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10 Things You Didn’t Know About Decision Making

10 Things You Didn’t Know About Decision Making

We make hundreds, maybe thousands, of decisions everyday. From the minuscule to the huge. From “Do I wear green socks or blue?” to “Do I really need to buy that car?” Every time we have to choose, no matter how small the choice may seem, we are depleting our energy and creating stress.

Making decisions is hard work. The key is to make fewer decisions and reserve your energy for the big ones. President Obama, in a Vanity Fair article, said, “You need to remove from your life the day-to-day problems that absorb most people for meaningful parts of their day… You’ll see I wear only gray or blue suits. I’m trying to pare down decisions. I don’t want to make decisions about what I’m eating or wearing. Because I have too many other decisions to make. You need to focus your decision-making energy. You need to routinize yourself. You can’t be going through the day distracted by trivia.”

1. Your brain requires glucose to make good decisions.

Psychological scientists X.T. Wang and Robert D. Dvorak from the University of South Dakota studied how blood sugar levels affect the way we think. “Volunteers answered a series of questions asking if they would prefer to receive a certain amount of money tomorrow or a larger amount of money at a later date. They responded to seven of these questions before and after drinking either a regular soda (containing sugar) or a diet soda (containing the artificial sweetener aspartame). Blood glucose levels were measured at the start of the experiment and after the volunteers drank the soda.

“The results, reported in Psychological Science, a journal of the Association for Psychological Science, reveal that people’s preferences for current versus later rewards may be influenced by blood glucose levels. The volunteers who drank the regular sodas (and therefore had higher blood glucose levels) were more likely to select receiving more money at a later date while the volunteers who drank the diet sodas (and who had lower blood glucose levels) were likelier to opt for receiving smaller sums of money immediately. These findings are suggestive of an adaptive mechanism linking decision making to metabolic cues, such as blood sugar levels.”

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While drinking a soda before you make a choice is not the answer, keeping your blood sugar levels up by eating small amounts of healthy food throughout the day will likely improve your decision-making abilities.

2. Bad decisions come from mental fatigue.

Once you start getting tired, you start making bad decisions. Whether you’re not eating well, have had a long day or are simply tired, bad decisions will start to happen. If you’re “too tired to care,” then Oreos for dinner might sound like a great idea. Or instead of going to the gym or for a walk, sitting on the couch and watching TV becomes very enticing.

According to a research study published by the National Academy of Sciences, psychologists examined the factors that impact whether or not a judge approves a criminal for parole.

“The researchers examined 1,112 judicial rulings over a 10-month period. All of the rulings were made by a parole board judge, who was determining whether or not to allow the criminal to be released from prison on parole. (In some cases, the criminal was asking not for a release, but rather for a change in parole terms.)” While you might think the judges were affected by the type of crime committed, you’d be wrong. Instead, the judges choices were more influenced by whether or not they had just had a food break. Most — about 65 percent — of the potential parolees, received parole early in the morning or after a break, regardless of the crime.

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Those who had their hearings early in the morning or after lunch were much more likely to get parole than those who sat before the judge at the end of the morning or the end of the day, when the judges were likely, let’s face it, crankier.

3. Develop routines to overcome decision fatigue.

I have a pretty solid morning routine, no matter what my day is like. I wake up, make coffee, check email and social media – just to “wake up.” Then I get right into writing my first couple of articles. Then I eat breakfast. I do this every single morning. I get a lot done this way too. I also have routines for when I feed my dogs (I have 23) and different but similar routines for my workouts and different days when I have to be in different places. Routines are essential to good decision making because they eliminate the minor decisions that often take up the day.

4. Eliminate decisions.

Plan out your decision making before you have to make it. Put out what you’re going to wear in the morning. Decide what or where you will eat. Deciding these beforehand, eliminates the need to spend time on the decisions the next day — and potentially fighting your willpower. Be resolved to wake up and work out and you will.

5. Sleep well.

Sleeping better helps you make better decisions. If you are feeling rested, you won’t be tempted by that mid-morning doughnut or the temptation to not go for a run. Try and get to sleep about the same time every night. Make it a routine. If there is a day every week that plays a show you like on TV, incorporate that into your routine or record it for viewing at an earlier hour. It’s important to get the right amount of sleep for you. If you can, incorporate a nap into your schedule. Even 20 minutes can give you a boost and help you conquer your decisions.

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6. Make commitments, not decisions.

Don’t stand at the door trying to decide if you should go for a walk. Instead, plan it into your day. Think about the things that you want to do — I mean the things you really want to do and plan for them. If you want to lose 40 pounds, figure out the steps necessary to make that happen. Plan out your meals and schedule workout time. Making this a part of your daily routine means that you don’t have to decide anymore. You just have to follow your schedule.

I used to hate going for a walk or a run. I thought it was boring. But I knew I had to do it in order to lose the weight I had to lose and get back into shape. So I scheduled time in my afternoon. Coincidentally, this time (about 3pm) is about the time everyday when I used to want to lay on the couch, watch TV and take a nap. Now, even if I feel like laying down, I lace up my sneakers and start walking. Usually kind of slowly at first, until I get into the groove and start running or do some sprints. All of a sudden, I’m having a great workout. But I wouldn’t if left to my own devices. Plan. It helps.

7. Prepare for moments of weakness.

I know that everyday around 3 pm, I’m not going to feel like walking or running. I have to mentally prepare myself for this little argument I have with myself. Sometimes, it’s just about changing motions. I have to go and get a fresh pair of socks, put on my shoes. And then, well, I have my shoes on, I might as well just walk a little. I don’t have to go really far, I telly myself. Just get out the door and get some air. Then I grab one of my dogs and we walk along and pretty soon I’m running or jogging or climbing hills with them, having a good time. Now that I’ve done this routine everyday for about four years, I know I’ll feel better once I get going. But it wasn’t always like that. I had to prepare for that weak moment.

This is also true with food. I love carbs and sweets. Really. I would eat them all the time. Bread, cookies, you name it. I had to stop. I also had to learn to walk away when my cravings got bad. I learned that I would eat a treat around 9:30 or 10 pm in front of the TV. For a long time, I started going to bed at 9 pm with a book. I would read and then fall asleep, never getting the treat because it was down in the kitchen instead of staring me in the face. Learning to prepare and act before the weak moment comes is key to good decision making.

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8. Take time for yourself.

If you are at work and you are constantly confronted with decisions, you might, just like the judges mentioned above, start to get a little cranky. Take a break when this starts to happen. Go outside and walk or sit under a tree and read a book you like. Getting a mental break from issues that aren’t your own is essential to your own mental clarity and will help you make better decisions later on in the day.

9. Shopping is exhausting. Avoid it if you can.

Why is online shopping so much easier than shopping in person? You are making fewer decisions. If you know you want a certain pair of sneakers, online, you can just go get those sneakers and buy them. At the store, though, you have a multitude of options and then, decisions to make. Researchers found that those making shopping decisions gave up more quickly on a math test.

10. Let your unconscious mind work for you.

Have you ever felt confounded by a problem? Have you ever gone to “sleep on it,” and awoken understanding the problem better? Sure, we all have. Sometimes, relaxing, focusing on something else or getting some sleep, can help you clear away the detritus around the problem and let your mind do the work. Believe it or not, your brain is still working whether you are thinking about something or not. Relax. Go play volleyball and let your brain do the heavy-lifting for a while.

Featured photo credit: REUTERS/Jumana El Heloueh via static6.businessinsider.com

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Michelle Kennedy Hogan

Michelle is an explorer, editor, author of 15 books, and mom of eight.

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Last Updated on January 6, 2021

14 Ideas on How to Measure Productivity to Make Progress

14 Ideas on How to Measure Productivity to Make Progress

Everyone has heard the term productivity, and people talk about it in terms of how high it is and how to improve it. But fewer know how to measure productivity, or even what exactly we are talking about when using the term “productivity.”

In its simplest form, the productivity formula looks like this: Output ÷ Input = Productivity.

For example, you have two salespeople each making 10 calls to customers per week. The first one averages 2 sales per week and the second one averages 3 sales per week. By plugging in the numbers we get the following productivity levels for each sales person.

For salesperson one, the output is 2 sales and the input is 10 sales: 2 ÷ 10 = .2 or 20% productivity. For salesperson two, the output is 3 sales and the input is 10 sales: 3 ÷ 10 = .3 or 30% productivity.

Knowing how to measure and interpret productivity is an invaluable asset for any manager or business owner in today’s world. As an example, in the above scenario, salesperson #1 is clearly not doing as well as salesperson #2.

Knowing this information we can now better determine what course of action to take with salesperson #1.

Some possible outcomes might be to require more in-house training for that salesperson, or to have them accompany the more productive salesperson to learn a better technique. It might be that salesperson #1 just isn’t suited for sales and would do a better job in a different position.

How to Measure Productivity With Management Techniques

Knowing how to measure productivity allows you to fine tune your business by minimizing costs and maximizing profits:

1. Identify Long and Short-Term Goals

Having a good understanding of what you (or your company’s) goals are is key to measuring productivity.

For example, if your company’s goal is to maximize market share, you’ll want to measure your team’s productivity by their ability to acquire new customers, not necessarily on actual sales made.

2. Break Down Goals Into Smaller Weekly Objectives

Your long-term goal might be to get 1,000 new customers in a year. That’s going to be 20 new customers per week. If you have 5 people on your team, then each one needs to bring in 4 new customers per week.

Now that you’ve broken it down, you can track each person’s productivity week-by-week just by plugging in the numbers:

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Productivity = number of new customers ÷ number of sales calls made

3. Create a System

Have you ever noticed that whenever you walk into a McDonald’s, the French fry machine is always to your left? 

This is because McDonald’s created a system. They have determined that the most efficient way to set up a kitchen is to always have the French fry machine on the left when you walk in.

You can do the same thing and just adapt it to your business.

Let’s say that you know that your most productive salespeople are making the most sales between the hours of 3 and 7 pm. If the other salespeople are working from 9 am to 4 pm, you can potentially increase productivity through something as simple as adjusting the workday.

Knowing how to measure productivity allows you to set up, monitor, and fine tune systems to maximize output.

4. Evaluate, Evaluate, Evaluate!

We’ve already touched on using these productivity numbers to evaluate and monitor your employees, but don’t forget to evaluate yourself using these same measurements.

If you have set up a system to track and measure employees’ performance, but you’re still not meeting goals, it may be time to look at your management style. After all, your management is a big part of the input side of our equation.

Are you more of a carrot or a stick type of manager? Maybe you can try being more of the opposite type to see if that changes productivity. Are you managing your employees as a group? Perhaps taking a more one-on-one approach would be a better way to utilize each individual’s strengths and weaknesses.

Just remember that you and your management style contribute directly to your employees’ productivity.

5. Use a Ratings Scale

Having clear and concise objectives for individual employees is a crucial part of any attempt to increase workplace productivity. Once you have set the goals or objectives, it’s important that your employees are given regular feedback regarding their progress.

Using a ratings scale is a good way to provide a standardized visual representation of progress. Using a scale of 1-5 or 1-10 is a good way to give clear and concise feedback on an individual basis.

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It’s also a good way to track long-term progress and growth in areas that need improvement.

6. Hire “Mystery Shoppers”

This is especially helpful in retail operations where customer service is critical. A mystery shopper can give feedback based on what a typical customer is likely to experience.

You can hire your own shopper, or there are firms that will provide them for you. No matter which route you choose, it’s important that the mystery shoppers have a standardized checklist for their evaluation.

You can request evaluations for your employees friendliness, how long it took to greet the shopper, employees’ knowledge of the products or services, and just about anything else that’s important to a retail operation.

7. Offer Feedback Forms

Using a feedback form is a great way to get direct input from existing customers. There are just a couple of things to keep in mind when using feedback forms.

First, keep the form short, 2-3 questions max with a space for any additional comments. Asking people to fill out a long form with lots of questions will significantly reduce the amount of information you receive.

Secondly, be aware that customers are much more likely to submit feedback forms when they are unhappy or have a complaint than when they are satisfied.

You can offset this tendency by asking everyone to take the survey at the end of their interaction. This will increase compliance and give you a broader range of customer experiences, which will help as you’re learning how to measure productivity.

8. Track Cost Effectiveness

This is a great metric to have, especially if your employees have some discretion over their budgets. You can track how much each person spends and how they spend it against their productivity.

Again, this one is easy to plug into the equation: Productivity = amount of money brought in ÷ amount of money spent.

Having this information is very useful in forecasting expenses and estimating budgets.

9. Use Self-Evaluations

Asking your staff to do self evaluations can be a win-win for everyone. Studies have shown that when employees feel that they are involved and their input is taken seriously, morale improves. And as we all know, high employee morale translates into higher productivity.

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Using self-evaluations is also a good way to make sure that the employees and employers goals are in alignment.

10. Monitor Time Management

This is the number one killer of productivity in the workplace. Time spent browsing the internet, playing games, checking email, and making personal calls all contribute to lower productivity[1].

Time Management Tips to Improve Productivity

    The trick is to limit these activities without becoming overbearing and affecting morale. Studies have shown that most people will adhere to rules that they feel are fair and applied to everyone equally.

    While ideally, we may think that none of these activities should be done on company time, employees will almost certainly have a different opinion. From a productivity standpoint, it is best to have policies and rules that are seen as fair to both sides as you’re learning how to measure productivity.

    11. Analyze New Customer Acquisition

    We’ve all heard the phrase that “It’s more expensive to get a new customer than it is to keep an existing one.” And while that is very true, in order for your business to keep growing, you will need to continually add new customers.

    Knowing how to measure productivity via new customer acquisition will make sure that your marketing dollars are being spent in the most efficient way possible. This is another metric that’s easy to plug into the formula: Productivity = number of new customers ÷ amount of money spent to acquire those customers.

    For example, if you run any kind of advertising campaign, you can compare results and base your future spending accordingly.

    Let’s say that your total advertising budget is $3,000. You put $2,000 into television ads, $700 into radio ads, and $300 into print ads. When you track the results, you find that your television ad produced 50 new customers, your radio ad produced 15 new customers, and your print ad produced 9 new customers.

    Let’s plug those numbers into our equation. Television produced 50 new customers at a cost of $2,000 (50 ÷ 2000 = .025, or a productivity rate of 2.5%). The radio ads produced 15 new customers and cost $700 (15 ÷ 700 = .022, or a 2.2% productivity rate). Print ads brought in 9 new customers and cost $300 (9 ÷ 300 = .03, or a 3% return on productivity).

    From this analysis, it is clear that you would be getting the biggest bang for your advertising dollar using print ads.

    12. Utilize Peer Feedback

    This is especially useful when people who work in teams or groups. While self-assessments can be very useful, the average person is notoriously bad at assessing their own abilities.

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    Just ask a room full of people how many consider themselves to be an above average driver and you’ll see 70% of the hands go up[2]! Now we clearly know that in reality about 25% of drivers are below average, 25% are above average, and 50% are average.

    Are all these people lying? No, they just don’t have an accurate assessment of their own abilities.

    It’s the same in the workplace. Using peer feedback will often provide a more accurate assessment of a person’s ability than a self-assessment would.

    13. Encourage Innovation and Don’t Penalize Failure

    When it comes to productivity, encouraging employee input and adopting their ideas can be a great way to boost productivity. Just make sure that any changes you adopt translate into higher productivity.

    Let’s say that someone comes to you requesting an entertainment budget so that they can take potential customers golfing or out to dinner. By utilizing simple productivity metrics, you can easily produce a cost benefit analysis and either expand the program to the rest of the sales team, or terminate it completely.

    Either way, you have gained valuable knowledge and boosted morale by including employees in the decision-making process.

    14. Use an External Evaluator

    Using an external evaluator is the pinnacle of objective evaluations. Firms that provide professional evaluations use highly trained personnel that even specialize in specific industries.

    They will design a complete analysis of your business’ productivity level. In their final report, they will offer suggestions and recommendations on how to improve productivity.

    While the benefits of a professional evaluation are many, their costs make them prohibitive for most businesses.

    Final Thoughts

    These are just a few of the things you can do when learning how to measure productivity. Some may work for your particular situation, and some may not.

    The most important thing to remember when deciding how to track productivity is to choose a method consistent with your goals. Once you’ve decided on that, it’s just a matter of continuously monitoring your progress, making minor adjustments, and analyzing the results of those adjustments.

    The business world is changing fast, and having the right tools to track and monitor your productivity can give you the edge over your competition.

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    Featured photo credit: William Iven via unsplash.com

    Reference

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