Exploring decision-making strategies

Now that we understand the different challenges that we humans face in making rational decisions – human decision-making traps and the illusion of averages – we now need a simple, pragmatic decision-making framework that we can use to leverage data and analytics to make more informed decisions.

Informed Decision-Making Framework

Whether we know it or not, everyone creates a model to guide their decisions. Humans naturally develop models to support their decisions, whether it’s decisions about deciding what route to take home from work, what to pick up at the grocery store, or how to pitch to a power baseball hitter like Mike Trout. The comprehensive nature of one’s decision model depends upon the importance of the decision and the costs associated with making a wrong decision. For simplicity reasons, we’ll classify decisions as either low impact or high impact depending upon the costs and ramifications of making...