What is the first step in the ideal decision-making process?

The decision making process is a method of gathering information, assessing alternatives, and making a final choice with the goal of making the best decision possible. In this article, we detail the step-by-step process on how to make a good decision and explain different decision making methodologies.

We make decisions every day. Take the bus to work or call a car? Chocolate or vanilla ice cream? Whole milk or two percent?

There's an entire process that goes into making those tiny decisions, and while these are simple, easy choices, how do we end up making more challenging decisions? 

At work, decisions aren't as simple as choosing what kind of milk you want in your latte in the morning. That’s why understanding the decision making process is so important. 

What is the decision making process?

The decision making process is the method of gathering information, assessing alternatives, and, ultimately, making a final choice. 

The following seven step process is intended for challenging decisions that involve multiple stakeholders, but this process can be used for something as simple as what cereal to pour into your breakfast bowl in the morning. 

The 7 steps of the decision making process

Step 1: Identify the decision that needs to be made

When you're identifying the decision, ask yourself a few questions: 

• What is the problem that needs to be solved?

• What is the goal you plan to achieve by implementing this decision?

• How will you measure success?

These questions are all common goal setting techniques that will ultimately help you come up with possible solutions. When the problem is clearly defined, you then have more information to come up with the best decision to solve the problem.

Step 2: Gather relevant information

​Gathering information related to the decision being made is an important step to making an informed decision. Does your team have any historical data as it relates to this issue? Has anybody attempted to solve this problem before?

It's also important to look for information outside of your team or company. Effective decision making requires information from many different sources. Find external resources, whether it’s doing market research, working with a consultant, or talking with colleagues at a different company who have relevant experience. Gathering information helps your team identify different solutions to your problem.

Step 3: Identify alternative solutions

This step requires you to look for many different solutions for the problem at hand. Finding more than one possible alternative is important when it comes to business decision-making, because different stakeholders may have different needs depending on their role. For example, if a company is looking for a work management tool, the design team may have different needs than a development team. Choosing only one solution right off the bat might not be the right course of action. 

Step 4: Weigh the evidence

This is when you take all of the different solutions you’ve come up with and analyze how they would address your initial problem. Your team begins identifying the pros and cons of each option, and eliminating alternatives from those choices.

There are a few common ways your team can analyze and weigh the evidence of options:

• Pros and cons list

• SWOT analysis

• Decision matrix

Step 5: Choose among the alternatives

The next step is to make your final decision. Consider all of the information you've collected and how this decision may affect each stakeholder. 

Sometimes the right decision is not one of the alternatives, but a blend of a few different alternatives. Effective decision-making involves creative problem solving and thinking out of the box, so don't limit you or your teams to clear-cut options.

One of the key values at Asana is to reject false tradeoffs. Choosing just one decision can mean losing benefits in others. If you can, try and find options that go beyond just the alternatives presented.

Step 6: Take action

Once the final decision maker gives the green light, it's time to put the solution into action. Take the time to create an implementation plan so that your team is on the same page for next steps. Then it’s time to put your plan into action and monitor progress to determine whether or not this decision was a good one. 

Step 7: Review your decision and its impact (both good and bad)

Once you’ve made a decision, you can monitor the success metrics you outlined in step 1. This is how you determine whether or not this solution meets your team's criteria of success.

Here are a few questions to consider when reviewing your decision:

• Did it solve the problem your team identified in step 1? 

• Did this decision impact your team in a positive or negative way?

• Which stakeholders benefited from this decision? Which stakeholders were impacted negatively?

If this solution was not the best alternative, your team might benefit from using an iterative form of project management. This enables your team to quickly adapt to changes, and make the best decisions with the resources they have. 

Types of decision making models

While most decision making models revolve around the same seven steps, here are a few different methodologies to help you make a good decision.

​Rational decision making models

This type of decision making model is the most common type that you'll see. It's logical and sequential. The seven steps listed above are an example of the rational decision making model. 

When your decision has a big impact on your team and you need to maximize outcomes, this is the type of decision making process you should use. It requires you to consider a wide range of viewpoints with little bias so you can make the best decision possible. 

Intuitive decision making models

This type of decision making model is dictated not by information or data, but by gut instincts. This form of decision making requires previous experience and pattern recognition to form strong instincts.

This type of decision making is often made by decision makers who have a lot of experience with similar kinds of problems. They have already had proven success with the solution they're looking to implement. 

Creative decision making model

The creative decision making model involves collecting information and insights about a problem and coming up with potential ideas for a solution, similar to the rational decision making model. 

The difference here is that instead of identifying the pros and cons of each alternative, the decision maker enters a period in which they try not to actively think about the solution at all. The goal is to have their subconscious take over and lead them to the right decision, similar to the intuitive decision making model. 

This situation is best used in an iterative process so that teams can test their solutions and adapt as things change.

Track key decisions with a work management tool

Tracking key decisions can be challenging when not documented correctly. Learn more about how a work management tool like Asana can help your team track key decisions, collaborate with teammates, and stay on top of progress all in one place.

In order to continue enjoying our site, we ask that you confirm your identity as a human. Thank you very much for your cooperation.

Strong decision-making skills are essential for newly appointed and seasoned managers alike. The ability to navigate complex challenges and develop a plan can not only lead to more effective team management but drive key organizational change initiatives and objectives.

Despite decision-making’s importance in business, a recent survey by McKinsey shows that just 20 percent of professionals believe their organizations excel at it. Survey respondents noted that, on average, they spend 37 percent of their time making decisions, but more than half of it’s used ineffectively.

For managers, it’s critical to ensure effective decisions are made for their organizations’ success. Every managerial decision must be accompanied by research and data, collaboration, and alternative solutions.

Few managers, however, reap the benefits of making more thoughtful choices due to undeveloped decision-making models.

Why Is Making Decisions Important?

According to Harvard Business School Professor Leonard Schlesinger, who’s featured in the online course Management Essentials, most managers view decision-making as a single event, rather than a process. This can lead to managers overestimating their abilities to influence outcomes and closing themselves off from alternative perspectives and diverse ways of thinking.

“The reality is, it’s very rare to find a single point in time where ‘a decision of significance’ is made and things go forward from there,” Schlesinger says. “Embedded in this work is the notion that what we’re really talking about is a process. The role of the manager in managing that process is actually quite straightforward, yet, at the same time, extraordinarily complex.”

If you want to further your business knowledge and be more effective in your role, it’s critical to become a strong decision-maker. Here are eight steps in the decision-making process you can employ to become a better manager and have greater influence in your organization.

Steps in the Decision-Making Process

1. Frame the Decision

Pinpointing the issue is the first step to initiating the decision-making process. Ensure the problem is carefully analyzed, clearly defined, and everyone involved in the outcome agrees on what needs to be solved. This process will give your team peace of mind that each key decision is based on extensive research and collaboration.

Schlesinger says this initial action can be challenging for managers because an ill-formed question can result in a process that produces the wrong decision.

“The real issue for a manager at the start is to make sure they are actively working to shape the question they’re trying to address and the decision they’re trying to have made,” Schlesinger says. “That’s not a trivial task.”

2. Structure Your Team

Managers must assemble the right people to navigate the decision-making process.

“The issue of who’s going to be involved in helping you to make that decision is one of the most central issues you face,” Schlesinger says. “The primary issue being the membership of the collection of individuals or group that you’re bringing together to make that decision.”

As you build your team, Schlesinger advises mapping the technical, political, and cultural underpinnings of the decision that needs to be made and gathering colleagues with an array of skills and experience levels to help you make an informed decision. .

“You want some newcomers who are going to provide a different point of view and perspective on the issue you’re dealing with,” he says. “At the same time, you want people who have profound knowledge and deep experience with the problem.”

It’s key to assign decision tasks to colleagues and invite perspectives that uncover blindspots or roadblocks. Schlesinger notes that attempting to arrive at the “right answer” without a team that will ultimately support and execute it is a “recipe for failure.”

3. Consider the Timeframe

This act of mapping the issue’s intricacies should involve taking the decision’s urgency into account. Business problems with significant implications sometimes allow for lengthier decision-making processes, whereas other challenges call for more accelerated timelines.

“As a manager, you need to shape the decision-making process in terms of both of those dimensions: The criticality of what it is you’re trying to decide and, more importantly, how quickly it needs to get decided given the urgency,” Schlesinger says. “The final question is, how much time you’re going to provide yourself and the group to invest in both problem diagnosis and decisions.”

4. Establish Your Approach

In the early stages of the decision-making process, it’s critical to set ground rules and assign roles to team members. Doing so can help ensure everyone understands how they contribute to problem-solving and agrees on how a solution will be reached.

“It’s really important to get clarity upfront around the roles people are going to play and the ways in which decisions are going to get made,” Schlesinger says. “Often, managers leave that to chance, so people self-assign themselves to roles in ways that you don’t necessarily want, and the decision-making process defers to consensus, which is likely to lead to a lower evaluation of the problem and a less creative solution.”

5. Encourage Discussion and Debate

One of the issues of leading a group that defaults to consensus is that it can shut out contrarian points of view and deter inventive problem-solving. Because of this potential pitfall, Schlesinger notes, you should designate roles that focus on poking holes in arguments and fostering debate.

“What we’re talking about is establishing a process of devil’s advocacy, either in an individual or a subgroup role,” he says. “That’s much more likely to lead to a deeper critical evaluation and generate a substantial number of alternatives.”

Schlesinger adds that this action can take time and potentially disrupt group harmony, so it’s vital for managers to guide the inner workings of the process from the outset to ensure effective collaboration and guarantee more quality decisions will be made.

“What we need to do is establish norms in the group that enable us to be open to a broader array of data and decision-making processes,” he says. “If that doesn’t happen upfront, but in the process without a conversation, it’s generally a source of consternation and some measure of frustration.”

Related: 3 Group Decision-Making Techniques for Success

6. Navigate Group Dynamics

In addition to creating a dynamic in which candor and debate are encouraged, there are other challenges you need to navigate as you manage your team throughout the decision-making process.

One is ensuring the size of the group is appropriate for the problem and allows for an efficient workflow.

“In getting all the people together that have relevant data and represent various political and cultural constituencies, each incremental member adds to the complexity of the decision-making process and the amount of time it takes to get a decision made and implemented,” Schlesinger says.

Another task, he notes, is identifying which parts of the process can be completed without face-to-face interaction.

“There’s no question that pieces of the decision-making process can be deferred to paper, email, or some app,” Schlesinger says. “But, at the end of the day, given that so much of decision-making requires high-quality human interaction, you need to defer some part of the process for ill-structured and difficult tasks to a face-to-face meeting.”

7. Ensure the Pieces Are in Place for Implementation

Throughout your team’s efforts to arrive at a decision, you must ensure you facilitate a process that encompasses:

• Shared goals that were presented upfront
• Alternative options that have been given rigorous thought and fair consideration
• Sound methods for exploring decisions’ consequences

According to Schlesinger, these components profoundly influence the quality of the solution that’s ultimately identified and the types of decisions that’ll be made in the future.

“In the general manager’s job, the quality of the decision is only one part of the equation,” he says. “All of this is oriented toward trying to make sure that once a decision is made, we have the right groupings and the right support to implement.”

8. Achieve Closure and Alignment

Achieving closure in the decision-making process requires arriving at a solution that sufficiently aligns members of your group and garners enough support to implement it.

As with the other phases of decision-making, clear communication ensures your team understands and commits to the plan.

In a video interview for the online course Management Essentials, Harvard Business School Dean Nitin Nohria says it’s essential to explain the rationale behind the decision to your employees.

“If it’s a decision that you have to make, say, ‘I know there were some of you who thought differently, but let me tell you why we went this way,’” Nohria says. “This is so the people on the other side feel heard and recognize the concerns they raised are things you’ve tried to incorporate into the decision and, as implementation proceeds, if those concerns become real, then they’ll be attended to.”

How to Improve Your Decision-Making

An in-depth understanding of the decision-making process is vital for all managers. Whether you’re an aspiring manager aiming to move up at your organization or a seasoned executive who wants to boost your job performance, honing your approach to decision-making can improve your managerial skills and equip you with the tools to advance your career.

Do you want to become a more effective decision-maker? Explore Management Essentials—one of our online leadership and management courses—to learn how you can influence the context and environment in which decisions get made.

This article was update on July 15, 2022. It was originally published on February 4, 2020.