Daily Archives: November 5th, 2018

Nobel prize technic on how make a decision about your management system

November 5th, 2018 Posted by Presentation, Tip Of The Week 0 thoughts on “Nobel prize technic on how make a decision about your management system”

Today I want to talk about the way we are making decisions. One way is to listen to your inside mystic voice telling you all kinds of fairy tells about do/don’t decision criteria, by the way, this can take you back to your mother voice in your head. Another way is to look at your decision in more statistical manner telling you what are the chances of making a GOOD decision and the 3rd technic is about our passive and active decisions that balance between the logical and emotional thinking.

On the most popular economical article of all times from 1979 by Prof. Daniel Kahneman who was our Nobel prize winner for economy describes a research indicating that we as humans feel that the bitterness of failure is 2 times larger than the sweetness of the success if we will take a decision. That means people are not taking actively decision, it is called “The Status Quo Effect”.

We meet everyday people that are in a situation where the emotional drive and the logical drive are in an equilibrium state. Yes, the forces of the day to day tasks do not let you stay there and you need to take a decision. Even if it is a decision to equip your organization with a software that can create for you controlled framework that you need in order to keep functioning under the daily tasks stress. The decision to stay passive and not do any change is much more attractive than the active decision to make a change.

How to take a decision in such matter, the way to do it is to separate from the active decision to positive decision. So in order to take a decision about system selection should start from the passive decision. Ask yourself what will happen if you do not take any decision, in that case, you will find the cost and pain that comes with not taking any decision, try to put numbers next to that cost. The default behavior of our decision process is not making a decision.

But if you want to make a change you need to do a bit more than do nothing. So now ask how you can take an active decision? Put yourself in the position of your next audit event. Now you do not know what will be the outcome of that audit, you do know what happened the year before and that you will be exposed to some faults. That though will drive you to take an active decision to make a change and have a system to reduce the chance for nonconformity. In other case imagine the time you spend every day on seeking and updating documents and the overhead activities you do to maintain the integrity of such documents. The idea is to change the passive decision to active by finding events close to your world and put yourself that point and evaluating your status quo of your organization.

 
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