Eric McNulty on Business
As holiday shopping time envelopes us -- with lots of decisions about who gets what -- it is a great time to look at the emerging best practices of decision making.
Though the research has been going on for decades, the science of decision making really began to get notice when Daniel Kahneman of Princeton was named co-winner of the Nobel Prize in Economics for his work in the area.
Since then, more and more work has surfaced to show that a firm's capacity and capability for decision making can have a significant impact on the bottom line.
Michael Mankins of Marakon Associates published research that showed that a firm can build value by improving its ability to make strategic decisions efficiently. Even simply increasing the number of strategic decisions made helps generate value.\n\nMichael Watkins and Max Bazerman published Predictable Surprises, a book that looked at the effect of biases in decision making. Understanding and acting to account for decision making biases is one way to improve the quality of one's decisions.\n\nOne consulting firm, Strategic Decision Group, even specializes in this area.\n\nThe forthcoming January 2006 issue of the Harvard Business Review will be dedicated to the topic.\n\nSo if you are looking to turbocharge your performance and that of your organization, start looking at better decision making.