S2E01 - What's wrong with decision making today
In this thought-provoking episode of "Ask a Decision Engineer," host Michelle Florendo explores why decision-making is so challenging in today's world and what can be done about it. Discover why traditional approaches to decision-making fall short and learn about the little-known field of decision engineering.
“Now that we live in an age where there is so much information out there, there’s a heightened expectation for people to digest the information so that they can make the best decision possible.”
Have you ever felt overwhelmed when faced with a big decision? You're not alone. In our fast-paced, option-filled world, decision-making has become increasingly complex and anxiety-inducing. From choosing a career path to deciding where to live or how to invest your time and money, the weight of these choices can feel paralyzing.
This episode dives into why decision-making in the modern era is so challenging and why our current tools and approaches often leave us feeling unprepared.
S2E1 | What's Wrong with Decision-Making Today?
By listening to this episode, you'll gain valuable insights into the root causes of decision-making anxiety and learn about more effective approaches to tackling complex choices. Michelle introduces the concept of decision engineering, offering a glimpse into how this emerging field can provide you with practical tools and frameworks to navigate decisions with greater confidence and clarity.
Table of Contents
Introduction and Opening Exercise [00:00:00]
The Anxiety Surrounding Decision-Making [00:00:45]
Lack of Decision-Making Education [00:01:30]
Society's Bias Towards "Picking" vs. Process [00:02:15]
The Increasing Complexity of Modern Decisions [00:03:30]
The Gap in Decision-Making Tools [00:04:30]
Descriptive vs. Normative Decision-Making Models [00:05:00]
The Promise of Decision Engineering [00:06:00]
Introduction and Opening Exercise [00:00:00]
Michelle Florendo opens the episode by inviting listeners to bring to mind a complex decision they're facing. She asks them to notice their bodily sensations, emotions, and thoughts that arise when considering this decision.
The Anxiety Surrounding Decision-Making [00:00:45]
Michelle shares an experience from a Stanford University class where students' responses to decision-making overwhelmingly included words like "anxious," "confused," "unsure," and "overwhelmed." She notes that this trend is consistent across various groups, from entry-level professionals to seasoned business leaders.
“The overwhelming number of Post-Its bore words like anxious, confused, unsure, overwhelmed.”
Lack of Decision-Making Education [00:01:30]
Michelle highlights a fundamental issue: despite being expected to make decisions daily, we're never taught how to make good decisions. She uses the common question asked of children, "What do you want to be when you grow up?" to illustrate how we often focus on the end result without considering the decision-making process.
“For something we’re expected to do every day, it’s kind of unbelievable that they don’t teach us in school how to make good decisions.”
Society's Bias Towards "Picking" vs. Process [00:02:15]
Using an example from the COVID-19 pandemic, Michelle illustrates society's tendency to prioritize immediate answers over understanding the decision-making process. She recounts a news conference where the California governor's explanation of the decision-making process for lifting shelter-in-place orders was met with backlash from those who just wanted to know the final decision.
The Increasing Complexity of Modern Decisions [00:03:30]
Michelle discusses how the modern world has dramatically increased both the number of decisions we face and the options available to us. She notes that the once-inspiring phrase "the possibilities are endless" now induces anxiety in many young graduates.
“We live in a time where decision-making processes are needed now more than ever. The number of decisions we make on a day-to-day basis has exploded.”
The Gap in Decision-Making Tools [00:04:30]
Despite the increased complexity of decisions and the vast amount of information available, Michelle points out that the most common decision-making tool remains the 200-year-old pro-con list. She suggests that more sophisticated tools are needed for today's decision-making challenges.
“So when I tell people that I studied decision engineering at Stanford, I’m not surprised that they want to know more. They ask me straight up: ‘Can you teach me how to make better decisions?’ There’s a hunger for [a] process because there’s such a gap right now.”
Descriptive vs. Normative Decision-Making Models [00:05:00]
Michelle explains the difference between descriptive decision-making models (which describe how people make decisions) and normative models (which prescribe how people should make decisions). She argues that while many popular books focus on descriptive models, what people really need are normative models to guide their decision-making process.
The Promise of Decision Engineering [00:06:00]
Michelle introduces decision engineering as a field that offers a process for untangling complex decisions. She promises to share simple yet impactful concepts in future episodes that can help listeners improve their decision-making skills.
Key Takeaways
Decision-making often causes anxiety because we lack formal education on how to make good decisions.
Society tends to focus on the end result of decisions rather than the process of making them.
The complexity and number of decisions we face have increased dramatically in modern times.
There's a significant gap between the sophisticated decision-making tools we need and the outdated ones commonly used.
Decision engineering offers promising solutions for improving decision-making processes.
