Decision making is easy… effective decision making is not so easy.

Decision making is where a person decides to do something based on the information they have in front of them.

Effective decision making is where a person decides to do something based on the information they have in front of them AND the information they have gathered to look at the decision from as many angles as possible.

For example: (This is a real world example I spotted online this week!)

Let’s say that you see a coaching course which will cost you £800 each month for a year. That coaching course should help you build a six figure a year business.

The decision that most people face is whether to buy or not based on whether they can afford it or not.

For them, there are only two options… buy or don’t buy.

The decision is based purely on whether they can afford it or not with the money they currently have.

It’s understandable… in a way.

Effective decision making would look at the situation from every angle possible and not purely on the price of the product.

Instead of can I afford this or not, effective decision making would ask questions such as:

• What would happen if I bought this course?

• Could this be a case of ‘I cannot afford NOT to buy it’, by not spending £800 a month, could I be missing out on thousands by the end of the year?

• Is there a way to generate the £800 I need each month to cover the monthly fee?

• Will the information and help within the course help me to afford the £800 monthly fee effectively making it free?

• If I’m considering spending £800 a month on this course, is there a better way to use that £800 per month myself?

• Should I spend £800 on a coaching course which will no doubt require me to spend more money on having stuff made and/or run advertising… or should I simply use that money myself to have stuff made and/or run advertising and start to build my own business now without them?

Effective decision making means looking at all variables and outcomes and making the best informed decision possible.

You may not make the right decision all of the time, but you will make less bad decisions.

Many people make decisions on only a few pieces of obvious information.

A lot of people make decisions based on what they have learned to do by watching other people make decisions.

If your parents and other family members regularly made decisions based on just a couple pieces of information such as ‘can I currently afford it or not’ then it’s highly likely that your decision making process would be the same.

Unless you have learned how to do effective decision making looking for angles which are not so obvious and making necessary comparisons, you’ll probably make decisions like most of the population… ineffectively.

Andi our techy guy once told me the story about the ‘old copper water tank’ fiasco which happened when he was refurbishing his first house over 20 years ago.

He had ripped out the old emersion water heater and replaced it with a new combination boiler and central heating system.

He was left with a large copper tank.

About to throw it into the skip, a family member suggested that he should keep it and take it to a scrap yard as it could be worth ‘a few bob’.

So that is what Andi did, instead of putting it into the skip, he put it aside for safe keeping until the day he could take it to the scrap yard.

Unfortunately, the whole house was under refurbishment and so ‘aside’ was more often ‘in the way’ which resulted in Andi spending a lot of time moving the copper tank from pillar to post.

Eventually he got to the scrap yard with the copper tank and was given a lousy £5 for it.

£5 is £5!

It’s got to be better in his pocket than someone else’s right?

Wrong!

Andi realised that he had spent a lot of time and effort moving that copper tank about. He also used a small amount of fuel making a special trip to the scrap yard.

For his time and effort he received £5. It barely bought his lunch.

The amount of time and effort used saving that copper tank could have made him more money had he decided to use it elsewhere.

Being a certified and time served joiner, Andi could have taken an hour out of his day and hung a door for a customer and been paid £30 or more.

He could have skipped the copper tank, carried on with what he was doing and then popped out to do an hour’s work for more money… and it would have been a lot less hassle.

The decision to save the copper tank had been made quickly based on information which was not properly thought through.

Every day we are faced with decisions that need to be made. Most days it’s mostly small decisions but every now and then there are a few big decisions.

Decisions affect our:

• Time.
• Health.
• Finances.

Make a bad decision and one or more of those three things will be affected.

Sometimes the affects can be incredibly harmful and long lasting.

Small decisions can be made there and then and their effects are small in comparison to big decisions.

I’m a big believer that big decisions should not be made without spending some quiet time with a notepad, a pen and a brew.

A big decision should be made by looking at all the information, variables and outcomes possible.

And if that means looking for comparative information which is not obvious then so be it.

What do I mean by comparative information?

There are people who will not spend £197 on a product which will show them how to make thousands of pounds extra because they ‘decide’ they cannot afford it…

But they do ‘decide’ daily to spend £2… £5… £10 on food and drink without considering the financial consequences.

Those small decisions probably cost them more than the £197 they think they cannot afford to spend on life changing information…

But they cannot see or understand that because they do not spend any time engaged in effective decision making.

Those small decisions rob them of the opportunity to make decent big decisions which could have a positive effect on their lives.

Deciding to watch a few hours of television most nights instead of learning a set of specific skills robs you of a different – and probably – better life.

I write this email because I want you to know and understand what effective decision making is and so that when a big decision needs to be made, you are able to stop, gather all relevant information, variables and outcomes and think about the decision more effectively.

You owe it to yourself.

Kind Regards

John Harrison

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