BETTER DECISION MAKING LEADS TO MORE MONEY

Decisions Decisions

Clearly learning to make better decisions can lead to more wealth. But what is a better decision? One that is likely to achieve a goal or less likely to violate your values? Can you have both?


Factors preventing effective decision making:

Not enough information / relevant choices

Too much information / relevant or irrelevant choices

Too many people involved in the decision making

What will others think of your decision?

What would others from the past think?

Is the decision actually yours to make?

Resistance (internal or external)

Do the choices available violate your criteria / values?

Will the decision violate somebody else's criteria / values?

Who wants to maintain the status quo or move in a different direction?

Emotional attachments

Decisions that effect the biggest change can be uncomfortable or even painful for someone involved

No emotional attachment 

A personal stake provides the energy required to make or resist a change

Golden key and puzzle pieces - 3d render illustration

The key to better decisions:
Goal Setting
Knowing Your Values
Conflict Resolution


Goal Setting

Locke and Latham’s principles, the well formed outcome and SMART goals:

SMART

S - Specific
M - Measurable
A - Attainable
R - Rewarding
T - Timetable

smartgoals

Wellformed Outcome:

  1. stated in positives
    • what do you want or have but want more of?
    • not what you don't want or want to avoid
  2. within the individuals control
    • is this within your control?
    • does it require someone else to change or depend on another’s behavior?
  3. ecological
    • how will acquiring this outcome affect your life, friends, family, career or status?
    • how are you benefiting from not acquiring this outcome?
  4. measurable and testable
    • how will you know when you have acquired this outcome
  5.  contextualized
    • when, where and with whom do you want this outcome?

Locke and Latham’s five principles:

  1. Clarity - state clear goals
  2. Challenge - challenging goals increase motivation
  3. Commitment - commitment from your team as well as yourself.People are more committed to goals they help set
  4. Feedback - provides an opportunity to confirm progress or make necessary adjustments
  5. Task Complexity - adjust task if they become too overwhelming or complex


 


Values2Knowing Your Values

It’s important to know your values, what is important and how they rank, in order to work with them. For example imagine that you value going outside as well as being warm. Now consider that it is 20 degrees outside. In order to make this decision, one value must outrank the other. Otherwise you will have a conflict and not know what to do.


Consider a mental exercise:
Imagine that have joined a group.

What would have to happen or exist to get you to leave the group? Let’s call the answer criteria A

Assume that criteria A exist. What would have to happen or exist for you to want to stay even with criterial A. Let’s call this criteria B

Assume criteria B exists. What would have to happen or exist for you to leave? Let’s call this C

Assume criteria C exists. What would have to happen or exist for you to stay?

How would you rank these criteria. What would it look like to you?


Now we are ready for an assignment:
Pick a goal. Use the well formed outcome.

 

What is your ideal scenario? Do you know what your ultimate purpose might be?

Do you have a sense of some role you have to play? What is your mission?
What is important about your goal?
What skills or abilities do you have or need to acquire in order to achieve the goal?
Do you have an idea of what actions you need to take? Do you need more information?
What are those actions?
Where, when and with whom will this take place?

Do this! It’s important. If you get stuck or bored or overwhelmed or whatever, that’s important too.
There is no such thing as failure only feedback. If change was easy, everyone would be a billionaire.