7 Important Steps of the Decision Making Process [2024] • Asana (2024)

Summary

The decision making process is a method of gathering information, assessing alternatives, and making a final choice with the goal of making the best decision possible. In this article, we detail the step-by-step process on how to make a good decision and explain different decision making methodologies.

We make decisions every day. Take the bus to work or call a car? Chocolate or vanilla ice cream? Whole milk or two percent?

There's an entire process that goes into making those tiny decisions, and while these are simple, easy choices, how do we end up making more challenging decisions?

At work, decisions aren't as simple as choosing what kind of milk you want in your latte in the morning. That’s why understanding the decision making process is so important.

What is the decision making process?

The decision making process is the method of gathering information, assessing alternatives, and, ultimately, making a final choice.

The following seven step process is intended for challenging decisions that involve multiple stakeholders, but this process can be used for something as simple as what cereal to pour into your breakfast bowl in the morning.

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The 7 steps of the decision making process

Step 1: Identify the decision that needs to be made

When you're identifying the decision, ask yourself a few questions:

  • What is the problem that needs to be solved?

  • What is the goal you plan to achieve by implementing this decision?

  • How will you measure success?

These questions are all common goal setting techniques that will ultimately help you come up with possible solutions. When the problem is clearly defined, you then have more information to come up with the best decision to solve the problem.

Read: 22 types of business objectives to measure success

Step 2: Gather relevant information

​Gathering information related to the decision being made is an important step to making an informed decision. Does your team have any historical data as it relates to this issue? Has anybody attempted to solve this problem before?

It's also important to look for information outside of your team or company. Effective decision making requires information from many different sources. Find external resources, whether it’s doing market research, working with a consultant, or talking with colleagues at a different company who have relevant experience. Gathering information helps your team identify different solutions to your problem.

Step 3: Identify alternative solutions

This step requires you to look for many different solutions for the problem at hand. Finding more than one possible alternative is important when it comes to business decision-making, because different stakeholders may have different needs depending on their role. For example, if a company is looking for a work management tool, the design team may have different needs than a development team. Choosing only one solution right off the bat might not be the right course of action.

Read: What is decision tree analysis? 5 steps to make better decisions

Step 4: Weigh the evidence

This is when you take all of the different solutions you’ve come up with and analyze how they would address your initial problem. Your team begins identifying the pros and cons of each option, and eliminating alternatives from those choices.

There are a few common ways your team can analyze and weigh the evidence of options:

  • Pros and cons list

  • SWOT analysis

  • Decision matrix

Step 5: Choose among the alternatives

The next step is to make your final decision. Consider all of the information you've collected and how this decision may affect each stakeholder.

Sometimes the right decision is not one of the alternatives, but a blend of a few different alternatives. Effective decision-making involves creative problem solving and thinking out of the box, so don't limit you or your teams to clear-cut options.

One of the key values at Asana is to reject false tradeoffs. Choosing just one decision can mean losing benefits in others. If you can, try and find options that go beyond just the alternatives presented.

Step 6: Take action

Once the final decision maker gives the green light, it's time to put the solution into action. Take the time to create an implementation plan so that your team is on the same page for next steps. Then it’s time to put your plan into action and monitor progress to determine whether or not this decision was a good one.

Step 7: Review your decision and its impact (both good and bad)

Once you’ve made a decision, you can monitor the success metrics you outlined in step 1. This is how you determine whether or not this solution meets your team's criteria of success.

Here are a few questions to consider when reviewing your decision:

  • Did it solve the problem your team identified in step 1?

  • Did this decision impact your team in a positive or negative way?

  • Which stakeholders benefited from this decision? Which stakeholders were impacted negatively?

If this solution was not the best alternative, your team might benefit from using an iterative form of project management. This enables your team to quickly adapt to changes, and make the best decisions with the resources they have.

Types of decision making models

While most decision making models revolve around the same seven steps, here are a few different methodologies to help you make a good decision.

Decision-making tools for agile businesses

In this ebook, learn how to equip employees to make better decisions—so your business can pivot, adapt, and tackle challenges more effectively than your competition.

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7 Important Steps of the Decision Making Process [2024] • Asana (2)

​Rational decision making models

This type of decision making model is the most common type that you'll see. It's logical and sequential. The seven steps listed above are an example of the rational decision making model.

When your decision has a big impact on your team and you need to maximize outcomes, this is the type of decision making process you should use. It requires you to consider a wide range of viewpoints with little bias so you can make the best decision possible.

Intuitive decision making models

This type of decision making model is dictated not by information or data, but by gut instincts. This form of decision making requires previous experience and pattern recognition to form strong instincts.

This type of decision making is often made by decision makers who have a lot of experience with similar kinds of problems. They have already had proven success with the solution they're looking to implement.

Creative decision making model

The creative decision making model involves collecting information and insights about a problem and coming up with potential ideas for a solution, similar to the rational decision making model.

The difference here is that instead of identifying the pros and cons of each alternative, the decision maker enters a period in which they try not to actively think about the solution at all. The goal is to have their subconscious take over and lead them to the right decision, similar to the intuitive decision making model.

This situation is best used in an iterative process so that teams can test their solutions and adapt as things change.

Tracking key decisions can be challenging when not documented correctly. Learn more about how a work management tool like Asana can help your team track key decisions, collaborate with teammates, and stay on top of progress all in one place.

Decision-making tools for agile businesses

In this ebook, learn how to equip employees to make better decisions—so your business can pivot, adapt, and tackle challenges more effectively than your competition.

Get the insights

7 Important Steps of the Decision Making Process [2024] • Asana (3)

7 Important Steps of the Decision Making Process [2024] • Asana (2024)

FAQs

7 Important Steps of the Decision Making Process [2024] • Asana? ›

The most important step of the decision-making process is identifying the problem or the decision that needs to be made. This is because without a clear understanding of the problem, it is impossible to come up with a viable solution to the problem.

Which step is the most important step in the decision-making process responses? ›

The most important step of the decision-making process is identifying the problem or the decision that needs to be made. This is because without a clear understanding of the problem, it is impossible to come up with a viable solution to the problem.

What are the 6 steps in the decision-making process explain each step briefly? ›

The DECIDE model is the acronym of 6 particular activities needed in the decision-making process: (1) D = define the problem, (2) E = establish the criteria, (3) C = consider all the alternatives, (4) I = identify the best alternative, (5) D = develop and implement a plan of action, and (6) E = evaluate and monitor the ...

What are the 8 steps to the decision-making process? ›

Dr. Gleb Tsipursky
  • Identify need for decision.
  • Get relevant info.
  • Decide goals.
  • Develop criteria.
  • Generate a few viable options.
  • Weigh options.
  • Implement decision.
  • Revise implementation and decision as needed.
Mar 1, 2023

What is the DDDM process? ›

Data-driven decision making is the process of collecting data based on your company's key performance indicators (KPIs) and transforming that data into actionable insights. You can use business intelligence (BI) reporting tools during this process, which make big data collection fast and fruitful.

What is the most important part of the whole process of making a decision? ›

Identify: One of the most important steps in decision-making is to identify the goal associated with the decision. Pinpoint why this decision needs to be made and what problem it will solve. Keeping this in mind while making your decision will start you off on the right track to success.

What are the 6 C's of decision-making? ›

At the end of the paper a model of 6 Cs of decision i.e. Construct, Compile, Collect, Compare, Consider, Commit was offered to help attain cost effective decisions in organizations. choice.

What are the 6 factors of the decision-making process? ›

What are the factors influencing the decision-making process in crisis context?
  • (1) Personal factors,
  • (2) Organizational factors,
  • (3) Social factors,
  • (4) Environmental factors,
  • (5) Behavioral factors, and.
  • (6) Factors related to decision-making skills.
Jan 18, 2021

What is the step 5 in the seven step decision making model? ›

Step 5: Choose among alternatives

Once you have weighed all the evidence, you are ready to select the alternative that seems to be the best one for you. You may even choose a combination of alternatives.

What are the 12 steps in decision-making? ›

Mastering Decision-Making: A 12-Step Guide for Better Choices
  • 1–Clarify Your Goals. ...
  • 2–Gather Information. ...
  • 3–Identify Options. ...
  • 4–Evaluate the Pros and Cons of Each Option. ...
  • 5–Consider Your Values. ...
  • 6–Seek Input and Feedback. ...
  • 7–Avoid Rushing. ...
  • 8–Use a Decision-Making Framework.

What are the 8 types of decision-making? ›

Types of Decision Making
  • Programmed And Non-Programmed Decisions: Programmed decisions are routine and repetitive in nature. ...
  • Operational and Strategic Decisions: ...
  • Organizational and Personal Decisions: ...
  • Major and Minor Decisions: ...
  • Individual and Group Decisions: ...
  • Tactical and Operational Decisions:

What are the 10 steps of decision-making? ›

10 Steps to Making Better Decisions
  • Assess the Situation. Take the time to identify the situation clearly and then organize the issues that need to be addressed. ...
  • Take a Fresh Perspective. ...
  • Consider Your Options. ...
  • Analyze Each Option. ...
  • Get Unstuck. ...
  • Make the Decision. ...
  • Define an Action Plan. ...
  • Communicate Your Decision.

What are the key 5 steps of data-driven decision making? ›

The data-driven decision-making (DDDM) process involves six key steps: defining objectives, identifying and collecting data aligned with those objectives, organizing and exploring data, performing analysis on that data, drawing conclusions about what it says, and implementing and evaluating a plan based on those ...

What are the three main stages of data processing? ›

Six stages of data processing
  • Data collection. Collecting data is the first step in data processing. ...
  • Data preparation. Once the data is collected, it then enters the data preparation stage. ...
  • Data input. ...
  • Processing. ...
  • Data output/interpretation. ...
  • Data storage.

What is the first step in data-driven decision making? ›

Step 1: Strategy

Data-driven decision making starts with the all-important strategy. This helps focus your attention by weeding out all the data that's not helpful for your business. First, identify your goals — what can data do for you?

Which of the following is an important step in the decision-making process? ›

Final answer:

Gathering information, consulting stakeholders, and evaluating options are important steps in the decision-making process.

What is the first step in the decision-making process and why is it important? ›

To make a decision, you must first identify the problem you need to solve or the question you need to answer. Clearly define your decision. If you misidentify the problem to solve, or if the problem you've chosen is too broad, you'll knock the decision train off the track before it even leaves the station.

Which of the phases in the choosing process is most important? ›

The first step is also the most important. Without properly defining the problem that you need to make a decision on, you won't be able to properly do any of the steps that follow.

Is an important part of the decision-making process? ›

Analytical Study of the Alternatives:

For decision-making, analytical study of all possible alternatives of a problem with their merits and demerits is essential. This is necessary to make out a correct selection of decision from among the alternatives.

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