How Decision-Making is Like Driving a Vehicle
We all make decisions in our personal lives on a daily basis. These include simple decisions such as the pair of shoes to put on, the choice of milk to add to our coffee, or the movie to watch with our family. And then there are bigger decisions such as the careers we want to pursue, or who we want to spend the rest of our life with.
Similarly, there are decisions to be made at work: from the choice of room we want to reserve for your next meeting, to who we want to promote on our team, or who should be let go. How decisions are made is also a great reflection of the overall culture of the organization.
A recent Oracle study revealed that 85% of people say the inability to make decisions negatively impacts their quality of life.
Decision-making has recently drawn a lot of (negative?) attention, and in my experience, it is largely because it is not well understood. Many leaders find decision-making a daunting puzzle that is difficult to solve.
In this post, I will break down what decision-making really is, explain it with the help of an analogy, and discuss key lessons while doing so.
The Components of Decision-Making
When you make a decision you need to consider a number of factors and players:
What is the decision that needs to be made?
It could be a business decision about moving forward with an M&A transaction. Or it could be a technical decision about the choice of technology to use in a new project. Or it could be a human resources decision about what type of hybrid working model to adopt for the organization.
Who owns the decision?
Every decision needs an owner. The owner is responsible for moving the decision-making process forward, involving the right stakeholders, getting the required buy-in, and ensuring no hurdles. The owner is also responsible for communicating the decision and building awareness.
What are the possible outcomes of the decision?
Just like in our personal lives, every decision at work can have multiple outcomes depending on a variety of factors. An M&A decision could result in a buy, no-buy, or partnership. A technology decision could result in choosing one of 5 different options.
Who are the stakeholders involved in this decision?
The decision-owner needs to work with others in order to move the decision forward. The stakeholders could include sponsors (those funding the decision), collaborators (those who the decision owner will consult with during the process), and those who will be impacted by the decision and should be kept informed.
What factors are involved in making the decision?
A range of factors play a role when making a decision, including complexity, ambiguity, risk, and time sensitivity. Some decisions are straightforward and risk-free, while others are more complicated and have greater risks involved. Some decisions are time-sensitive and need to be taken sooner to remain relevant, while others may have more flexibility.
What methods or approaches are available to make the decision?
Given the combination of factors discussed above, every decision may have a unique approach that works best for making that decision. For simple decisions, a 15-minute meeting may suffice, while for others it could take months of research, analysis, and negotiation. Either way, there is always an approach or path that takes a decision from where it started to the final outcome.
How Decision-Making is like Driving
Now, let me draw the analogy between making a decision and driving.
Your vehicle is the decision that needs to be made, and the driver is the decision owner
Just like decisions, every vehicle is unique and brings its own characteristics: A bicycle is simple and cost-effective, but only useful for short distances. A motorbike is faster, and lightweight, but risky to drive on longer routes. A sports car is fast but has limited capacity. A bus or lorry can carry much more but will be slow and limited in the routes it can take.
Every vehicle needs a driver (*), just like every decision needs an owner. The driver should be someone who is familiar and experienced with the vehicle, the route, the terrain, and the overall conditions. They should know when to slow down, when to change direction, and when to take a stop. Similarly, a decision owner should be familiar with the subject and should be able to steer the decision-making process forward. A driver is also ultimately accountable for the success of the journey, similar to the decision-owner.
(*) You may ask: what about autonomous or driverless vehicles? While those don’t have ‘real’ drivers, they do have an AI engine that does the same job as a driver. Similarly, decisions can also be powered by an AI system that has the required data and intelligence needed.
The passengers are the stakeholders
Every decision has stakeholders. Some stakeholders are collaborators who hold knowledge and/or stake in the decision. They would actively contribute with their ideas, and data and help the decision-owner as they move forward. And then there would be other stakeholders who are impacted by the decision, and who would like to be kept informed.
All these stakeholders are like the passengers in the vehicle, and they would be part of the journey. Some journeys need more passengers, but that would slow down the journey. Similarly, some decisions may move slower because they have a larger number of stakeholders involved. The choice of passengers (stakeholders) can also change the direction of the vehicle (decision).
The destination is the decision outcome
You may not know the final destination (did I say Final Destination?) when you start, but you will end up at some place eventually. You may have to stop over along the way to take rest breaks or to wear off an impending hailstorm. You may take 5 minutes, or 5 months to reach your destination. But you will reach there eventually.
Similarly, when you start with the decision-making process you don’t know what the final outcome will be. But you know that you will get somewhere.
The road network and routes that lead to your destination are the decision approaches
As you drive away, you have a bunch of options to choose from — you may choose to use the freeway, the street route, or even a lesser-known hiking trail. On the freeway, you may choose to drive on the fast lane or take the slower one. Some routes are faster, while others are safer, while others may offer pleasant views. But they are all designed to help you reach your destination.
In some situations, you may need to slow down (bad weather), or even change your route mid-way (there is a pileup ahead), just like you would when you learn new information or hurdles when making decisions.
The map, fuel stops, and traffic rules form the decision framework
You will typically need a navigation system (such as Google Maps) to help to find your way. You may need to stop and refuel to continue your journey. And you need to follow the “rules of the road” when driving (speed limits, lane driving, wearing seat belts, etc.). All these rules and guidelines are designed to ensure your safety, and help you stay on track.
The decision framework is similarly designed to help you move forward, to provide the guidelines and techniques that can help you with your decision making. If you ignore the guidelines or break the rules while driving, you can end up stalled, or even hurting yourself. Similarly, if you don’t follow the guidelines when making the decision, you may end up with a sub-optimal decision.
Conclusion
Decision-making is widely seen as a difficult problem in corporate circles, yet it is an integral part of our daily lives. What makes decision-making daunting is that it is not well understood, and is considered by many leaders as a difficult puzzle to solve. In this post, I discuss the various components of the decision-making process and then draw an analogy between decision-making and the act of driving a vehicle.
Typically, decision-making should follow a 3-step flow: before the decision, during the decision, and after the decision.
Before the decision, you need to define the decision and identify the owner and the stakeholders. Similarly, before you embark on a journey you need to identify the vehicle, the driver, and the passengers.
During the decision, you need to choose the right approach, assess the available information, review objections, and make amendments to the decision until you arrive at the final outcome. Similarly, during the journey you need to choose a route, check weather conditions and the traffic situation, stop over for refills, and change course as needed until you reach the final destination.
After the decision, you need to capture the decision and communicate it to the stakeholders and anyone else who is interested. Similarly, after reaching your final destination you can announce the end of your journey.
With this analogy, we can see how critical decision-making is. Having the wrong driver, taking the wrong route, or even ignoring the traffic rules can change not just the speed but also the final destination itself. Also, it is important to follow the 3-step flow in order to stay on track and to maximize the chances of a successful outcome.
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