Sunday, March 21, 2010

How decision makers manage complex situations by combining rational analysis with intuition. Based on study of 119 oil compaany’ CEO, it identifies two process used by the most effective CEO which are integration by essentials (IBE ) and spiraling. Besides using these processes, the effective CEO shared three thinking related traits, focus, motivation and self awareness.

The differences between ffective and not so effective CEOs approaches to decision making scenarios are the
Engaging and focus with fact
Take overview and then zoom in to the most feasible alternative
Intuition based on knowledge integrated bu essential
Identitifying whats essential to decision situation
Spiralling to refine decision
Knowlegde integrated into principle based on essential (IBE)
Focus on the forest and trees.
The effective CEOs were very aware of their own decision making approach.


Implication for practice

Decision makers can cultivate good minds or improve the effectiveness of thinking at the work place

Is to look for essential , identifying the essence of every fact or even one encounters is the key to effective thinking.

Identify and apply principles, integrating by asking principle involved, the general guidelines govern the achievements of goals. Once principles is applied, it can be applied to the situation, making decision fast and effectyive . The more ones identidfies and applies principles, the easier it becomes- and then the more effective one's decision making.
But one should note that principle is not a magic bullet and do not gurantee perfect decisions. When new knowlegde is discovered or developed, existing principles will be qualified or new ones will be induced.
Spiral to refine decisions. Analysing the decision situation by essentials (concepts and principles)ones can dgenerate general alternatives

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