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Switch – Chapter 3, Too Many Decisions@!#

Four scenarios:

1.   Doctors were presented with the case history of man with an arthritic hip and chronic pain.  When presented with surgery or one medication, 47% chose the medication.  When presented with surgery or two medications, 28% chose to use one of the two medications.

2.  In a gourmet food store, on one day, 6 different kinds of jams were presented to customers.  On day two, 24 different types of jams were presented to customers.  The 24 jam display attracted many more customers.  However customers on day one with only 6 options, were 10 times more likely to buy a jar of jam.

3.  A human resource department adds 401k options.  For every 10 options added participation in the 401k goes down by 2%.

4.  Speed dating at a local bar.  Singles meet a series of other singles for 5 minutes each.  Those singles who met 8 others singles made more matches than those who met 20 other singles.  Match means a potential for an extended relationship.

The book explores the term “decision paralysis.”  When we are overloaded with options, we become paralyzed, and can’t and don’t make decisions.  When we are paralyzed, we then create an environment of ambiguity.  According to the authors Chip and Dan Heath, ambiguity is the enemy.

Ambiguity sets in when we try to ferret out all the options or gather all the information. How many organizations cannot make decisions, because they are constantly discussing and weighing the options, the pros and cons?  No decision is worse than your worst decision.  I have witnessed companies lose tremendous opportunities and money because of ambiguity.

Have you ever become frustrated because of your inability to make a decision?  If so, what’s the solution?  This book describes a process called, “scripting and becoming clear.”

My understanding of this is to determine your goal and state it clearly.  Make decisions about your goal using only the bright spots.  After you make a decision move on to the next decision, not dwelling on the past, take your lesson and move on.  And finally, be intentional about what you want and do not want.  The book reports that if the doctors had a more clearly defined goal, to use surgery only as a last option, they could have made much more efficient decisions.

In conclusion, ambiguity makes for confused doctors, lost revenues, inadequate investment in retirement, and lonely singles!  If too many decisions are causing ambiguity in your life, or your business – rebuff it with scripting, becoming clear, and focusing on the bright spots.

Posted on by Jeff

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2 Responses to Switch – Chapter 3, Too Many Decisions@!#

Jen Endsley says: May 12, 2010 at 7:10 am

Very true. I see decision paralysis with adults but it applies to my kids all the time. Using pros and cons for each available option is great but it’s hard to decide between the top options. The advice above is useful in this area.

I think we do waste too much time dwelling on the past or looking repeatedly at work we’ve done – not to change it but to reaffirm we did it correctly. Perhaps that is a procrastination tool so we don’t have to make another decision :)

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