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8 Steps in the Decision-Making Process

• 04 Feb 2020

Strong decision-making skills are essential for newly appointed and seasoned managers alike. The ability to navigate complex challenges and develop a plan can not only lead to more effective team management but drive key organizational change initiatives and objectives.

Despite decision-making’s importance in business, a recent survey by McKinsey shows that just 20 percent of professionals believe their organizations excel at it. Survey respondents noted that, on average, they spend 37 percent of their time making decisions, but more than half of it’s used ineffectively.

For managers, it’s critical to ensure effective decisions are made for their organizations’ success. Every managerial decision must be accompanied by research and data , collaboration, and alternative solutions.

Few managers, however, reap the benefits of making more thoughtful choices due to undeveloped decision-making models.

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Why Is Making Decisions Important?

According to Harvard Business School Professor Leonard Schlesinger, who’s featured in the online course Management Essentials , most managers view decision-making as a single event, rather than a process. This can lead to managers overestimating their abilities to influence outcomes and closing themselves off from alternative perspectives and diverse ways of thinking.

“The reality is, it’s very rare to find a single point in time where ‘a decision of significance’ is made and things go forward from there,” Schlesinger says. “Embedded in this work is the notion that what we’re really talking about is a process. The role of the manager in managing that process is actually quite straightforward, yet, at the same time, extraordinarily complex.”

If you want to further your business knowledge and be more effective in your role, it’s critical to become a strong decision-maker. Here are eight steps in the decision-making process you can employ to become a better manager and have greater influence in your organization.

Steps in the Decision-Making Process

1. frame the decision.

Pinpointing the issue is the first step to initiating the decision-making process. Ensure the problem is carefully analyzed, clearly defined, and everyone involved in the outcome agrees on what needs to be solved. This process will give your team peace of mind that each key decision is based on extensive research and collaboration.

Schlesinger says this initial action can be challenging for managers because an ill-formed question can result in a process that produces the wrong decision.

“The real issue for a manager at the start is to make sure they are actively working to shape the question they’re trying to address and the decision they’re trying to have made,” Schlesinger says. “That’s not a trivial task.”

2. Structure Your Team

Managers must assemble the right people to navigate the decision-making process.

“The issue of who’s going to be involved in helping you to make that decision is one of the most central issues you face,” Schlesinger says. “The primary issue being the membership of the collection of individuals or group that you’re bringing together to make that decision.”

As you build your team, Schlesinger advises mapping the technical, political, and cultural underpinnings of the decision that needs to be made and gathering colleagues with an array of skills and experience levels to help you make an informed decision. .

“You want some newcomers who are going to provide a different point of view and perspective on the issue you’re dealing with,” he says. “At the same time, you want people who have profound knowledge and deep experience with the problem.”

It’s key to assign decision tasks to colleagues and invite perspectives that uncover blindspots or roadblocks. Schlesinger notes that attempting to arrive at the “right answer” without a team that will ultimately support and execute it is a “recipe for failure.”

3. Consider the Timeframe

This act of mapping the issue’s intricacies should involve taking the decision’s urgency into account. Business problems with significant implications sometimes allow for lengthier decision-making processes, whereas other challenges call for more accelerated timelines.

“As a manager, you need to shape the decision-making process in terms of both of those dimensions: The criticality of what it is you’re trying to decide and, more importantly, how quickly it needs to get decided given the urgency,” Schlesinger says. “The final question is, how much time you’re going to provide yourself and the group to invest in both problem diagnosis and decisions.”

4. Establish Your Approach

In the early stages of the decision-making process, it’s critical to set ground rules and assign roles to team members. Doing so can help ensure everyone understands how they contribute to problem-solving and agrees on how a solution will be reached.

“It’s really important to get clarity upfront around the roles people are going to play and the ways in which decisions are going to get made,” Schlesinger says. “Often, managers leave that to chance, so people self-assign themselves to roles in ways that you don’t necessarily want, and the decision-making process defers to consensus, which is likely to lead to a lower evaluation of the problem and a less creative solution.”

5. Encourage Discussion and Debate

One of the issues of leading a group that defaults to consensus is that it can shut out contrarian points of view and deter inventive problem-solving. Because of this potential pitfall, Schlesinger notes, you should designate roles that focus on poking holes in arguments and fostering debate.

“What we’re talking about is establishing a process of devil’s advocacy, either in an individual or a subgroup role,” he says. “That’s much more likely to lead to a deeper critical evaluation and generate a substantial number of alternatives.”

Schlesinger adds that this action can take time and potentially disrupt group harmony, so it’s vital for managers to guide the inner workings of the process from the outset to ensure effective collaboration and guarantee more quality decisions will be made.

“What we need to do is establish norms in the group that enable us to be open to a broader array of data and decision-making processes,” he says. “If that doesn’t happen upfront, but in the process without a conversation, it’s generally a source of consternation and some measure of frustration.”

Related: 3 Group Decision-Making Techniques for Success

6. Navigate Group Dynamics

In addition to creating a dynamic in which candor and debate are encouraged, there are other challenges you need to navigate as you manage your team throughout the decision-making process.

One is ensuring the size of the group is appropriate for the problem and allows for an efficient workflow.

“In getting all the people together that have relevant data and represent various political and cultural constituencies, each incremental member adds to the complexity of the decision-making process and the amount of time it takes to get a decision made and implemented,” Schlesinger says.

Another task, he notes, is identifying which parts of the process can be completed without face-to-face interaction.

“There’s no question that pieces of the decision-making process can be deferred to paper, email, or some app,” Schlesinger says. “But, at the end of the day, given that so much of decision-making requires high-quality human interaction, you need to defer some part of the process for ill-structured and difficult tasks to a face-to-face meeting.”

7. Ensure the Pieces Are in Place for Implementation

Throughout your team’s efforts to arrive at a decision, you must ensure you facilitate a process that encompasses:

• Shared goals that were presented upfront
• Alternative options that have been given rigorous thought and fair consideration
• Sound methods for exploring decisions’ consequences

According to Schlesinger, these components profoundly influence the quality of the solution that’s ultimately identified and the types of decisions that’ll be made in the future.

“In the general manager’s job, the quality of the decision is only one part of the equation,” he says. “All of this is oriented toward trying to make sure that once a decision is made, we have the right groupings and the right support to implement.”

8. Achieve Closure and Alignment

Achieving closure in the decision-making process requires arriving at a solution that sufficiently aligns members of your group and garners enough support to implement it.

As with the other phases of decision-making, clear communication ensures your team understands and commits to the plan.

In a video interview for the online course Management Essentials , Harvard Business School Dean Nitin Nohria says it’s essential to explain the rationale behind the decision to your employees.

“If it’s a decision that you have to make, say, ‘I know there were some of you who thought differently, but let me tell you why we went this way,’” Nohria says. “This is so the people on the other side feel heard and recognize the concerns they raised are things you’ve tried to incorporate into the decision and, as implementation proceeds, if those concerns become real, then they’ll be attended to.”

How to Improve Your Decision-Making

An in-depth understanding of the decision-making process is vital for all managers. Whether you’re an aspiring manager aiming to move up at your organization or a seasoned executive who wants to boost your job performance, honing your approach to decision-making can improve your managerial skills and equip you with the tools to advance your career.

Do you want to become a more effective decision-maker? Explore Management Essentials —one of our online leadership and management courses —to learn how you can influence the context and environment in which decisions get made.

This article was update on July 15, 2022. It was originally published on February 4, 2020.

About the Author

Effective Decision Making Process: 7 Steps with Examples

By Status.net Editorial Team on June 3, 2023 — 9 minutes to read

Making decisions is an inevitable part of life, and knowing how to navigate through the decision-making process can be crucial for both your personal and professional success. In this article, we will explore the seven essential steps to help you make thoughtful and informed choices.

Step 1: Identify the Decision

When you’re faced with a problem or challenge, it’s essential to identify the decision you need to make. Start by defining the objective of what you want to achieve. It’s helpful to take a step back and assess the situation to fully understand the problem at hand.

To get a clear picture of the issue, gather information from multiple angles and examine the factors involved. This will help you gain a better understanding of the context and possible options available. Make sure to evaluate the pros and cons of each scenario.

For example, if your company is facing a dip in sales, you might need to decide whether to launch a new advertising campaign or improve product offerings.

Step 2: Gather Relevant Information

Conduct thorough market research to understand the current state of the market, as well as any expected trends and developments. Make use of both primary and secondary sources, such as interviews with experts and published reports, while remaining mindful of any potential biases. Your objective is to collect accurate, up-to-date data that allows you to make an informed decision.

Consider the various resources at your disposal. These may be online databases, industry reports, or even colleagues with relevant expertise. As you gather information, remember to keep track of your sources to reference them later. Maintaining proper documentation can save time and simplify any further analysis.

Don’t forget to consult the stakeholders involved in the decision. Their opinions, concerns, and suggestions can offer valuable insights and expose any blind spots. Engaging them in the process also fosters a sense of shared responsibility and encourages open communication.

For example:

• If you’re deciding on a new product to launch, gather information on market trends, customer preferences, and competitor offerings. This will provide a comprehensive understanding of the market landscape and opportunities for growth.
• When selecting a new supplier, research their financial stability, environmental performance, and customer reviews. This will help you ensure a long-lasting and beneficial partnership.
• If you’re debating whether to pursue a new marketing campaign, consult your sales team, marketing department, and customer service representatives. Their firsthand experience interacting with customers and interpreting their needs can prove invaluable in shaping the objectives and strategies of the campaign.

Step3: Identify Alternatives

While brainstorming alternatives, keep an open mind and consider all possible options, even if they seem unconventional or unusual at first glance. Don’t limit yourself to the obvious; sometimes, the most effective solution might be the one that is least expected.

As you gather alternatives, it’s helpful to list them down. Organize your list in a way that makes it easy for you to see the various options, their pros, and cons. Summarizing each alternative in a concise manner can help you to better understand their implications.

For example, when deciding on a new marketing strategy, you could list these alternatives:

• Traditional Marketing : Pros: Familiarity, proven results; Cons: High cost, limited audience reach
• Social Media Marketing : Pros: Low cost, broad audience reach; Cons: Time-intensive, potential negative engagement
• Content Marketing : Pros: Engaging, builds trust; Cons: Slow results, resource-intensive

Once you’ve listed your alternatives with their pros and cons, you can start comparing them to one another. Try to objectively assess the advantages and drawbacks of each solution in relation to the decision at hand. It might be helpful to rank them based on their potential effectiveness and feasibility.

As you identify alternatives, always be prepared to revise or expand your list. Be open to new insights and feedback from others.

Step 4: Weigh the Evidence

After gathering all the relevant information and alternatives for a decision, you’ll want to weigh the evidence before making a choice. This step in the 7-step decision-making process is crucial and ensures that you’re evaluating each option fairly.

To weigh the evidence properly, consider starting with a decision matrix. A decision matrix is a tool that helps organize and compare different alternatives based on specific criteria that matter to you. This method helps you quantify each option, making it easier to evaluate and prioritize them.

When using a decision matrix, list your options in rows and your criteria in columns. You’ll then assign a weight to each criterion according to its importance. After that, rate each option based on how well it meets the specific criterion. Multiply the rating by the weight, and then sum the results to get a total score for each option.

While weighing the evidence, it’s essential to trust your intuition. Your gut feeling might provide valuable insights based on your past experiences and knowledge. However, don’t rely solely on intuition, as it may sometimes lead to bias or ignore critical data.

During this stage, it’s crucial to assess the risks of each option. Knowing the potential consequences of each choice allows you to anticipate possible setbacks and challenges, preparing you for better decision-making. Be mindful of the common pitfalls in the process, such as groupthink, lack of diversity in perspectives, or being overly influenced by emotional factors.

Here are some examples to illustrate this step:

• Career: You’re considering a job offer from two companies. You gather information about salary, benefits, company culture, and growth opportunities, then weigh the evidence using a decision matrix. Your intuition tells you that one company aligns better with your values, so you weigh that factor more heavily when making your decision.
• Investment: You’re evaluating two investments with different levels of risk and potential return. By weighing the evidence – historical performance, growth potential, and industry trends – you create a decision matrix that includes your personal risk tolerance and financial goals. This method helps you determine which investment is the better fit for your unique situation.
• Product Launch: You have several ideas for new products, and you need to decide which one to prioritize. By weighing the evidence – potential market demand, production costs, and competition – using a decision matrix, you can quantitatively assess each idea and make an informed decision on which product to develop first.

Weighing the evidence is essential to making well-informed decisions. By considering various factors, relying on both intuition and data, and assessing the risks and challenges, you’ll be better equipped to make choices that benefit both you and your organization.

Step 5: Choose Among Alternatives

Start by prioritizing your options. Analyze each alternative and determine which ones align best with your objectives. This part could be as simple as ranking alternatives from most desirable to least desirable. Prioritize based on factors such as potential benefits, risks, costs, and resources available.

Another approach is using a decision tree, a visual tool that can help clarify and map out your choices. A decision tree charts the various courses of action, outcome probabilities, and expected payoff. By working through a decision tree, you can systematically evaluate your options and find the optimal solution.

As you evaluate each choice, imagine potential outcomes and how they could impact your objectives. Assessing the pros and cons of each alternative will provide insight on the best course of action.

Example 1: Imagine you’re debating between accepting a job offer or staying at your current job. You could prioritize based on factors like salary, career growth potential, work-life balance, and job security. Use a decision tree to visualize the potential payoffs and risks of each choice.

Example 2: If you’re deciding on a marketing strategy for your business, prioritize options like cost-effectiveness, target audience reach, and expected return on investment. Use a decision tree to analyze each strategy, considering factors like potential growth and customer engagement.

Step 6: Take Action

Once you’ve weighed your options and made a decision, it’s time to take action. As a part of an organization, your leadership and management skills will play a crucial role in executing the plan. Follow these steps to bring your decision to life:

• Communicate the decision to all relevant parties: Make sure everyone involved, from team members to stakeholders, knows the chosen course of action. Clear communication will ensure everyone is on the same page.
• Set goals and expectations: Establish both short-term and long-term objectives to monitor progress and determine whether the chosen path is effective. It’s essential to have a clear set of expectations so that your team is aligned with your vision. Examples of goals: – Rolling out a new product within 6 months – Decreasing expenditure by 15% in the next quarter – Increasing overall market share by 10% in the following year
• Create a timeframe: Outline the sequence of tasks and establish deadlines for each step. A well-defined timeline will help in keeping the momentum going, and ensure that the desired results are reached within the allotted time.
• Delegate responsibilities and provide resources: Assign tasks to team members based on their expertise and provide the necessary tools, training, and support to help them succeed.
• Monitor progress and make adjustments as needed: Regularly review your team’s progress and be open to making changes if something isn’t working. Flexibility is crucial for effective decision-making.

Step 7: Review Your Decision

As you go through the decision-making process, it’s essential to review your decision to ensure it’s the best choice for you and your business. This step allows you to reflect on the potential risks and benefits associated with your decision. By reviewing your decision, you position yourself to make better choices and improve your overall decision-making skills.

Example : You decided to implement a new software system in your company. After a few months, review the system’s performance and observe if it increases productivity, reduces errors, and improves customer satisfaction. If needed, make adjustments to maximize its benefits.

Example : After launching a new product, analyze its sales performance, customer feedback, and market response. Identify areas where improvements can be made, or if necessary, consider discontinuing the product.

Don’t be afraid to adjust course if you find that your initial choice isn’t working as you had hoped. Keep in mind that making sound decisions is an ongoing process requiring flexibility and adaptability. As your situation evolves and circumstances change, you must be willing to reassess and revise your decisions to maintain success and growth.

Frequently Asked Questions

Which steps form the decision-making process.

The decision-making process usually consists of seven steps:

• Identify the problem or decision
• Gather information and resources
• Identify possible options or solutions
• Evaluate the options and their outcomes
• Choose the best option for the situation
• Implement your chosen decision
• Review the results and learn from them

What variations exist in the decision-making process?

While the decision-making process is typically broken down into seven steps, there may be variations depending on factors like individual preferences, the complexity of the decision, and time constraints. Some variations include:

• Relying more on intuition or gut feelings
• Skipping certain steps due to urgency
• Using decision-making tools or models like SWOT analysis or decision trees

How can I apply decision-making steps in real life?

You can apply the seven-step decision-making process in real life by:

• Clearly defining the problem or decision
• Gathering relevant information and resources
• Identifying possible options, solutions or alternatives
• Evaluating each option and predicting their outcomes
• Selecting the best option based on your criteria
• Implementing your chosen decision
• Reviewing the results and learning from the experience

Related: Personal SWOT Analysis: Unlock Your Potential in 4 Steps

• What is Problem Solving? (Steps, Techniques, Examples)
• Ethical Decision Making Models and 6 Steps of Ethical Decision Making Process
• Effective Nonverbal Communication in the Workplace (Examples)
• How to Resolve Employee Conflict at Work [Steps, Tips, Examples]
• How to Write Inspiring Core Values? 5 Steps with Examples
• 38 Empathy Statements: Examples of Empathy

Work Life is Atlassian’s flagship publication dedicated to unleashing the potential of every team through real-life advice, inspiring stories, and thoughtful perspectives from leaders around the world.

Contributing Writer

Work Futurist

Senior Quantitative Researcher, People Insights

Principal Writer

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This is how effective teams navigate the decision-making process

Zero Magic 8 Balls required.

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Flipping a coin. Throwing a dart at a board. Pulling a slip of paper out of a hat.

Sure, they’re all ways to make a choice. But they all hinge on random chance rather than analysis, reflection, and strategy — you know, the things you actually need to make the big, meaty decisions that have major impacts.

So, set down that Magic 8 Ball and back away slowly. Let’s walk through the standard framework for decision-making that will help you and your team pinpoint the problem, consider your options, and make your most informed selection. Here’s a closer look at each of the seven steps of the decision-making process, and how to approach each one. 

Step 1: Identify the decision

Most of us are eager to tie on our superhero capes and jump into problem-solving mode — especially if our team is depending on a solution. But you can’t solve a problem until you have a full grasp on what it actually is .

This first step focuses on getting the lay of the land when it comes to your decision. What specific problem are you trying to solve? What goal are you trying to achieve? 

How to do it: 

• Use the 5 whys analysis to go beyond surface-level symptoms and understand the root cause of a problem.
• Try problem framing to dig deep on the ins and outs of whatever problem your team is fixing. The point is to define the problem, not solve it. 

⚠️ Watch out for: Decision fatigue , which is the tendency to make worse decisions as a result of needing to make too many of them. Making choices is mentally taxing , which is why it’s helpful to pinpoint one decision at a time. 

2. Gather information

Your team probably has a few hunches and best guesses, but those can lead to knee-jerk reactions. Take care to invest adequate time and research into your decision.

This step is when you build your case, so to speak. Collect relevant information — that could be data, customer stories, information about past projects, feedback, or whatever else seems pertinent. You’ll use that to make decisions that are informed, rather than impulsive.

• Host a team mindmapping session to freely explore ideas and make connections between them. It can help you identify what information will best support the process.
• Create a project poster to define your goals and also determine what information you already know and what you still need to find out. 

⚠️ Watch out for: Information bias , or the tendency to seek out information even if it won’t impact your action. We have the tendency to think more information is always better, but pulling together a bunch of facts and insights that aren’t applicable may cloud your judgment rather than offer clarity. 

3. Identify alternatives

Use divergent thinking to generate fresh ideas in your next brainstorm

Blame the popularity of the coin toss, but making a decision often feels like choosing between only two options. Do you want heads or tails? Door number one or door number two? In reality, your options aren’t usually so cut and dried. Take advantage of this opportunity to get creative and brainstorm all sorts of routes or solutions. There’s no need to box yourselves in. 

• Use the Six Thinking Hats technique to explore the problem or goal from all sides: information, emotions and instinct, risks, benefits, and creativity. It can help you and your team break away from your typical roles or mindsets and think more freely.
• Try brainwriting so team members can write down their ideas independently before sharing with the group. Research shows that this quiet, lone thinking time can boost psychological safety and generate more creative suggestions .

⚠️ Watch out for: Groupthink , which is the tendency of a group to make non-optimal decisions in the interest of conformity. People don’t want to rock the boat, so they don’t speak up. 

4. Consider the evidence

Armed with your list of alternatives, it’s time to take a closer look and determine which ones could be worth pursuing. You and your team should ask questions like “How will this solution address the problem or achieve the goal?” and “What are the pros and cons of this option?” 

Be honest with your answers (and back them up with the information you already collected when you can). Remind the team that this isn’t about advocating for their own suggestions to “win” — it’s about whittling your options down to the best decision. 

How to do it:

• Use a SWOT analysis to dig into the strengths, weaknesses, opportunities, and threats of the options you’re seriously considering.
• Run a project trade-off analysis to understand what constraints (such as time, scope, or cost) the team is most willing to compromise on if needed. 

⚠️ Watch out for: Extinction by instinct , which is the urge to make a decision just to get it over with. You didn’t come this far to settle for a “good enough” option! 

5. Choose among the alternatives

This is it — it’s the big moment when you and the team actually make the decision. You’ve identified all possible options, considered the supporting evidence, and are ready to choose how you’ll move forward.

However, bear in mind that there’s still a surprising amount of room for flexibility here. Maybe you’ll modify an alternative or combine a few suggested solutions together to land on the best fit for your problem and your team. 

• Use the DACI framework (that stands for “driver, approver, contributor, informed”) to understand who ultimately has the final say in decisions. The decision-making process can be collaborative, but eventually someone needs to be empowered to make the final call.
• Try a simple voting method for decisions that are more democratized. You’ll simply tally your team’s votes and go with the majority. 

⚠️ Watch out for: Analysis paralysis , which is when you overthink something to such a great degree that you feel overwhelmed and freeze when it’s time to actually make a choice. 

6. Take action

Making a big decision takes a hefty amount of work, but it’s only the first part of the process — now you need to actually implement it. 

It’s tempting to think that decisions will work themselves out once they’re made. But particularly in a team setting, it’s crucial to invest just as much thought and planning into communicating the decision and successfully rolling it out. 

• Create a stakeholder communications plan to determine how you’ll keep various people — direct team members, company leaders, customers, or whoever else has an active interest in your decision — in the loop on your progress.
• Define the goals, signals, and measures of your decision so you’ll have an easier time aligning the team around the next steps and determining whether or not they’re successful. 

⚠️Watch out for: Self-doubt, or the tendency to question whether or not you’re making the right move. While we’re hardwired for doubt , now isn’t the time to be a skeptic about your decision. You and the team have done the work, so trust the process. 

7. Review your decision

9 retrospective techniques that won’t bore your team to tears

As the decision itself starts to shake out, it’s time to take a look in the rearview mirror and reflect on how things went.

Did your decision work out the way you and the team hoped? What happened? Examine both the good and the bad. What should you keep in mind if and when you need to make this sort of decision again? 

• Do a 4 L’s retrospective to talk through what you and the team loved, loathed, learned, and longed for as a result of that decision.
• Celebrate any wins (yes, even the small ones ) related to that decision. It gives morale a good kick in the pants and can also help make future decisions feel a little less intimidating.

⚠️ Watch out for: Hindsight bias , or the tendency to look back on events with the knowledge you have now and beat yourself up for not knowing better at the time. Even with careful thought and planning, some decisions don’t work out — but you can only operate with the information you have at the time. 

Making smart decisions about the decision-making process

You’re probably picking up on the fact that the decision-making process is fairly comprehensive. And the truth is that the model is likely overkill for the small and inconsequential decisions you or your team members need to make.

Deciding whether you should order tacos or sandwiches for your team offsite doesn’t warrant this much discussion and elbow grease. But figuring out which major project to prioritize next? That requires some careful and collaborative thought. 

It all comes back to the concept of satisficing versus maximizing , which are two different perspectives on decision making. Here’s the gist:

• Maximizers aim to get the very best out of every single decision.
• Satisficers are willing to settle for “good enough” rather than obsessing over achieving the best outcome.

One of those isn’t necessarily better than the other — and, in fact, they both have their time and place.

A major decision with far-reaching impacts deserves some fixation and perfectionism. However, hemming and hawing over trivial choices ( “Should we start our team meeting with casual small talk or a structured icebreaker?” ) will only cause added stress, frustration, and slowdowns. 

As with anything else, it’s worth thinking about the potential impacts to determine just how much deliberation and precision a decision actually requires. 

Decision-making is one of those things that’s part art and part science. You’ll likely have some gut feelings and instincts that are worth taking into account. But those should also be complemented with plenty of evidence, evaluation, and collaboration.

The decision-making process is a framework that helps you strike that balance. Follow the seven steps and you and your team can feel confident in the decisions you make — while leaving the darts and coins where they belong.

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Making decisions and solving problems are two key areas in life, whether you are at home or at work. Whatever you’re doing, and wherever you are, you are faced with countless decisions and problems, both small and large, every day.

Many decisions and problems are so small that we may not even notice them. Even small decisions, however, can be overwhelming to some people. They may come to a halt as they consider their dilemma and try to decide what to do.

Small and Large Decisions

In your day-to-day life you're likely to encounter numerous 'small decisions', including, for example:

Tea or coffee?

What shall I have in my sandwich? Or should I have a salad instead today?

What shall I wear today?

Larger decisions may occur less frequently but may include:

Should we repaint the kitchen? If so, what colour?

Should we relocate?

Should I propose to my partner? Do I really want to spend the rest of my life with him/her?

These decisions, and others like them, may take considerable time and effort to make.

The relationship between decision-making and problem-solving is complex. Decision-making is perhaps best thought of as a key part of problem-solving: one part of the overall process.

Our approach at Skills You Need is to set out a framework to help guide you through the decision-making process. You won’t always need to use the whole framework, or even use it at all, but you may find it useful if you are a bit ‘stuck’ and need something to help you make a difficult decision.

Decision Making

Effective Decision-Making

This page provides information about ways of making a decision, including basing it on logic or emotion (‘gut feeling’). It also explains what can stop you making an effective decision, including too much or too little information, and not really caring about the outcome.

A Decision-Making Framework

This page sets out one possible framework for decision-making.

The framework described is quite extensive, and may seem quite formal. But it is also a helpful process to run through in a briefer form, for smaller problems, as it will help you to make sure that you really do have all the information that you need.

Problem Solving

Introduction to Problem-Solving

This page provides a general introduction to the idea of problem-solving. It explores the idea of goals (things that you want to achieve) and barriers (things that may prevent you from achieving your goals), and explains the problem-solving process at a broad level.

The first stage in solving any problem is to identify it, and then break it down into its component parts. Even the biggest, most intractable-seeming problems, can become much more manageable if they are broken down into smaller parts. This page provides some advice about techniques you can use to do so.

Sometimes, the possible options to address your problem are obvious. At other times, you may need to involve others, or think more laterally to find alternatives. This page explains some principles, and some tools and techniques to help you do so.

Having generated solutions, you need to decide which one to take, which is where decision-making meets problem-solving. But once decided, there is another step: to deliver on your decision, and then see if your chosen solution works. This page helps you through this process.

‘Social’ problems are those that we encounter in everyday life, including money trouble, problems with other people, health problems and crime. These problems, like any others, are best solved using a framework to identify the problem, work out the options for addressing it, and then deciding which option to use.

This page provides more information about the key skills needed for practical problem-solving in real life.

Further Reading from Skills You Need

The Skills You Need Guide to Interpersonal Skills eBooks.

Develop your interpersonal skills with our series of eBooks. Learn about and improve your communication skills, tackle conflict resolution, mediate in difficult situations, and develop your emotional intelligence.

Guiding you through the key skills needed in life

As always at Skills You Need, our approach to these key skills is to provide practical ways to manage the process, and to develop your skills.

Neither problem-solving nor decision-making is an intrinsically difficult process and we hope you will find our pages useful in developing your skills.

Start with: Decision Making Problem Solving

See also: Improving Communication Interpersonal Communication Skills Building Confidence

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7 important steps in the decision making process

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. 

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.

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.

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. 

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.

​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.

Track key decisions with a work management tool

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.

Related resources

How to give and take constructive criticism

Data-driven decision making: A step-by-step guide

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How executives and individual contributors differ when it comes to AI

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7 Useful Steps in the Decision-Making Process (With Templates)

Praburam Srinivasan

Growth Marketing Manager

July 26, 2023

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Decisions are a fact of life—whether you have to decide what you want for dinner, which candidate to hire for your lead IT role, or what products to bring to market this year. Every single day we make choices that can lead to progress or result in consequences.

Behind those decisions is a complex multi-step process. 

Harnessing control over that process empowers your decision-making and leads to more successful outcomes. Not only do you learn how to make great decisions, but you also learn from bad decisions so you don’t make the same mistakes twice.

With this guide to the decision-making process, you’ll learn seven critical steps to making better decisions. We’ll cover the different types of decision-making methods you can leverage in your business.

Plus, we’ll highlight decision-making templates for your team to develop profitable products and meet company goals. 👀

What is the Decision-Making Process?

Rational decision-making model, intuitive decision-making model, recognition-primed decision model, creative decision-making model, vroom-yetton decision-making model, 1. identify the decision you need to make, 2. gather information internally and externally, 3. determine potential solutions, 4. weigh the evidence of each option, 5. make the final decision, 6. take action on your decision, 7. conduct a review, 1. decision-making framework document, 2. decision tree, 3. project management decision log, 4. decision log.

The decision-making process is a step-by-step procedure designed to create solutions to problems based on compiling information, examining the various options, and choosing how to proceed. 

From identifying the problem to reviewing all the options and implementing a plan of action, the seven-step decision-making process is well-suited for business decisions as well as more complicated personal choices. 🌻

Types of Decision-Making Methods

There are several different types of effective decision-making models, including rational, creative, and intuitive—to name a few. Choosing the right model depends on the level of your decision-making skills, the amount of time you have, the nature of the decision, and your overall decision-making strategy. 

Here’s a brief breakdown of the different models of decision-making to try to find possible solutions to your roadblocks. 🤔

A rational and informed decision model focuses on logically laying out all the different alternative solutions. It’s the most popular model but can also require a lot of time in terms of research. 

With this model, you’ll identify all potential solutions and then work through the pros and cons of each to make an effective decision. It’s the best model for addressing problems that have a big impact on projects or the business as a whole since it involves a thoughtful and methodical approach.

The intuitive model is all about making choices based on feelings and gut instincts. It’s ideal in situations where there are time constraints since you can act quickly. 

However, this approach is best reserved for experienced business decision-making personnel who’ve handled similar problems before. Since you aren’t working with data, you need to have prior experience with pattern recognition to leverage this effectively. 

This model blends the approaches of rational and intuitive methods, but the defining factor is that you only assess one possible solution, rather than all of the available alternatives. Here’s how this model works:

• Identify the problem
• Work through a solution, mentally visualizing the impacts and outcomes 
• Put the plan into action, if the anticipated result is acceptable

Again, this decision-making model is best suited for experts and business leaders. It’s ideal to use for situations where time pressures exist.

This decision-making approach combines parts of the rational model and the intuitive model. It starts by gathering information on the problem and coming up with potential solutions. Instead of breaking down the pros and cons of each, you let your intuition and subconscious take over, leading you to a course of action that’s then tested. 

This iterative problem-solving solution is ideal for brainstorming and experienced decision-makers like entrepreneurs.

The Vroom-Yetton model uses seven yes-or-no questions and five effective decision-making styles to guide you to the best decision. It’s one of the more complex models as you need to use a decision tree to get to the best option based on how you answer the questions and which style you choose. 

This model is best for teams and collaborative decision-making. The framework has built-in steps to segment work and assign responsibility for decision-making. 

7 Steps in the Decision-Making Process

Ready to discover a better way to make informed decisions? Work your way through this seven-step decision-making model when faced with a tough dilemma. From gathering information to weighing all the options, you’ll make better-informed decisions that can move the needle when it comes to your goals. ✨

The first thing you need to do is figure out what decision you’re trying to make. Maybe you have a roadblock when it comes to project execution or perhaps you have a shortage of resources.

Whatever it is, you need to clearly define the problem and scope of work before you even start thinking about solutions. To figure out what decision you need to make ask yourself the following questions: 

• What is the specific problem? Be wary of being too broad or lumping multiple issues together. Identify exactly what the issue is and which team members are directly affected
• Is there a goal tied to this decision? Prioritize any problems that are directly connected to project goals. Make the problem measurable so you can see how it affects the goal after you’ve made a decision
• How will you know if the decision made an impact? When making decisions, you expect results. Figure out how you will evaluate if the decision you made is the right one

Making informed decisions is almost always better than just making a random choice. This step of the decision-making process is critical to your success. 

Start by gathering relevant information internally. Look for past situations where your team or company handled a similar problem and came up with a solution. Review project documentation to gather insights into what led to the problem at hand. 

Work within your department and in related departments to collect historical data on similar issues and the decisions connected to them. Walk through their prior experience and note any insights or relevant information.

Then, go outside your organization to find available information. Market research is an excellent way to see if competitors are having similar issues. Review studies and consider working with a consultant if you want more information or expertise.

Once you have all the necessary information, it’s time to start reviewing the available options. In most cases, there will be more than one potential solution to the problem. Making the right decision will depend on your company’s needs and the market environment at any given time.

For example, let’s say you work as a marketing project manager and your goal this quarter is to increase conversions by 300%. Your possible options may be to invest in paid advertising, create new blog content, or run social media campaigns.

There are also scenarios where you may choose a couple of different decision-making models or solutions rather than just one course of action. Be careful of biases—particularly if you’ve worked on a similar problem in the past.

Just because a solution worked once before doesn’t mean it’s always the best choice in similar situations. ✍️

Now that you know your options, it’s time to start weighing the evidence to see what the best course of action is. Examine how your company or competitors have responded to similar situations in the past. 

Make a list of pros and cons for each of the options. Consider if any of them offer additional rewards alongside solving the problem at hand. To do this, use strategic planning templates and methods like SWOT analysis and decision matrices . 

Now is the time to make a final decision and choose a course of action. Based on the information you gathered and your review of all the options, decide how you want to proceed. 

Maybe you’ll combine aspects of a few different solutions. Perhaps you’ll choose one specific approach to solve the problem. Consider all the evidence, review the alternatives, and choose the best solution.

You’ve taken the time and effort to review your options and made a choice. Next, you need to create a plan and put it into action. 

Create a project plan laying out affected stakeholders and which team members will play a role. Address resource allocation and plan the budget to include your new solutions. Prioritize projects and tasks and highlight any dependencies that may affect the outcome of your course of action.

Create a clear framework of expectations for all team members, and identify decision-makers within the action phase. As Chris Small, the VP of Soundstripe, said , “Communication is easy when there is only one channel between decision and action.” 

Break tasks down into easy to manage phases and be sure to let everyone know who is responsible for which decisions and actions. ✅

Back in step one, you established metrics and evaluation criteria for the problem solutions. Gauge whether you made the right decision by conducting a review of the decision-making process.

Here are some questions to ask yourself at the end of the decision-making process:  

• Did you make a good decision?
• Did the decision have any negative impacts?
• How did the decision impact stakeholders?
• Was there a better solution?
• Was the problem solved?
• Where could you have done a better job in the decision-making process?

Taking action is important, but taking time to review your decisions is just as critical. Schedule a decision-making review into your project timeline  to gather intel on what worked and what didn’t. Collaborate with team members to discuss their views on the process and results.

Decision-Making Templates for Your Team

Ready to implement good decision-making processes? These decision-making templates from ClickUp make life easier whether you’re an owner in charge of business decision-making or a project manager leading a rockstar team. 💪

The Decision-Making Framework Document from ClickUp is an easy way to create a study for solving a problem and choosing the best solution. 

Fill out the template steps including identifying the problem, potential solutions, and impacts to the business. The framework lets you put all your ideas in one place, allowing for better analysis.

Use ClickUp’s Decision Tree to map out possible options and solutions on a visual whiteboard. This template is ideal for teams that are looking to promote internal discussions on the best approaches. 

Color-coded steps make it easy to identify roadblocks and challenges throughout the process. Best of all, the template is designed to be collaborative, so you can get input from various team members across departments.

With Clickup’s Project Management Decision Log , capture and track all decision-making processes in an easy-to-manage dashboard. Five different status options and three custom fields make it easy to see what stage of the process each decision is in. 

The four view types let you sort by the calendar to see what’s happening now or view the decision board for a broader overview.

Document decision criteria, monitor progress, and assess outcomes with ClickUp’s Decision Log . Designed as a comprehensive tool, it’s ideal for managing your rational decision-making process from start to finish. Use it to create a plan for problem solving within departments, at the company level, and on specific projects.

Master the Decision-Making Process With ClickUp

You make decisions every single day—and in business, it’s a critical component to meet goals. Spending time choosing the right approach based on your specific business needs is essential whether you’re a project manager or an entrepreneur. 

Whether you’re making important decisions that affect the company’s bottom line or looking for innovative ways to serve your customers, it’s vital to put thought into the decisions you make. Acting hastily can lead to mistakes, but proper processes like the seven-step framework and methods above can help make you a better decision-maker.

Set yourself and your team up for success, and get started by using ClickUp to empower your decision-making processes. From templates that make it easier to log decisions to decision trees to map out your thought process, you’ll find countless ways to make decisions more effectively. 🙌

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7 steps of the decision-making process

Reading time: about 4 min

• Identify the decision.
• Gather relevant info.
• Identify the alternatives.
• Weigh the evidence.
• Choose among the alternatives.
• Take action.
• Review your decision.

Robert Frost wrote, “Two roads diverged in a wood, and I—I took the one less traveled by, and that has made all the difference.” But unfortunately, not every decision is as simple as “Let’s just take this path and see where it goes,” especially when you’re making a decision related to your business.

Whether you manage a small team or are at the head of a large corporation, your success and the success of your company depend on you making the right decisions—and learning from the wrong decisions.

Use these decision-making process steps to help you make more profitable decisions. You'll be able to better prevent hasty decision-making and make more educated decisions.

Defining the business decision-making process

The business decision-making process is a step-by-step process allowing professionals to solve problems by weighing evidence, examining alternatives, and choosing a path from there. This defined process also provides an opportunity, at the end, to review whether the decision was the right one.

7 decision-making process steps

Though there are many slight variations of the decision-making framework floating around on the Internet, in business textbooks, and in leadership presentations, professionals most commonly use these seven steps.

1. Identify the decision

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.

If you need to achieve a specific goal from your decision, make it measurable and timely.

2. Gather relevant information

Once you have identified your decision, it’s time to gather the information relevant to that choice. Do an internal assessment, seeing where your organization has succeeded and failed in areas related to your decision. Also, seek information from external sources, including studies, market research, and, in some cases, evaluation from paid consultants.

Keep in mind, you can become bogged down by too much information and that might only complicate the process.

3. Identify the alternatives

With relevant information now at your fingertips, identify possible solutions to your problem. There is usually more than one option to consider when trying to meet a goal. For example, if your company is trying to gain more engagement on social media, your alternatives could include paid social advertisements, a change in your organic social media strategy, or a combination of the two.

4. Weigh the evidence

Once you have identified multiple alternatives, weigh the evidence for or against said alternatives. See what companies have done in the past to succeed in these areas, and take a good look at your organization’s own wins and losses. Identify potential pitfalls for each of your alternatives, and weigh those against the possible rewards.

5. Choose among alternatives

Here is the part of the decision-making process where you actually make the decision. Hopefully, you’ve identified and clarified what decision needs to be made, gathered all relevant information, and developed and considered the potential paths to take. You should be prepared to choose.

6. Take action

7. review your decision.

After a predetermined amount of time—which you defined in step one of the decision-making process—take an honest look back at your decision. Did you solve the problem? Did you answer the question? Did you meet your goals?

If so, take note of what worked for future reference. If not, learn from your mistakes as you begin the decision-making process again.

Tools for better decision-making

Depending on the decision, you might want to weigh evidence using a decision tree . The example below shows a company trying to determine whether to perform market testing before a product launch. The different branches record the probability of success and estimated payout so the company can see which option will bring in more revenue.

Visual Activities are a perfect choice for quickly synthesizing ideas and gaining consensus. Use these dynamic activities with your team members to turn qualitative feedback into actionable insights and easily make decisions in seconds.

A decision matrix is another tool that can help you evaluate your options and make better decisions. Learn how to make a decision matrix and get started quickly with the template below. 

You can also create a classic pros-and-cons list, and clearly highlight whether your options meet necessary criteria or whether they pose too high of a risk.

With these 7 steps we've outlined, plus some tools to get you started, you will be able to make more informed decisions faster . 

Explore additional strategies to help with your decision-making process.

About Lucidchart

Lucidchart, a cloud-based intelligent diagramming application, is a core component of Lucid Software's Visual Collaboration Suite. This intuitive, cloud-based solution empowers teams to collaborate in real-time to build flowcharts, mockups, UML diagrams, customer journey maps, and more. Lucidchart propels teams forward to build the future faster. Lucid is proud to serve top businesses around the world, including customers such as Google, GE, and NBC Universal, and 99% of the Fortune 500. Lucid partners with industry leaders, including Google, Atlassian, and Microsoft. Since its founding, Lucid has received numerous awards for its products, business, and workplace culture. For more information, visit lucidchart.com.

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