UNDERSTANDING THE PARETO PRINCIPLE (THE 80/20 RULE)

The Pareto principle states that for many outcomes, roughly 80% of consequences come from 20% of causes (the “vital few”). Other names for this principle are the 80/20 rule, the law of the vital few, or the principle of factor sparsity.

Management consultant Joseph Juran developed the concept in the context of quality control and improvement, naming it after Italian economist Vilfredo Pareto, who noted the 80/20 connection while at the University of Lausanne in 1896. In his first work, Cours d’économie politique, Pareto showed that approximately 80% of the land in Italy was owned by 20% of the population. The Pareto principle is only tangentially related to Pareto efficiency. More generally, the Pareto Principle is the observation (not law) that most things in life are not distributed evenly. It can mean all of the following things:

The Uneven Distribution

What does it mean when we say that things aren’t distributed evenly? The key point is that each unit of work (or time) doesn’t contribute the same amount. In a perfect world, every employee would contribute the same amount, every bug would be equally important, every feature would be equally loved by users. Planning would be so easy. But that isn’t always the case.

The 80/20 principle observes that most things have an unequal distribution. Out of 5 things, perhaps 1 will be good. That good thing/idea/person will result in majority of the impact of the group. Of course, this ratio can change. It could be 80/20, 90/10, or 90/20 (the numbers don’t have to add to 100 even). The key point is that most things are not 1:1, where each unit of input (effort, time, labour) contributes exactly the same amount of output.

The Upside of the 80/20 Principle

When applied to life and work, the 80/20 Rule can help separate the vital few from the trivial many. For example, business owners may discover the majority of revenue comes from a handful of important clients. The 80/20 Rule would recommend that the most effective course of action would be to focus exclusively on serving these clients (and on finding others like them) and either stop serving others or let the majority of customers gradually fade away because they account for a small portion of the bottom line.

The 80/20 Rule is like a form of judo for life and work. By finding precisely the right area to apply pressure, we can get more results with less effort.

An Everyday Example – Home Cleaning 

Let us say we are cleaning our house. Some people might approach this by distributing their effort evenly across a variety of tasks, including dusting, vacuuming, and mopping each room. But this probably is not very efficient — it would take many hours to get everything done. The Pareto Principle tells us that 80% of how clean our house appears comes down to 20% of our cleaning efforts. Again, we don’t need to work out exactly what 20% of our cleaning looks like. But we do need to ask questions like:

We might conclude that giving the house a quick vacuum, clearing away the bulk of the clutter, and dusting down the main surfaces makes a huge difference. Or perhaps we figure that visitors will spend most of their time in the living room and dining room, so we will focus on them and only give other rooms a cursory clean? But giving every mirror a perfect polish and removing every speck of dust from the house might not make such a big difference to the overall result. 

The Downside of the 80/20 Principle

We get one, precious life. How do we decide the best way to spend our time? Productivity concepts will often suggest that we focus on being effective rather than being efficient.

Efficiency is about getting more things done. Effectiveness is about getting the right things done. In other words, making progress is not just about being productive. It’s about being productive on the right things. But how do we decide what the right things are? The 80/20 Rule states that, in any particular domain, a small number of things account for the majority of the results. The point is that the majority of the results are driven by a minority of causes. There is a downside to the 80/20 principle, and it is often overlooked. To understand this pitfall, here is a story.

A Story: Audrey Hepburn- A New Path

Audrey Hepburn was an icon. Rising to fame in the 1950s, she was one of the greatest actresses of her era. In 1953, Hepburn became the first actress to win an Academy Award, a Golden Globe Award, and a BAFTA Award for a single performance- her leading role in the romantic comedy Roman Holiday. Even today, over half a century later, she remains one of just 15 people to earn an “EGOT” by winning all four major entertainment awards: Emmy, Grammy, Oscar, and Tony. By the 1960s, she was averaging more than one new film per year and, by everyone’s estimation, she was on a trajectory to be a movie star for decades to come.

But then something funny happened- she stopped acting. Despite being in her 30s and at the height of her popularity, Hepburn basically stopped appearing in films after 1967. She would perform in television shows or movies just five times during the rest of her life. Instead, she switched careers. She spent the next 25 years working tirelessly for UNICEF, the arm of the United Nations that provides food and healthcare to children in war-torn countries. She performed volunteer work throughout Africa, South America, and Asia.

Hepburn’s first act was on stage. Her next act was one of service. In December 1992, she was awarded the Presidential Medal of Freedom for her efforts, which is the highest civilian award of the United States.

The Shortcoming of the 80/20 principle:

For a moment, let us all Imagine it is 1967. Audrey Hepburn is in the prime of her career and trying to decide how to spend her time. If she uses the 80/20 Rule as part of her decision-making process, she will discover a clear answer- do more romantic comedies. Many of Hepburn’s best films were romantic comedies. They attracted large audiences, earned her awards, and were an obvious path to greater fame and fortune. Romantic comedies were effective for Audrey Hepburn.

In fact, even if we take into account her desire to help children through UNICEF, an 80/20 analysis might have revealed that starring in more romantic comedies was still the best option because she could have maximized her earning power and donated the additional earnings to UNICEF.

Of course, that’s all well and good if she wanted to continue acting. But she didn’t want to be an actress. She wanted to serve. And no reasonable analysis of the highest and best use of her time in 1967 would have suggested that volunteering for UNICEF was the most effective use of her time. This is the downside of the 80/20 Rule: A new path will never look like the most effective option in the beginning.

Optimizing for the Past or the Future

Let us look at another example. Jeff Bezos, the founder of Amazon, worked on Wall Street and climbed the corporate ladder to become senior vice-president of a hedge fund before leaving it all in 1994 to start the company. If Bezos had applied the 80/20 Rule in 1993 in an attempt to discover the most effective areas to focus on in his career, it is virtually impossible to imagine that founding an internet company would have been on the list. At that point in time, there is no doubt that the most effective path—whether measured by financial gain, social status, or otherwise—would have been the one where he continued his career in finance.

The 80/20 Rule is calculated and determined by our recent effectiveness. Whatever seems like the “highest value” use of time in any given moment will be dependent on our previous skills and current opportunities. The 80/20 Rule will help us find the useful things in our past and get more of them in the future. But if we don’t want our future to be more of the past, then we need a different approach. The downside of being effective is that we often optimize for our past rather than for our future.

The Way Forward

Given enough practice and enough time, the thing that previously seemed ineffective can become very effective. We get good at what we practice. When Audrey Hepburn dialed down her acting career in 1967, volunteering didn’t seem nearly as effective. But three decades later, she received the Presidential Medal of Freedom—a remarkable feat she is unlikely to have accomplished by acting in more romantic comedies.

The process of learning a new skill or starting a new company or taking on a new adventure of any sort will often appear to be an ineffective use of time at first. Compared to the other things you already know how to do, the new thing will seem like a waste of time. It will never win the 80/20 analysis. But that doesn’t mean it’s the wrong decision.

Content Curated By: Dr Shoury Kuttappa

THE PATH TO ACCOUNTABILITY: BEHAVIORS ASSOCIATED – CHAPTER 02

***Continued from Chapter 01 (Covered previously: Meaning & Interpretation Of Accountability, The Blame Game, Its Impact)

Link to Chapter 01:

THE PATH TO ACCOUNTABILITY: BEHAVIORS ASSOCIATED – CHAPTER 01

The demand for rights has become extremely popular, but when it comes to  dealing with responsibility and accountability, we lag far behind, a gap that accounts for increase in  blaming and rights proclaiming, but very few instances of personal responsibility and accountability. The better the case for victimization, the more visibility and exposure we get, and, consequently, the greater the psychological or monetary reward we receive.

The “blame game,” and the “thirst for exposure,” are just two symptoms of a widespread “responsibility avoiding” syndrome, which have afflicted individuals, groups and organizations as well. A majority of people in organizations today, when confronted with poor performance or unsatisfactory results, immediately begin to formulate excuses, rationalizations, and arguments for why they cannot be held accountable for the problems.

Ways To Move Away From The Blaming

What is the accountability ladder and why is it important?

As is with all behavior – it starts with the leadership. The level of accountability within an organization is directly related to the level of accountability that the leaders display. Leaders can never afford to forget the actions that they initiated or created. It is not good enough to ask someone to do something and then ‘forget’ to ask if it was done or for an update on the progress of the action. If we do, the underlying message we are communicating is that the action was not important. Accountability starts at the top. The state of accountability is a reflection of the leadership culture.

So how do we move towards a positive accountability culture – how do we help people to become more accountable? The first thing is to establish where ‘the locus of control’ exists in the organization. Do people ‘feel’ like they have permission to be accountable or are all decisions made by the leadership?

Accountability and Engagement.

Next is the relationship between accountability and engagement. Getting our people engaged in their work is an important aspect of accountability and sets the stage for a healthy, productive work environment. The level of ownership someone takes for the job they do is key. An engaged employee can yield up to 57 percent more discretionary effort than one who is not engaged. Three important strategies for creating employee engagement include:

WIIFM (What’s in it for me?)

Once the stage is set, and we have created the most productive and positive work environment we can, we need to understand employee motivation, both extrinsic and intrinsic.

The Accountability Ladder

The accountability ladder could be described in eight steps broken in two groups; accountable or victim behaviors. These are:

1. I don’t know: No accountability – management and workforce has no clue about unhappy customers or loss.
2. Excuse: More excuses and fewer results – It is mainly due to lack of focus and low productivity.
3. Wait and hope: Expecting results without communicating requirements
4. Blame others: Blame game – play the victim and find someone or something for cause of failure.
5. Acknowledge reality: Recognize the level of workload or tasks required for business growth.
6. Own it: Take responsibility and commit to business goals.
7. Find solution: Take ownership of situation and ability to handle issues professionally.
8. Make it happen: Develop innovative products and achieve breakthrough goals.

The Line between Victimization & Accountability

The roots of victimization stems from its subtle system of belief that people cannot become what they desire to become because of their circumstance. People and organizations find themselves thinking and behaving below the line whenever they consciously or unconsciously avoid accountability for individual or collective results. Stuck in these victim behaviors, they begin to lose their spirit and will, until, eventually, they feel completely powerless.

Only by moving above the line and climbing the steps to accountability can we become powerful again. Rather than face reality, sufferers of this malady oftentimes begin ignoring or pretending not to know about their accountability, denying their responsibility, blaming others for their predicament, citing confusion as a reason for inaction, asking others to tell them what to do, claiming that they cannot do it, or just waiting to see if the situation will miraculously resolve itself.

Accountability for results rests at the very core of the total quality, people engagement and empowerment, and continuous improvement. The essence of it therefore is getting people to become personally accountable – rising above their circumstances and doing whatever it takes (within the bounds of ethical behavior) to get the results they want.

Neither individuals nor organizations can stay on the line between these two realms because events will inexorably push them in one direction or the other. While both people and organizations can have accountability in some situations and victim behavior in others, some issue or circumstance will arise to influence them to think and act from either an above the line or below the line perspective. Even the strongest commitment to accountability will not prevent us from ever falling below the line. That sort of perfection is not humanly possible. But those who are truly accountable never remain there for long.

Where Are We:

We can take a moment to identify where we are on this ladder. Here are a few pointers that may help:

Moving Up the Ladder – So how do we get others or ourselves above the line? Take a few moments to answer the following questions:

What did we notice about these questions? They are all positively focused. Spending the time to answer them may give us a new perspective or place to focus our emotional energy. These are also great questions to ask our people if we feel they are struggling below the line. Questions like these can really open up discussion and help someone refocus.

All of us have been below the line. All of us know what it is like to feel as if we are being treated unfairly and are trapped in our current circumstances. The Accountability Ladder is a great way to diagnose where we are. The ability to understand and help individuals work through the reasoning of why living “Below the Line” can cause undue stress and overall misery; can help them move to a position that may be healthier and happier in the long run.

Ways to Imbibe Personal Accountability

Guiding People to get them Above the Line:

There are five steps to follow when guiding others above the line. These include:

The most critical piece of this is number three. After we have spent time listening and acknowledging the current challenges, the question we need to ask them is, “Given our current circumstances, what else can we do to move forward?” This helps shift them from victim mode to action. Once they begin to talk about what else can be done, make sure to provide the feedback and the support they need to move ahead.

Content Curated By: Dr Shoury Kuttappa

THE PATH TO ACCOUNTABILITY: BEHAVIORS ASSOCIATED – CHAPTER 01

Most people view accountability as something that happens to them or is inflicted upon them, choosing to perceive it as a heavy burden to carry. In fact, many people think about accountability as a concept or principle to be applied only when something goes wrong or when someone else is trying to determine cause and pinpoint blame. Often, when things are moving along smoothly and failure has not yet set in, people rarely ask “Who is accountable for this or that?” It seems that only when the boat is filling up with water or the fire is out of control do people start looking around for the responsible party.

The Oxford Advanced Learner’s Dictionary defines accountability as “the fact of being responsible for your decisions or actions and expected to explain them when you are asked”. This in itself is a slightly negative connotation of accountability. “……..to explain them when you are asked’- implying a post-op view with little choice to the state of accountability. This confession-oriented and powerless definition suggests that accountability is a state someone arrives at after the event. Here is another definition:

This implies that accountability is the process of owning it and doing it. It requires a level of ownership that includes proactively taking charge of commitments. It is a perspective that embraces both current and future efforts rather than reactive and historical explanations.

The Blame: Whose Fault is it

Imagine this. We are babysitting two kids. And they are running around pushing each other and doing the usual obnoxious things. Then suddenly we hear a crash. In the next room, a super sacred one million rupees worth vase that the wife’s grandma made with her bare hands during the her toughest times is knocked off the table and lies on the floor in a thousand pieces.

What happens? The two kids immediately point blame the other. They present their cases. They start whining and cutting each other off. Now, let’s say one of them is a little naughty and violent and we have a hunch that it’s probably his fault anyway (bias). What do we do? Nothing. We either punish them both, or do nothing.

None of this changes the fact that both of them were running around and being reckless near nice precious objects, or the fact that theoretically, both were behaving negligently enough to cause destruction. It also does not change the fact that the vase is broken and is never coming back. One could even argue that it’s our fault for putting such a valuable item in a vulnerable place around kids. We spend a lot of our time and effort looking for whose fault something is, even when it doesn’t matter.

Here is another instance. We order a nice steak at a restaurant and it arrives under-cooked after a long wait. We want to blame the cook so we call the manager over and go on a tirade. But who knows, maybe the steak was poorly prepared by someone else, or the steak was not stored correctly the night before, or it was a faulty supply. Or maybe they tried buying from a faulty supplier. Or maybe there is a poor system of communication in the restaurant and so misunderstandings are prevalent and this affects how the food is prepared. But no, the cook was at fault, and needs to be made aware of the blame. As humans, we all enjoy a scapegoat; we need a scapegoat.

We see this most often with the government. An entire bureaucratic system may be at fault, causing continuous waste and inefficiency, but a few people get blamed and fired and the system continues. The public is satisfied. Someone is blamed and punished, so everything must be right again.

What is Personal Accountability?

Personal accountability is being willing to accept the consequences resulting from our choices, actions, or behaviors. Being personally accountable means owning the situations that we have been a part of. This means taking responsibility for the outcome, whether it is good or bad, and doing our best to rectify the situation. While it can be challenging to assert accountability, especially when the situation is not good or we have failed on a task, it is in these situations when personal responsibility matters most. By taking ownership of the situation, action, or choice, we build:

When we show that we are trustworthy, dependable, and willing to take ownership even when things fail, we become someone senior colleagues can depend on and will earn leadership opportunities. There are times when it’s important to know whose fault it is. Like when engaging in chemical warfare. Or finding out who pissed on the toilet seat. But in most of the cases in our lives, it’s an inconsequential distraction. And it is based largely on ego gratification and little on actual life improvement.

What Is the Blame Game?

When something goes wrong and we feel threatened, it’s natural to want to defend ourselves against any repercussions. We might find ourselves scape-goating or trying to shift the blame elsewhere. We may try to distance ourselves from a problem, fearing that taking responsibility for errors or mistakes could harm our careers or make us look bad. But this approach doesn’t solve anything. Shifting the blame will not help us fix the problem that caused the delay. Sometimes it is all too obvious when a team is playing a blame game. But it can happen in more subtle ways, too, like:

The Impact of Blame

Blaming others can have a detrimental effect on morale and performance. Team members may feel belittled or humiliated if they’re pinpointed for blame – especially if it is not their fault.

A culture of blame may also lead to individuals or teams being scapegoated when the real problem may lie elsewhere, or have a number of causes. It is easier to blame someone in another department or building than it is to point the finger at someone we sit with every day.

Over time, this type of scapegoating may even perpetuate bias or prejudice, or lead to accusations of discrimination. Also, it can damage the integrity of other team members who witness it, especially if they do nothing to stop it. “Passing the buck” can deplete trust with stakeholders. Conversations along the lines of, “Well, that is the finance team’s fault, not ours, so I cannot help you” can make the whole company seem incompetent.

Blame can also stunt creativity and innovation within the organization – if people are afraid to try new things in case they do not work out, this can reduce team and company performance in the longer term. Finally, some individuals may be prone to accepting blame where it is not warranted. A protective manager, for example, may “take the rap” for someone else’s mistake. Or, an individual who is highly self-critical may view everything as their fault, even when it is not.

***To be continued in Chapter 02 (Ways To Move Away From Blaming, Accountability & Engagement, Accountability Ladder, Victimization & Accountability, Guiding To Rise Above Accountability) Link to Chapter -02:

THE PATH TO ACCOUNTABILITY: BEHAVIORS ASSOCIATED – CHAPTER 02

Content Curated By: Dr Shoury Kuttappa.

CHOICE ARCHITECTURE: ENHANCEMENT OF HUMAN DECISIONS

We may assume that humans buy products because of what they are, but the truth is that we often buy things because of where they are. For example, items on store shelves that are at eye level tend to be purchased more than items on less visible shelves.

Here’s why this is important – Something has to go on the shelf at eye level. Something must be the default choice. Something must be the option with the most visibility and prominence. This is true not just in stores, but in nearly every area of our lives. There are default choices in our office, car, kitchen and in our living room. If we design for default in our life, rather than accepting whatever is handed to us, then it will be easier to live a better life. In the book Nudge, authors Richard Thaler and Cass Sunstein explain a variety of ways that our everyday decisions are shaped by the world around us.

Designing for Default:- . . . Although most of us have the freedom to make a wide range of choices at any given moment, we often make decisions based on the environment we find ourselves in. Consider how our default decisions are designed throughout our personal and professional life. Some examples may be:

Choice Architecture

Researchers have referred to the impact that environmental defaults can have on our decision making as choice architecture. Choice architecture is the design of the different ways to present choice options to a chooser. This presentation will influence the final choice made. Lets look at this with a simple dinner party example. Suppose we are invited to a friend’s house for the evening with dinner. As the evening begins, we notice that there is a large bowl of French fries put out before us. We have three choices:

For someone with limited self-control when it comes to food, choice number C is doubtful. Choice number A and B are both plausible as well. As it becomes obvious that the French fries are being consumed in its entirety, the host removes the bowl. With the bowl gone, the guests will maintain a sufficient appetite to enjoy all of the food that will follow. The question is, how could we all possibly be relieved when our choice to eat the fries had been taken away? In the land of economics, it is against the law for us to be happy about this.

If the bowl of fries was left, all of it would have been consumed. When the bowl was taken away, we all sighed in relief over the fact we had no fries to eat. How could we change our mind in the space of say fifteen minutes or so in regards to what we wanted? Our decision was being made in an environment where there are many features – both noticed and unnoticed – influencing our final choice. In this scenario, the host architected the environment, to create new surroundings. With no fries bowl, all decide by default that choice C was the better (and healthier) option.

Choice architecture as a concept was born from the discipline of behavioral economics. This discipline shows that individuals tend to be subject to predictable biases. These common and predictable biases are termed as elements. The six choice architecture elements are:

Approaches to Enhance Our Default Decisions

Simplicity. It is hard to focus on the signal when we are constantly surrounded by noise. It is more difficult to focus on reading a blog post when you have 10 tabs open in your browser. It is more difficult to accomplish your most important task when you fall into the myth of multitasking. When in doubt, eliminate options.

Visual Cues. In the supermarket, placing items on shelves at eye level makes them more visual and more likely to be purchased. Outside of the supermarket, we can use visual cues like the Paper Clip Method or the Seinfeld Strategy to create an environment that visually tracks our actions in the right direction.

Opt-Out vs Opt-In. There is a famous organ donation study that revealed how multiple European countries skyrocketed their organ donation rates: they required citizens to opt-out of donating rather than opt-in to donating. We can do something similar by opting our future self into better habits ahead of time. For example, we could schedule a yoga session for next week while we are feeling motivated today. When the workout rolls around, we have to then justify opting-out rather than motivating ourselves to opt-in.

Designing for default comes down to a very simple premise: shift the environment so that the good behaviors are easier and the bad behaviors are harder.

Fear-Based Decision Making
Fear-based decision making is when we let our fears or worries dictate our actions (or our lack of action). Some examples may be:-

Considerations on Overcoming Fear-Based Decisions

Stepping out of the Comfort Zone is important. If we fail inside our comfort zone, it’s not really failure, it’s just maintaining the status quo. If we never feel uncomfortable, then we are never trying anything new.

Also, Just because we don’t like where we have to start from doesn’t mean we should not get started. Feelings of fear and uncertainty have a way of making us feel unprepared. Some instances are:-

Here’s a tough question that forces us to consider the opposite side: How long will we put off what we are capable of doing just to maintain what we are currently doing?

We may need to stop making uncertain things, certain. Just because someone else got rejected from that job doesn’t mean we will too. Maybe we tried to lose weight before, but that doesn’t mean we cannot lose it now.

The More We Limit Ourselves, the More Resourceful We Become

We have a tendency to see boredom as a negative influence and we often use boredom as justification to jump continually from thing to thing. One is weary of living in the country and moves to the city; one is weary of one’s native land and goes abroad; one is weary of Europe and goes to America, etc.

The assumption that often drives these behaviours is that if we want to find happiness and meaning in our lives, then we need more: more opportunity, more wealth, and more things. We start to believe that moving somewhere new will remove the messiness of life. Or, that if we just lived in a new location or had a new job, then we would finally be granted the permission and ability to do the things we always wanted to do. Sometimes the life we are looking for can be found embracing less, not more.

A solitary prisoner for life is extremely resourceful; to him a spider can be a source of great amusement. History is filled with examples of people who embraced their limitations rather than fought them. Ingvar Kamprad only had enough money to start a business selling match sticks. He turned it into IKEA. Richard Branson has built 400 businesses despite having dyslexia. Dhirubhai Ambani began as an errand boy at a petrol bunk. Our limitations can provide us with the greatest opportunity for creativity and inventiveness.

It can be easy to spend our life complaining about the opportunities that are withheld from us and the resources that we need to make our goals a reality. But there is an alternative. We can use these constraints to drive creativity. We can embrace the limitations to foster skill development. The problem is rarely the opportunities we have, but how we use them.

The only thing needed to begin a new life is a new perspective. The more we limit ourselves, the more resourceful we become.

Content Curated By: Dr Shoury Kuttappa

DECISION MAKING: COGNITIVE BEHAVIORS INVOLVED – (CHAPTER 02)

***Continued from Chapter 01 (Covered previously: Decision Making, its styles, different Cognitive Biases)

Link to Chapter 01:

https://shouryoryx.wordpress.com/2022/02/08/decision-making-cognitive-behaviours-involved-chapter-01%ef%bf%bc

Common Patterns in Decision Making

The upside of understanding various patterns in decision-making is that they lead us to think about how the mind preforms its many complex functions in countless situations and how our awareness of time, space, and the various narrative and cognitive frameworks can help decode the factors that shape our decisions.

Here is a graphic presentation of what author Venkatesh Rao puts forward in his book. The graphic shows “Information Location” across the x-axis going from Internal to External and “Visibility of Mental Models” on the y-axis going from Low to High.

The distinctions among the four classes of basic decision patterns (above) are not arbitrary. They are based on the distribution and visibility of situational information. Information originates either in the decision-maker’s head or in the environment, and we either consciously recognize or are oblivious to the influence it has on our behaviour. 

The ethical principles of decision making vary considerably. Some common choices of principles and the methods which seem to match them include:

Path dependency

Path dependence is when the decisions presented to people are dependent on previous decisions or experiences made in the past. Path Dependence exists when the conditions for decision making is not based on current conditions, but rather has been formed by a sequence of past actions each leading to a distinct outcome. A common example is in Performance Management Systems.

Decision making in groups

Decision making in groups is sometimes examined separately as process and outcome. Process refers to the group interactions. Some relevant ideas include coalitions among participants as well as influence, consensus and persuasion. In addition to the different processes involved in making decisions, group decision support systems (GDSS- protocol a group uses to choose among scenario planning alternatives) may have different decision rules, like:

Other less desirable group decision rules (group think) are:

Plurality and dictatorship are less desirable as decision rules because they do not require the involvement of the broader group to determine a choice. Thus, they do not engender commitment to the course of action chosen. An absence of commitment from individuals in the group can be problematic during the implementation phase of a decision.

Decision making in one’s personal life

Some of the decision making techniques that we use in everyday life include:

Decision making in healthcare

In the health care field, the steps of making a decision are explained by the SHARE model:

Decision making in business and management

Ideally, business and management systems may be set up to allow decision making at the lowest possible level. There is literature available on many models, some of which include:

Data-based business decision making may include the following cycle:

Caveat: There are no perfect decision making rules. Depending on how the rules are implemented in practice and the situation, all of these can lead to situations where either no decision is made or to situations where decisions made are inconsistent with one another over time.

Content Curated By: Dr Shoury Kuttappa.

THE LONG VIEW (OR) BIG PICTURE THINKING – CHAPTER 02

***Continued from Chapter 01 (Covered previously: What Is Big Picture Thinking, Importance Of Big Picture Thinking, Detail Oriented Or A Big Picture Thinker- The Difference)

Link to Chapter 01:

THE LONG VIEW (OR) BIG PICTURE THINKING – CHAPTER 01

Identifying the Different Approaches – Approach Indicators

No matter which field we belong to – an aspiring entrepreneur, someone who’s putting together a dream team, or polishing our leadership skills, big picture thinking can help open up, innovative and unexpected creative paths, ideas and solutions.

Detail-Oriented Approach Indicators

• We prefer tweaking an existing plan than creating one from scratch
• We think over issues in such great detail that we sometimes miss the bigger picture
• We end up putting down or highlighting almost all notes
• We work towards high-quality work in most areas of our life and struggle with perfectionist tendencies
• We’re organized and/or like routine

Big Picture Approach Indicators

• We can easily spot patterns in problems
• We have a low tolerance for busywork, tedious errands, and routine
• We are good at figuring out an overview of strategies to get something done
• We get bored when we have to deal with the tiny details of a project
• People view us as incredibly creative and we like to come up with original ideas
• We don’t obsess over little details and therefore, solve problems fairly quickly

The Balance: Big Picture & Detailed Orientation- Components in Business

Strategies Towards a Big Picture Focus

A) Identify habits that limit our big picture thinking ability:. . . Our natural preferences often prevent us from blue sky thinking. So, the first step: break bad habits. Here’s a 3-step framework:

B) See things from a different lens: . . . Diving into big picture questions helps us connect the dots from our actions/tasks to the big goal. In this book, The Magic of Thinking Big, David J. Schwartz calls this, “see what can be, not just what is.” A good starting point is to ask ourselves, ‘what am I trying to achieve?’ Some big picture questions may be:

C) Think big by looking up: . . . The super basic rundown is that whenever we are focusing on the big picture, look up. And look down when not seeing the big picture.

A nice example of chunking reasoning is to think of transport. We can start with a motor car. If We chunk down, We might go to wheel, then rim, then rubber, then tread and even road. If We chunk up, We might go to transport, then to travel, then to vacation, then to wellbeing, etc.”

D)  Use bulleted lists to think big: . . . This is a trick many of use on a regular basis – making a bulleted list of the big picture and then adding sub-bullets to each pillar step. We can then step back and look at what can be added or removed from the sub-bullet pointers to keep the needle moving forward.

So why did this work? Because bullet points give us the visuals on the big picture. It’s challenging to connect the dots when we can’t see them. It’s also tough to translate the big picture if we don’t have it in front of us. What’s more, bullet points are easy to access and revise anytime. This, in turn, provides clarity.

E) Start journaling / mind mapping: . . . When we put our internal prattle on paper, we can easily spot where we are flailing or how it can be shaped to fit the bigger picture. To begin with, note down the big picture, followed by the small details pestering us. The trick is to make sure that it represents not only the big picture, but that it represents the detail, or actionable elements as well. Then record our thoughts to see if they deviate from the big picture plan. 

F) Schedule in some thinking time: . . . Often, when we rush to make a decision, we end up feeling sorry about it. When this happens, it’s usually for one of three reasons:

If we find ourselves nodding yes to any or all of these points, pencil in some uninterrupted, thinking time to our schedule. This space is crucial to making better decisions that rely on the big picture. We will also be able to rate our priorities better – what matters in the big picture, how it contributes to the big picture and so on. This will help us to stop hustling so hard, and ditch the shiny object syndrome.

Self Reflection- The Key

If we pause and contemplate how we are doing, we can make small tweaks that help us stay consistently productive. Some pointers to reflect on may be:

When we are busy executing any tasks in our lives for far too long, it’s easy to forget the details or the big picture depending on the type of thinker we are. For instance, as a big picture thinker, we may be excited by how our old and new ideas are connecting and work on outlining them, forgetting that the ideas have to be structured by many crucial details to work in the long term. The details person on the other hand might be buried in unending to-do-lists, feeling secure in the routines only to be disrupted by an enormous transition they didn’t anticipate.

Content Curated By: Dr Shoury Kuttappa

OVERTHINKING: COGNITIVE MANIFESTATIONS

Thoughts are powerful. They become reality. Whatever we hold in your mind on a consistent basis is exactly what we will experience in life. All humans have patterns to their behaviour. These patterns develop over time based on life experiences. And just as patterns are learned, they can also be unlearned.

What Is Overthinking?

The classic overthinking definition is, “to think about something too much or for too long.” While it’s human nature to think things through when making a decision or evaluating a situation, it becomes overthinking when you can’t get out of your own head, worrying about the future or ruminating about the past. Overthinking a tough decision that needs to be made can also cause problems. Replaying all the options in the head can lead to “paralysis by analysis”.

Why Do We Overthink?

Often overthinking is a by-product of anxiety or depression. Often overthinking only materializes when we need to make a tough life decision or when we are dealing with insecurities. If overthinking is not a symptom of a deeper emotional issue, it can often be addressed by changing thoughts and mindsets.

How To Stop Overthinking

Know that overthinking and problem solving aren’t the same thing:
Constantly ruminating and going over scenarios and possibilities often disguises itself as problem solving. It feels like doing something good and useful. Recognize when you’re overthinking something, don’t act like it’s problem solving, and press fast-forward.

Remember the 90-10 rule:
This is a formula, a ratio, for how to value ourselves, based on 90 percent self-worth, 10 percent assigned worth. Ninety percent should come from self-acceptance and self-appreciation, and just 10 percent from external validation. Overthinkers distort the formula, even reversing it by acting like 90 percent of their worth comes from what others think or say. So they worry, which takes the form of overthinking.  

Reopen the door only when new information knocks:
Overthinking goes into overdrive when we keep revisiting decisions we make, refusing to close the door on a call that has been made. Believe that you’ve done your due diligence, and revisit something you’ve already decided only when you’re presented with new information.

Assume good intent:
Overthinkers read too much into things. They are assuming something bad lies underneath, something like a bad perception, someone wishing them ill, or an unfavourable outcome. When this happens, switch the assumption to what is well-intended, or at least neutral.

Embrace informed ignorance and uncertainty:
We can’t read the future, we can’t read minds, and we can’t know everything. When we don’t know something, we tend to fill in the blanks, often with worthless assumptions. One of human tendencies is that we would rather be unhappy than uncertain. These assumptions can take many forms, all infusing themselves into the inner monologue of the overthinker. Try to replace “what if” with “we’ll see.” Another way to handle uncertainty could be the OAR:

1. Observe uncertainty, don’t overreact to it.
2. Acknowledge the presence of uncertainty and accept that impermanence is inevitable.
3. Realize that uncertainty brings benefits, like unleashing creativity and resilience.

Finding clarity in this way usually only takes a few minutes and bit of energy and it can save you a lot of time and suffering.

Stop framing the unremarkable as catastrophic:
This means stop taking small details and turning them into questionable conclusions. We often feel the need to overthink because we simply fear being wrong. Stop making a mountain out of a molehill. Ask yourself in such moments what the realistic cost of being wrong is. When you can lower the stakes, you raise your ability to get mentally unstuck.

Put things into a wider perspective.

It’s very easy to fall into the trap of overthinking minor things in life. So when you are thinking and thinking about something ask yourself: Will this matter in 5 years? Or even in 5 weeks? Widening the perspective by using this simple question can quickly snap us out of overthinking and help to let go of that situation. Get outside it and switch gears to connect with what’s going on around you so you can take joy in it.

Set short time-limits for decisions.
If we do not have a time-limit for when we must make a decision and take action then it can just keep turning our thoughts around and around for a very long time. Setting deadlines for when to complete the decision and spring into action can help to work around this.

Realize that you cannot control everything:
Trying to think things through 50 times can be a way to try to control everything. To cover every eventuality so you don’t risk making a mistake, fail or looking like a fool. But those things are a part of living a life where we truly stretch our comfort zone. Stop trying to control everything. Trying to do so simply doesn’t work because no one can see all possible scenarios in advance. This is of course easier said than done. So do it in small steps if you like.

Spend more of your time in the present moment:
By being in the present moment in our everyday life rather than in the past or a possible future in our mind we can replace more and more of the time we usually spend on overthinking things with just being here right now instead. Some ways that can help to reconnect with the present moment are:

1. Slow down how you do whatever you are doing right now. Move slower, talk slower or ride your bicycle more slowly for example.
2. Disrupt and reconnect. If you feel you are getting lost in overthinking then disrupt that thought (for example, by – in your mind – shouting this to yourself : STOP), then reconnect with the present moment by taking just 1-2 minutes to focus fully on what is going on around you.

Spend more of your time with people who do not overthink things.
Our social environment plays a big part. And not just the people and groups close to us in real life, but also what you read, listen to and watch. The blogs, books, forums, movies, podcasts and music in our life. So think about the sources in life that encourages and tends to create more overthinking in your mind. And think about what people or sources that has the opposite effect on you. Find ways to spend more time and attention with the people and input that have a positive effect on our thinking and less on the influences that tends to strengthen your overthinking habit.

Content Curated By: Dr Shoury Kuttappa