September 9, 2013

The Practice of Making Decisions

Decisions are a skill that improves with deliberate practice, but most people never practice the meta-level: how to run a decision process well, separate from what the decision is about.

6 min read

Decisions as a Domain

Most people treat decisions as events - discrete moments of choice - rather than as a domain of practice with skills that can be improved.

This is strange given how consequential decisions are. The quality of your decisions, compounded over time, is a large determinant of where you end up. Yet most people invest almost nothing in improving how they make decisions, as opposed to improving the domain-level knowledge that informs particular decisions.

Decision-making is a meta-skill: the ability to run a decision process well, regardless of what the decision is about. It is separable from domain knowledge and trainable as an independent competency.

What the Practice Involves

The practice of making decisions has several distinct components.

Problem framing: How you frame the decision determines what solutions are visible. "Should I take this job?" and "What would have to be true about this job for it to be the right choice?" are the same question asked from different frames, and they produce very different analyses. Skilled decision-makers hold multiple frames simultaneously and choose between them deliberately.

Options generation: Most people evaluate two or three options - often just the default and one alternative. Skilled decision-makers generate more options before evaluating any of them. The best option is often not in the first set that comes to mind.

Criteria weighting: Decisions involve trade-offs across multiple criteria. The implicit weighting of those criteria often goes unexamined. Making the weighting explicit - "speed matters more than cost in this case, because..." - makes the decision auditable and the reasoning improvable.

Pre-mortem analysis: Before deciding, imagining that the decision turned out badly and working backward from the failure. This surfaces risks that forward-looking analysis tends to miss.

Recording and review: Writing down the decision, the reasoning, and the expected outcomes. Reviewing past decisions against actual outcomes. Most people have very poor feedback loops on their decisions because they neither record the reasoning nor review the outcomes systematically.

The Feedback Gap

The primary obstacle to improving decision-making is the feedback gap. Decisions are made, time passes, outcomes occur - but the connection between the decision quality and the outcome is usually too noisy to draw clear lessons.

Many decisions turn out well despite bad reasoning, and poorly despite good reasoning. The world adds randomness that makes outcome-based feedback unreliable as a quality signal.

This means decision-making cannot be improved primarily through outcome-based feedback. It has to be improved through process-based feedback: reviewing not just what happened but how the decision was made, whether the framing was appropriate, whether the options were complete, whether the criteria were weighted well given what mattered.

This is what calibration research does systematically, and what individual decision-makers almost never do.

The Minimum Practice

The minimum practice requires just two habits.

Record decisions. Not every minor decision, but the ones that matter - write down what you decided, why, and what you expected to happen.

Review them. Not to judge yourself harshly but to notice patterns: Where is your confidence poorly calibrated? What kinds of options do you routinely miss? What criteria do you overweight or underweight in practice?

These two habits create the feedback loop that most decision-makers lack. Over time, they make the practice of deciding - separate from what is being decided - an area of genuine improvement.