How to make better decisions

Consider both costs and benefits

One factor we often forget is the 'opportunity cost'. When we do one thing, we can't be doing something else at the same time. It’s either or. When you watch TV, the benefits are relaxation and enjoyment – but the cost is that you can't use that same time to read a business book. Therefore, force yourself to list the pros and cons.

Justify yourself

When we think someone will check up on us, we make more mental effort, leading to better decision-making. Imagine you have to justify your decision to someone else. Would you still make that decision?

Distance yourself from the issue

Our brains are influenced by our current emotions, which can impair rationality. Big decisions are better made after a good night's sleep. Step back and consider the likely chain of events. What are the future implications of this decision?

Don't believe the hype

It's easy to be persuaded by vivid stories and ignore scientific evidence. Look carefully at the information source and sample size – are you being manipulated?

Make fewer decisions

Peter Drucker said effective executives do not make many decisions, they concentrate on making a few important ones. Make the big strategic decisions, rather than try to solve lots of little problems. Do not make fast decisions. Make the right decisions that have the biggest impact.

What would Spock do?

Just reminding ourselves to think rationally helps us make better decisions. Consciously trying to think rationally will also help activate all the other techniques described here.