How do I change my brain to make better decisions?

A decision is a prioritization choice of how I will use limited resources (time, attention, actions, money, etc.). When I compare options to make a choice, the physical action happening in my brain is the equivalent of plugging and unplugging different strings of Christmas lights. My brain stores strings of associations and when I compare different options I’m working to identify a string of events which will narrow the gap between the indicators I’m paying attention to and the result I am trying to achieve.

Improve the quality of my memories. My memories are stored as physical links between information. The quality of my memories is measured by the accuracy of the associations I make and the accuracy of my context based value assessments.

Improve access to my memories. Everything I have memorized is stored in a network of associations. The human brain has an amazing capability to bundle a group of associations together and represent a vast amount of information with a simple concept or even a symbol ($ is a good example). Grouping information together and giving it a category or label provides an easy handle to grab for accessing strings of associated information. My goal is to reduce any complex issue to no more than three concepts. I then only have to remember three words linked to an issue to access underlying concepts. Limiting myself to three concepts forces me to work through associations and context based value to find the three concepts with the most leverage (i.e. highest likelihood of success and most byproducts).

Good decisions require a solid knowledge base and the ability to pull from both the knowledge base and available indicators to make priority choices for attention, effort and resources. Decision skill can be classified into three levels:

Understanding. With understanding I can follow a conversation. I can follow what you are saying and possibly link it to other information. Understanding is the start of a solid knowledge base, it sets the stage for more learning.

Application. There is a jump I have to make to move from understanding a subject to applying what I’ve learned. Understanding provides enough information for me to visualize what the result or goal should look like. I won’t really see the holes in my understanding until I start to apply the knowledge by making choices of what to pay attention to and where to apply effort based on available information. With successful application it feels like I have a solid grasp of a subject, but I still have growing to do.

Wisdom. Wisdom is defined as the combination of experience, knowledge and good judgement. My goal for decision making is to develop wisdom in the environment I’m studying. With wisdom comes the ability to understand the implications of the available information and quickly and accurately identify what information is important and what actions are a priority. Whenever I find someone who can apply a concept, they can provide a list of 10 or 12 things to do to be successful. Whenever I find someone who is truly wise in a subject area, they can provide a single focus point to move me from where I am to where I am trying to go.

Prep Work. If I’m going to make good decisions, I need to do as much work as possible ahead of time. My goal for prep work is not to get bogged down in analysis or trying to predict the future. My goal for prep work is to be conscious of the information I am using to prioritize allocation of scarce resources – it’s a iterative process of starting with what’s on the top of my head and continuously improving a list, rather than banging my head against a wall and coming up with a perfect list in one sitting. Preparation for decisions involves consciously identifying:
* The result I’m trying to achieve.
* Factors and driving forces that will lead to success or failure.
* Probability, uncertainty and impact of variations in the driving forces.
* Indicators of change in the driving forces.
* Available actions I can use to influence the driving forces.
* Risk, downside, downside indicators and protection from the downside if I’m wrong.

Focus. When I choose a goal, I significantly influence all of my future decisions (my priority choices for attention, effort and resources). I can only have one goal, one priority. My goal will produce byproducts. If I choose the right goal, the byproducts are a bonus (shareholder value is a byproduct of effective business decisions, focusing on shareholder value (a short term goal) leads to poor business decisions).

Filters. Filters develop automatically. My location is a filter, my position is a filter, my culture, by experiences, the news I watch, the books I read, the people I spend time with are all filters. Filters limit the information available to make decisions. I have a finite capacity for processing information so filters are essential. Consciously identifying and frequently reviewing my filters can significantly increase the effectiveness of my decisions.

Pre-Mortems. I’m going to be wrong. “Pre-mortems” (role playing a wrong decision) help illuminate pitfalls and sensitize my brain to signs my plan is going South. Going through a pre-mortem is also a useful way to pre-identify exit points before getting caught up in the emotions involved with execution.

Please visit the People page to see the people who have increased my understanding of what’s going on in my head.