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JIMINY SELF-HELP HANDBOOK 8

a problem or some discrepancy that exist between the desired and current state. The difference
between these two is the “gap” or problem that must be solved through the decision-making process.

Step 2: Gathering relevant information. The second step is about collecting some pertinent
information before making the decision: what information is needed, the best sources of information,
and how to get it. This step involves both internal and external “work.” Some information is internal:
can be found through a process of self-assessment. Other information is external: can be found it
online, in books, from other people, and from other sources.

Step 3: Identifying the alternatives. As we collect information, we will probably identify several
possible paths of action, or alternatives. A good entrepreneur can also use his/her imagination and
additional information, think “out of the box” and create new alternatives. In this step, listing all
possible and desirable alternatives can be very useful.

Step 4: Weighing the evidence. This means drawing on our information and emotions to imagine what
it would be like if we carried out each of the alternatives to the end. It is important to evaluate whether
the need identified in Step 1 would be met or resolved through the use of each alternative. As we go
through this difficult internal process, usually we begin to favor certain alternatives: those that seem
to have a higher potential for reaching our goal. Finally, we can place the alternatives in a priority
order, based upon our own value system.

Step 5: Choosing among alternatives. Once we have weighed all the evidence, we are ready to select
the alternative that seems to be best one for our business. We may even choose a combination of
alternatives. Our choice in Step 5 may very likely be the same or similar to the alternative we placed
at the top of our list at the end of Step 4.

Step 6: Taking action. In this step we are ready to take some positive action by beginning to implement
the alternative we chose in Step 5.

Step 7: Reviewing our decision and its consequences. In this final step, we should consider the results
of our decision and evaluate whether or not it has resolved the need identified in Step 1. If the decision
has not met the identified need, we may want to repeat certain steps of the process to make a new
decision. For example, we might want to gather more detailed or somewhat different information or
explore additional alternatives.

At this point, it is crucial to understand that not all decisions are equal and that we can differentiate
them along two dimensions: importance and urgency. An important decision is one that has the
potential to have a significant impact on our business or on a person’s life. An urgent decision is one
that we must make immediately and there is no time for further consideration.

Going back to step 1, we have to consider these two dimensions together and act accordingly. Based
10
on the advices given by two entrepreneurs and small business consultants , here are the four types
of decisions (depending on their importance and urgency) and how to approach them:

a) Neither urgent, nor important: If a decision is neither urgent nor important, we may not need to
make it at all or another option is to delegate to others (such decisions provide an opportunity for a
manager to coach subordinates on how to think about decision-making). We should resist the
temptation to focus on items that we can check off our “to-do” list quickly when there are other more

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10 White, Doug and Polly (2015, Aug. 11 ), “The 4 Types of Decisions, and How to Approach Each One”,
Entrepreneur, available online https://www.entrepreneur.com/article/248988