Decision Analysis

Why Don't We Naturally Make Good Decisions? By Ron Howard

Part of the Series: Stanford Executive Briefings

Decision making cuts across all human activities. Yet we rarely study--much less apply--the fundamental thinking processes that should be undertaken before we make important decisions. Most of us can't stop our emotions from having more sway than rational deliberation.

Dr. Howard, who has spent much of his career studying this struggle between instinct and logic, describes the elements of high-quality decisions: proper framing, clear alternatives, appropriate information, considered preferences, and the logic necessary for an uncertain world. By understanding the distinction between decisions and outcomes, and using effective decision analysis tools, we can increase our clarity of action in the decisions that shape our lives and organizations.