As advisers we often witness or are directly involved with the decision making process of our clients.
Whether that decision is merely the purchase or sale of some shareholdings or a significant property purchase the process to reach that decision varies from client to client.
There are basically two kinds of decision making processes.
Justified - Decision already made just need to justify it.
Selective - Gathering Facts and assessing alternatives.
Whilst many good gut decisions are made and then justified after the event by far the more consistent and considered approach particularly to those who are risk adverse is the selective approach.
The steps to a selective approach are relatively simple to implement
- Gather the Facts
- Identify a number of alternatives
- Assess those alternatives
Personalities and emotions often influence decision making but if you consider the four steps to the selective approach poor decisions are likely to be less.