The 5-Step Decision-Making Framework
The 5-Step Decision-Making Framework
The 5-Step
Decision-Making
Framework
(make better decisions, fast)
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Step 1
Define the Decision
Clarity on what you need to decide prevents
wasted time on irrelevant details.
Actions:
• Ask Yourself: What is the decision I need to
make?
• Be Specific: Avoid broad, vague questions like
"What should we do?" Instead, define the exact
issue (e.g., "Should we allocate extra budget to
Project A?").
• Establish Urgency: Determine why this decision
needs to be made now.
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Step 2
Gather Key Information
Having the right information ensures your
decision is grounded in facts, not assumptions.
Actions:
• Identify Core Facts: What do I already know
about the situation? (e.g., deadlines, costs, team
capacity).
• Spot Missing Data: What crucial piece of
information do I need?
- If the data is unavailable, make a
decision based on existing insights.
• Avoid Overloading: Focus only on what’s
essential for this decision.
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Before we get to step 3:
Actions:
• List Options: Identify 2-3 realistic choices you
can take.
- Example: "Approve the budget," "Defer the
decision," "Decline the request."
• Weigh Consequences: For each option, quickly
ask:
- What’s the best outcome?
- What’s the worst outcome?
- What’s the most likely outcome?
• Eliminate Non-Starters: Remove options that
have unacceptable risks or lack feasibility.
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Step 4
Align with Goals and Values
Ensuring your decision aligns with
organisational priorities and values increases
long-term success.
Actions:
• Test Alignment: Ask:
- Does this support our team’s or
company’s goals?
- Does it align with our values and
mission?
• Think Long-Term: Will this decision create value
or solve problems beyond the immediate
situation?
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Step 5
Decide and Communicate
A clear, decisive action plan minimises
confusion and ensures swift execution.
Actions:
• Make the Call: Choose the option that balances
risks, rewards, and alignment.
• Be Clear and Concise: Communicate your decision
confidently to those impacted.
• Example: "We’re approving additional
budget for Project A to meet the deadline.
Let’s prioritise reallocation of resources."
• Set Next Steps: Define the immediate actions
needed to implement the decision.
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Leaders of the People
Decision. Made.
Remember:
1. Trust Your Instincts: Leverage your
experience and intuition for decisions where
complete data isn’t available.
2. Use the 80/20 Rule: Focus on the most critical
20% of information that will drive 80% of the
decision.
3. Be Willing to Revisit: A decision made fast can
be adjusted later if needed. Acting quickly doesn’t
mean acting rigidly.
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Leaders of the People
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