How to make both better and faster decisions
The decisions we make are important. Because there is nothing else that has such a strong impact on how our lives and our organisation evolves than the decisions we make.
However, we often find ourselves in a challenge:
- The world today demands of us to make both better and faster decisions.
- At the same time we are more uncertain about the future than ever.
Here you find insights and tools that can help us handle this challenge by using our guts, heads and hearts, together.
Get to know your gut, head and heart
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The world we live in
Today we need to meet the acceleration of changes with even better and faster decisions. At the same time we are more uncertain about the future than ever. How can we handle and overcome this challenge?How we make decisions as humans
Daniel Kanehman is a professor in psychology and has spent decades of research on decision making. He was awarded the Nobel Prize in Economy, and has written the book “Thinking Fast and Slow”. He describes two systems for decision making:- The gut: It’s our emotional system providing us with an intuition, a gut-feeling
- The head: It’s our rational and reasoning system that turns on our logical thinking
Involve the heart to avoid shortcomings
However, both the gut and the head have some shortcomings that dilute the quality and speed of our decisions. For example, our head and gut make decisions based on past information or experiences, which can be outdated in a world that constantly changes.
The solution is to also involve the heart in decision-making. When we involve the heart, decisions are anchored in our values – a forward-looking compass that help us stand up for who we are and want to be.Better and faster decisions by using the IKEA key values
When we base our decisions also in our IKEA key values, we can make decisions that are:- Better: We are equipped with a forward-looking compass that help us make decisions in the unknown. It gives us a moral direction that helps us prioritise what matters for IKEA. It helps us to align our efforts, be consistent and stay rooted in who we want to be.
- Faster: The IKEA key values are accessible to everyone in IKEA and empower each of us to make decisions and to act fast. Living the IKEA key values also breeds trust. And when trust goes up, speed goes up and costs goes down.
Head, heart and gut together
We avoid making decisions that are only based on one of our decision-making sources as that might fool us. Instead, we need and use all three - the head, heart and gut together - to balance out the shortcomings and help us make both better and faster decisions in total.Values-based decisions strengthens the IKEA culture and business
Values-based decisions nurture a stronger IKEA culture. A stronger IKEA culture inspires, challenges and empowers us to work together, lead by example, find better ways forward and get things done. This helps us make a better IKEA, for and with the many people.Copy link Copied Link Successfully copied link
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Old and fast
Gut decisions are taken in our “lizard brain”, in the limbic system. It helps us detect fear and prepare us for emergency, just like it did when we needed to stay safe in the wild in pre-historic times. That’s why it’s super-fast – 80,000 times faster than our rational thinking.
Automatic and uses little energy
It’s automatic and is constantly scanning the environment for friend or foe, risks and threats. For example, it helps us react automatically by the sound of a snake in nature or the sign of a foe in our social environment. It’s preferred by the brain as it uses little energy, and therefore steers most of our many day-to-day decisions.
Intuitive
The gut communicates through emotions, giving us an intuitive feeling that something is right or wrong. We just sense that we know. It’s “knowing without knowing.” It’s closely linked to entrepreneurship - of being attentive and able to see what is not seen, to have a gut-feeling that something more can be done with what we have in front of us.
Developed through mistakes
The competence needed for gut decisions is developed through learning from mistakes. Take a pilot for example. He or she would have to experience all kinds of challenges and mistakes before being able to trust his or her intuition to make the right split-second decision in an emergency.
Shortcomings
Decisions made by the gut are often correct. But they’re not perfect. The gut tends to take short-cuts that can fool us:- Too hasty conclusions: The gut goes for speed before accuracy, whereby we could make too hasty conclusions.
- Based on outdated experiences: It’s built on our experiences from the past, whereby our intuition is limited in an unknown future.
- A victim for biases: To save energy we fall short for biases. They dilute our perception and the quality of our decisions. For example, our gut tends to focus on information that confirms our previous experiences and knowledge, which can make us blind to important changes.
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New and slow
What we call “head” decisions are made in the newest part of our brain, in our frontal lobe, which is not fully developed until we become adults. Compared to the gut, it is very slow.
Rational functions
This part of the brain hosts rationality, language, and consciousness. We use it when we deliberately reflect, focus, interpret concepts, and make rational decisions. It helps us plan, set goals and control our behaviour. It helps us filter among the masses of information that reach us every second. This filter differs from person to person, whereby we can make different interpretations of the world we live in.
Energy consuming
These rational activities consume a lot of energy. This is why we can feel exhausted after listening to a lengthy speech, after studying or making long-term action plans. We only have the energy for head decisions about 3 hours per day. Every time we are distracted, the neuro pathways are forced to shift lanes. This consumes energy, and we need to fill up with sugar or move around to increase blood-flow. As a consequence, the brain prefers gut decisions, and only makes head decisions when really needed. This is why many of us are reluctant to plan and make conscious prioritisations.
Regulates emotions and behaviours
The head evaluates signals from our gut, which it most often approves, and help us regulate our emotions and impulses. But if our rational energy reserve is consumed, we lose our ability to fully regulate our emotions and behaviours. So, for example, after a long meeting or a long day at work, we might find ourselves in situations where we lose control of our behaviours and on how we live our values.
Shortcomings
Decisions made by the “head” generally make sense. But not all the time. The head has some shortcomings that can fool us:- Indecisive and slow: We live in a world of increased volatility, complexity and ambiguousness. This tend to make us feel uncertain about the future. To reduce this uncertainty we consume more and more information, e.g. KPIs. But, our heads have difficulties to handle too much information, speed and complexity. They are not made for the overflow of information we experience today and will check-out. This makes us indecisive and slow. And the more complicated a decision, the longer applying a rational approach takes. This makes the head return to the less energy consuming source – our gut - and we ask ourselves: “How do I feel about all of this”? But if the gut doesn’t have any relevant experience of this type of situation, it can fool us.
- Based on outdated information: Our heads use information from the past to make decisions about the future. But as the world we live in is in constant change, we need to be aware of that our facts might be outdated already tomorrow.
- Lose sight on priorities: The more we apply rational analysis on things, the more likely it is that we start considering irrelevant factors. We then lose sight of what really matters, e.g. the IKEA key values.
- A victim of biases: Ingrained and hidden biases override rational thinking, making us blind to, for example important changes.
- Lack of moral compass: Even if we use all our rational as well as intuitive capabilities, we can still end up making decisions that lack moral and ethics, which can be fatal for ourselves and our organisation.
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Download ImageThe solution is to also involve the heart in decision-making! When we involve the heart, decisions are anchored in our values. Values are what we consider to be important. They guide us in how we do things and set a vision for who we want to be.
By using our IKEA key values together with our gut and head we’ll make both better and faster decisions.
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Our choices aren’t just about what we do, they are about who we want to be. The IKEA key values help us be authentic and stand up for who we are and want to be, both internally and externally. Our values give us a moral direction to help us see what’s right and wrong in a given situation.
A built-in compass
The IKEA key values help us navigate in a complex and unknown environment. They guide us like a built-in compass, helping us to simplify and prioritise what matters for IKEA and for the many people.
Forward-looking
Our head and gut make decisions based on past information or experiences. But values are what we are striving towards, who we want to become. They are forward-looking in a complex and constantly changing world, helping us cope with challenges and down-turns and move in the right direction.
Accessible to all, aligning our efforts
Head information or gut experiences belong to a limited number of people with access to complex facts or insights. But the IKEA key values are accessible to all of us all the time and help us align our efforts, work together and stay consistent. And the stronger they’re anchored, the less rules, policies and control systems we need. This gives us more freedom.
Trust and speed
When decisions are made with the help of our IKEA key values, we lead by example. That builds trust in you as a person as well as in IKEA. When trust goes up, speed goes up and costs goes down.Copy link Copied Link Successfully copied link
How to do it
By using a process we secure to activate and use the head, heart and gut together. The more times we practice the process, the more natural it will feel and the faster it will go. In the end, we could run through the process during the few minutes we stop and reflect when solving day-to-day problems.
In short, we just ask ourselves:
- What does my head tell me?
- What does my heart tell me?
- What does my gut tell me?
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Step 1: Define a problem
We define a problem, a challenge, or a dilemma where decisions need to be made. It can be private or professional. To get a hang of the process, we start simple by dealing with hands-on and not too abstract problems.
Step 2: Define a wished outcome
What is the wished outcome we want? What do we want to achieve? To help us, we can ask ourselves:
- What are the business aspects we want to achieve?
- What do we want people to feel, know and do?
- What IKEA key value(s) do we want to strengthen?
- What is the one thing the decision must achieve?
Step 3: Use our heads and define two alternative decisions
We activate our rational frontal lobes, quickly scan through the most essential facts at hand, and define two alternative options/decisions.
Step 4: Use our hearts and the IKEA key values to examine the two alternative decisions
We activate our hearts and examine the two alternative decisions by physically standing in each IKEA key value.
You can use following method and exercise.Download ImageTime: 5-10 min
Material: Make an IKEA key values wheel on the floor using tape and printouts of each value.
Instruction:- Tell the group to imagine their wished outcome (or their challenge at hand) being in the middle of the circle.
- Invite the group to walk around in the circle, having the alternative decisions in mind, and look at the wished outcome from these eight perspectives.
- Stop by a value when you feel you have an insight. Ask yourself: Are there aspects I have not thought of? Are there aspects I want to see more or less of
- Fine-tune your alternative decisions using your heart.
Debrief: Share your experiences in the group.
Step 5: Use our guts and intuitions
To activate our guts/intuition we conduct a visualization exercise. The purpose is to still our minds, activate our senses and let our intuition emerge from within.
Time: 5 min
Material: Chairs or comfortable floor, preferably sitting in a circle.
Instruction:
Tell the group to make themselves comfortable, to close their eyes, breathe and relax and let go of the distractions of the day. Then lead the group through following visualization:- Imagine yourself walking down a path.
- Take a few moments to notice what you see, smell and feel.
- While you are walking, go over the alternative decisions you have in mind.
- A little way ahead you see a cross road.
- As you come to the cross road you realise that the path divides into the same amount of smaller paths as you have alternative decisions.
- Take a medium breath in and out, and then slowly travel down one of the paths (alternative decision). Notice what you see. Notice how you feel. Take the time you need.
- When you have finished exploring one of the paths, go back to the crossroad and take one of the other paths.
- Repeat the exploration till you’ve explored all alternative decisions. Notice what you see. Notice how you feel.
- When you have finished, take another medium breath in and out, slowly open your eyes and come back into the room.
- Take a few moments to reflect on your experience - which path felt most intuitively ‘right’ to you?
Debrief: Let the group share their experience - how it felt, what the effect was and also if/how they see that this method can be used in day-to-day work.
Step 6: Make a decision!
Now we have reached our final destination and it’s time to make a decision. Summon up your total experience and make a decision!
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You find below exercises as a PPT in the supporting materials.
Exercise 1 - (30 minutes version for individual decisions)
Prior to workshop, reflect upon an individual problem where a decision needs to be made. Can be private or professional. For this problem, also reflect upon your wished outcome.
- Introduction: Present topic and watch Values-based decision making introduction film (20 minutes)
- Step 1: Define a problem. (1 min)
- Step 2: Define a wished outcome. (1 min)
- Step 3: Use your head and define two alternative decisions. (3 min)
- Step 4: Use your heart and the IKEA key values to examine the two alternative decisions. (4 min)
- Step 5: Use your gut and intuition by following the given instructions. (4 min)
- Step 6: Make a decision!
Debrief: Why is this important? What’s the one thing I will use or be aware of from today?
Exercise 2 - (3 hours version for team decisions)
Prior to workshop, reflect upon both an individual and team challenge where a decision needs to be made.
Introduction (20 min): Watch Values-based decision making introduction film
What’s the biggest decision I’ve ever taken? How did I think (head)? What did I feel (gut)? What did I value (heart)? Share in pairs.
Intake (60 min): Present the Values-based decision making PPT or watch the 45 min Values-based decision making lecture film.Apply theory on an individual problem and follow the process (20 min):
- Step 1: Define a problem. (1 min)
- Step 2: Define a wished outcome. (1 min)
- Step 3: Use your head and define two alternative decisions. (3 min)
- Step 4: Use your heart and the IKEA key values to examine the two alternative decisions. (4 min)
- Step 5: Use your gut and intuition by following the given instructions. (4 min)
- Step 6: Make a decision!
- Short debrief: What did you learn?
Apply theory on a team problem and follow the process (60 min):
- Step 1: Define a problem. (5 min)
- Step 2: Define a wished outcome. (5 min)
- Step 3: Use your head and define two alternative decisions. (10 min)
- Step 4: Use your heart and the IKEA key values to examine the two alternative decisions. (15 min)
- Step 5: Use your gut and intuition by following the given instructions. (15 min)
- Step 6: Make a decision! (10 min)
- Short debrief: What did you learn?
Debrief (20 min): Why is this important? What’s the one thing I will use or be aware of from today?
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