Feb 09 2009
Techniques you can use for simplifying decisions
Most Managers find ways to cope with uncertainty by adopting strategies to simplify complex situations so that they can make decisions quickly and effectively.
Here are Techniques you can use for simplifying decisions:
1. applying rules of thumb: using a simplifying measure (e.g. mortgage lenders assuming that consumers should spend no more than a particular percentage of their income on mortgage payments);
2. reasoning by analogy: drawing from past experiences when faced with a complex problem;
3. reformulation: reframing one complex problem as a sequence of smaller problems enabling small wins to be achieved in order to build up momentum towards achieving the objective of solving the overall problem.
4. imitation: emulating the strategies and practices of other highly successful organisations;
It is good developing a simplifying approach when you are deciding how to handle a mass of analysis. However, too much focus on simplicity does have its own dangers, where interesting and novel solutions are often ignored. Decision maker should welcome and work with complexity to try to find new solutions and move on from predictable and unattractive solutions.
