer if the leader surround themselves
with people who tend to agree

28. 3. Consensus
Decision is discussed by the group and majority rules.
+ Generates high levels of buy-in
+ Can improve decision quality
- Can be time-consuming
- Difficult to reach consensus if goals are not shared

29. Choosing the Right
Decision Style
● Decision quality
● Decision acceptance
● Time

30. Which Style Should
You Use?
Ask yourself the following questions...

31. How important is decision quality?
Does the decision have major consequences for the
organization?

32. Do I have the information to make
the decision without the input of
colleagues and/or direct reports?
(If not, making the decision yourself will not assure quality.)

33. How important is
decision acceptance?
(Does the leader depend on others to
implement the decision?)

34. Is acceptance assured?
(If the leader does not have the support and commitment of
others, making the decision yourself won’t work.)

35. Do stakeholders
share my objectives?
(If not, making the decision yourself won’t work.)

36. How quickly is a decision needed?
(On urgent matters, there may not be time for a consultative or
consensus approach.)

37. Clarify roles and
decision authority

38. Who’s In Charge?
One of the biggest challenges in matrix organizations
is clarifying decision authority.

39. When there isn’t a clear hierarchy, the roles and
decision authority within a team representing
different departments or regions are often
blurred.

40. The RACI Matrix
Helps clarify who to involve and how to
involve them in decision making.

41. R-Responsible
Who is in charge of ensuring the decision or task is
carried out? This single point of contact (project
manager, team leader, etc.) should identify who
should be involved, communicate with them and
obtain the necessary information and resources

42. A-Accountable
Who has ownership of the decision or project? Who
will take the blame if something goes wrong?
If this isn’t the responsible person, he/she needs
to work closely with them and oversee decision
making.

43. C-Consulted
Who can provide important information? Whose
support is necessary for implementation?
This person should be consulted early in the
process and give feedback prior to the final
decision.

44. I-Informed
Whose work will be impacted by the decision? Who
needs to be updated on the progress?
The responsible person should maintain ongoing
communication with this group, build support and
provide assurances.

45. Tips for Using The RACI
Matrix Well

46. Start Early.
Clarify goals, roles, responsibilities and decision
authority from the very beginning.

47. Prioritize.
Use the 80-20 rule to determine which of your
decisions will have the most impact.

48. Build Trust.
● Meet face to face when possible, especially early
in the process
● Listen; earn the right to make suggestions
● Share information
● Focus on the goals and needs of others

49. Stay committed to your decisions,
but stay flexible in your approach.
-Tony Robbins, motivational speaker

50. THANK YOU!
If you’d like to learn more about specific
training programs to enhance decision-
making, feel free to contact us.
www.OnPointConsultingLLC.com | 203.533.5128