The luck of the wise decision
Very few people have learned how to make good decisions. Yet the ability to consciously find optimal decisions makes people happier in life. In the Standard, I explain how people can train themselves to make better decisions and, as a result, be more satisfied with their lives. Being self-determined means constantly making your own decisions. As we all know, these are not always the right ones. Afterwards, one is usually smarter, but then also often more frustrated, because what was actually planned did not occur. Johannes Siebert from the Management Center Innsbruck (MCI) and his team have proven this connection in several empirical studies: “We have shown in a structural equation model that those who have higher proactive cognitive abilities for decision-making are subsequently more satisfied with their lives,” Siebert reports. Such skills, which are necessary for making wise decisions in private life or at work, can be improved through…
How to make the better life decisions
Can we learn to make decisions in such a way that they positively influence developments in our private lives or in companies in the long term? Only if the character traits are right, says research. “A large proportion of companies make extremely poor decisions because they are unable to identify their objectives,” explains Johannes Siebert of Management Center Innsbruck (MCI). Only if the company’s objectives and values were defined could they be systematically pursued. If this does not happen, clinging to the status quo reigns instead of proactively initiating change. According to Siebert, making the right decisions is also the basis for entrepreneurial success. In Die Presse, I explain how people can make decisions and subsequently be more satisfied with their lives. Just follow this link. Sources Siebert, Johannes U.; Kunz, Reinhard, Rolf, Philipp. “Effects of decision training on individuals’ decision-making proactivity”, European Journal of Operational Research, 294 (1) 2021,…
Effects of Decision Training On Individuals’ Decision-Making Proactivity
Decision sciences are in general agreement on the theoretical relevance of decision training. From an empirical standpoint, however, only a few studies test its effectiveness or practical usefulness, and even less address the impact of decision training on the structuring of problems systematically. Yet that task is widely considered to be the most crucial in decision-making processes, and current research suggests that effectively structuring problems and generating alternatives—as epitomized by the concept of proactive decision making—increases satisfaction with the decision as well as life satisfaction more generally. This paper empirically tests the effect of decision training on two facets of proactive decision making—cognitive skills and personality traits—and on decision satisfaction. In quasi-experimental field studies based on three distinct decision-making courses and two control groups, we analyze longitudinal data on 1,013 decision makers/analysts with different levels of experience. The results reveal positive training effects on proactive cognitive skills and decision satisfaction,…
Developing and Validating the Multidimensional Proactive Decision-Making Scale
The crucial research questions are how their proactivity in decision situations can characterize individuals, the eventual consequences of proactivity in decision situations, and how the degree of proactivity affects satisfaction with one’s decisions. The scale on Proactive Decision Making (PDM) that has been theoretically developed from literature and empirically validated in cooperation with Prof. Reinhard Kunz (University of Cologne) allows for describing the degree of proactivity of individuals with six dimensions. Two dimensions cover proactive personality traits: ‘striving for improvement’ and ‘showing initiative’. The four dimensions ‘systematical identification of objectives’, ‘systematical identification of information’, ‘systematical identification of alternatives’, and “using a ‘decision radar’ concern proactive cognitive skills and integrate the ideas and concepts of value-focused thinking and decision quality into the PDM-scale. This scale provides the basis for analyzing many research questions. For instance, proactive individuals are significantly more satisfied with their decisions, and the scale can explain up to…
Learning to decide wisely and becoming happy: Studies show the effect of training on decision-making behaviour
People who make smart decisions in important private and professional matters increase their chances of greater life satisfaction. The cognitive skills required for this can be significantly honed through training. This is the conclusion reached by researchers at the University of Bayreuth in recent empirical studies published in the European Journal of Operational Research. Courses lasting several weeks with participants of different age and occupational groups demonstrably strengthened their ability to make well-considered choices in difficult decision-making situations.
Improving decision making competence of adolescents
The first decision many young people make is “what do I do after school?” For the most part, different options are presented at best. Often, young people then choose one of the obvious alternatives or alternatives suggested by others without thinking more deeply about what they personally actually want and what their objectives are. For example, you often hear young people say, “My mother is a doctor, so I’m studying medicine,” or “My father is an entrepreneur. I’m studying business,” or even “My parents didn’t study. I should definitely not make the same mistake.” In principle, these decisions may seem “reasonable” from an objective point of view; in individual cases, however, it is urgently necessary to consider each individual’s interests, wishes, and prerequisites. Before choosing a field of study, everyone should ask themselves the central question of whether training or studying is a better fit for a young person’s objectives…
Defining and Aligning Supply Chain Objectives Before, During, and After the COVID-19 Pandemic 3
In order to deal with the COVID-19 pandemic, many companies face numerous strategic decisions of utmost importance for their future. Being aware of one‘s objectives is a prerequisite for sound decision making. However, decision and policymakers are often not aware of their objectives when facing important decisions in “normal” times. In addition, specific objectives have to be identified in times of crisis such as theCOVID-19 pandemic. In this article, we provide guidelines for managers that illustrate the following. (i) How to identify company objectives? (ii) How to align them within their supply chains and with governmental objectives of policy makers? (iii) How to adjust objectives during and after theCOVID-19 pandemic? Furthermore, we suggest comprehensive sets of relevant objectives and propose an iterative process to define, align, and adjust objectives. The study may help practitioners from business and public administration when making decisions and policies. Researchers may be inspired by the…
Prioritization model for the early-stage development pipeline to enable holistic portfolio management for a pharma company
The client was seeking a way to evaluate early development projects that would take an integrated view of the portfolio and enable consistent trade-offs. The solution was a multi-attribute prioritization methodology to enable holistic portfolio management and value-based decision making. The innovative methodology uses multi-attribute utility theory and value-focused thinking within the framework of decision quality, providing a consistent evaluation of various early-stage projects within a heterogeneous set of disease areas, thereby enabling trade-offs based on agreed-to decision criteria.
Give yourself a nudge: How to ‘nudge’ yourself to systematically make better decisions professionally and personally
Decisions are the only way we can actively influence what is important to us or our organization. Everything else ‘happens’. It is therefore surprising that decision-makers leave much potential for improvement untapped. In the September City Talk, numerous tips will be given on how we can systematically make better decisions and thus achieve what is important to us. About it speaks Prof. (FH) PD Dr. habil. Johannes Siebert from the Management Center Innsbruck.
Minimizing the impact of fake news on the real world by debiasing the belief perseverance bias
Fake news is false news stories packaged and published as if they were genuine with the intention to mislead the reader to damage an agency, an entity, or a person or to increase an internet click revenue. During the 2016 US presidential election campaign, fake news became a global phenomenon, in particular, due to the growing use of social media as a source for news. The proliferation of fake news online has been of increased concern to the European Parliament since. However, no agreement on how to tackle this issue has been reached. Debiasing refers to attempts to eliminate or at least reduce biases. Only a few debiasing methods have been introduced for the belief-perseverance and confirmation biases so far. Although it was suggested already in early publications that effective debiasing methods should include a combination of various debiasing techniques, scholars have instead focused on isolated debiasing techniques. Moreover, the…