The decisions or choices we make in our lives make up the fabric that weaves our destiny. We make mundane choices in our daily routines and critical ones that can alter the course of our lives. While we normally look at decision-making as a rational and cognitive function involving selection from a set of alternatives, there are intricacies in this process influenced by psychological, emotional, social, environmental and temporal factors.
The normal assumption is we strive for logical choices based on reason and evidence. However, psychologists argue that emotions will shape our perceptions and sway our judgments. By acknowledging that reason and emotions are not mutually exclusive, the seasoned decision-maker will be guided as to when logic should prevail and when emotions as well as intuition can play a larger role.
A seminal article by Henry Mintzberg and Frances Westley entitled “Decision-making: It’s Not What You Think” proposed that the rationale or “thinking first” model of decision-making should be supplemented with two very different models — a “seeing first” and a “doing first” model. Intuitive and action-oriented approaches should be part of our menu in coming up with the right choice. They argue that with proper use of all models, the quality of decision-making can be improved.
Rational decision-making follows these steps. First define the problem, then diagnose its causes, design possible solutions and finally, decide which is best. When the authors reviewed decision-making cases, they saw confusion in the steps. There’s even a hypothesis about choices looking for problems, and solutions looking for issues. So much of the process goes beyond conscious thought.
The second model is “seeing first,” which relies on insight or “seeing into.” This follows the creative discovery pattern of preparation, incubation, followed by illumination and finally, verification. As quoted from Louis Pasteur, “chance only favors the prepared mind.” Seeing happens to those who have developed deep knowledge over the years. Understanding can be visual as well as conceptual. Visioning means seeing what others do not and having the unconscious mind leading to that eureka moment.
“Doing first” is how pragmatic people function. It is the process of experimentation, doing various things and finding out which among them work. This is doing driving thinking, and acting in order to think. Sequentially, it goes this way: enactment, then selection and finally, retention. Sometimes, insisting on “thinking first” may discourage learning.
“Thinking first” features the qualities of science, planning, programming, the verbal and facts. “Seeing first” features the qualities of art, visioning, imagining, the visual and ideas. “Doing first” features the qualities of craft, venturing, learning, the visceral and experiences.
The paradox of choice, a concept popularized by psychologist Barry Schwartz, further complicates the decision-making process. The abundance of options can intuitively lead to less happiness, less satisfaction and hamper the ability to decide. The quest for the optimal decision becomes a daunting task, leading to decision fatigue and avoidance altogether.
The external environment exerts pressure on the decision-making process. Social influences, cultural norms and peer pressure mold our desires without a conscious awareness. In today’s age of social media intrusion into our personal space, a myriad of external forces is at play. Even the surge in mental health cases has been attributed to this. And with our mental health under attack, consciously or unconsciously, choices are naturally affected.
The temporal or time dimension adds another layer of complexity. We should discern between the important and the urgent. Not making the correct distinction can cloud our judgment. Choices made with careful deliberation with the benefit of time differ widely from choices made impulsively or in the heat of the moment.
Decision-making is not as straightforward as it looks like, but its mastery will help lead to better lives. Understanding the rational, psychological, social, environmental and the temporal dimensions can lead to better self-awareness and reflection. Choices or decisions should align with one’s long-term goals. There is no one way approach to making these choices that eventually define the journey we take in life. It may seem complex, but we should embrace the challenges and not look at these as burdens to be hurdled.
The views expressed here are his own and do not necessarily reflect the opinion of his office as well as FINEX.
Benel Dela Paz Lagua was previously EVP and chief development officer at the Development Bank of the Philippines. He is an active FINEX member and an advocate of risk-based lending for SMEs. Today, he is independent director in progressive banks and in some NGOs.