S2E02 - The Basics - What is a decision (and some common misconceptions)
In this enlightening episode of "Ask a Decision Engineer," host Michelle Florendo delves into the fundamental question: What is a decision? By exploring the definition and clearing up common misconceptions, Michelle provides listeners with a solid foundation for becoming better decision-makers.
“I see [decision-making] as the ability to live with intention, to actively create our future.”
We make countless daily decisions, from what to eat for breakfast to major life choices that shape our future. Yet, despite how central decision-making is to our lives, many of us have never stopped to consider what a decision truly is. This episode breaks down the essence of decision-making, challenging common misconceptions that might be holding you back from making clearer, more confident choices in your personal and professional life.
S2E2 | Basics: What is a Decision and Common Misconceptions
By tuning in, you'll gain a deeper understanding of the decision-making process that will transform how you approach choices, big and small. Michelle's insights will help you recognize where you have agency in your life, how to avoid common pitfalls like the sunk cost fallacy, and why breaking down big decisions into smaller steps can lead to better outcomes.
Whether you're grappling with a major life decision or simply want to improve your daily choice-making, this episode will provide you with a powerful new perspective on decision-making that you can apply immediately to live a more intentional, empowered life.
Table of Contents
Introduction: Defining a Decision [00:00:00]
Decision Taking vs. Decision Crafting [00:02:00]
Decisions as an Exercise of Agency [00:03:30]
The Forward-Looking Nature of Decisions [00:06:30]
Breaking Down Big Decisions [00:10:15]
Introduction: Defining a Decision [00:00:00]
Michelle defines a decision as "an exercise of free will." She emphasizes that decision-making is what sets humans apart from other animals and allows us to shape our future actively.
“Decisions are the difference between letting the world happen to us and making things happen in the world.”
Decision Taking vs. Decision Crafting [00:02:00]
Michelle distinguishes between two aspects of decision-making:
Decision Taking: The act of picking or choosing (the action taken)
Decision Crafting: The process of framing, identifying components, and thinking through the decision
She emphasizes that focusing on the decision crafting part can lead to better decision-making. Decision crafting involves identifying and digging into the different components of the decision, including the objectives, the options, and the information you have available.
Decisions as an Exercise of Agency [00:03:30]
Michelle highlights that decisions should focus on what we can control rather than what we can't. She provides an example from the coronavirus pandemic to illustrate how identifying areas of agency can help reduce stress and anxiety in uncertain times.
Focusing on Agency in Decision-Making
Identify areas where you have control
Recognize aspects that are beyond your control
Direct your energy and attention to areas of agency
Take action within your sphere of influence
“Where do you have agency? ... By doing so, [you can] relieve at least temporarily a lot of that stress about all of the things that you couldn’t control.”
The Forward-Looking Nature of Decisions [00:06:30]
Michelle emphasizes that decisions are about influencing future states and should not be overly influenced by past investments or experiences. She explains the sunk cost fallacy and provides examples to illustrate why decisions should be forward-looking.
Example: Career Change Dilemma
Scenario: A lawyer considering changing careers despite significant investment in law school
Decision: Whether to stay in law or pursue a different career path
Key point: The time, energy, and money already spent on the law degree cannot be recovered, so the decision should focus on future satisfaction and potential, not past investments
“Decisions are about the future. It’s about how is it that you can influence the future state?”
Breaking Down Big Decisions [00:10:15]
Michelle addresses the misconception that decisions are always large, life-determining choices. She explains that decisions can often be broken down into smaller, sequential decisions and that our lives are shaped by both macro and micro decisions.
“Life is the sum of the choices we make. You always have a choice. So take it.”
Key Takeaways
Decisions involve both the process (crafting) and the outcome (taking).
Focus on areas where you have agency when making decisions.
Decisions should be forward-looking and not influenced by sunk costs.
Big decisions can often be broken down into smaller, more manageable choices.
Our lives are shaped by both major decisions and daily micro-decisions.
