Idea 54: The concept of value in decision making

Along with analysis and synthesis, valuing is the third essential element of effective thinking and decision making.

As we have seen, the ability to make decisions has two main aspects:

1. Establishing the truth or the true facts.
2. Knowing what to do.

You must take time over the first aspect, otherwise integrity – or adherence to the value of truth – is lost in the process. Thinking first and then deciding what to do is the correct order in decision making. Getting at the truth should make it easier to know what to do.

In many respects, it is better to behave as if truth is an object, something that must be discovered. The truth, and valuing what one discovers, should be seen as ‘objective’, with your own views and conditioning recognized and relied on or discounted as needs be.

When you rely on others, as managers so often do, you may have to sift information from their ‘valuations’ (information plus judgment). This is another form of valuing – of knowing who and when to trust to give you the truth, or the truth backed by acceptable value judgments.

Questioning is a valid part of establishing the credentials of the adviser and the credibility of the advice. Can you trust this person to tell the truth backed by sufficient expertise or insight? You will learn by experience to recognize the people who:

• Tell you what they think you want to hear.
• Express a view that they think might agree with your own.
• Are watching their backs.
• Try to hide things.

Be scrupulous in establishing the truth – ask questions until you are satisfied that you have it right.

You are good at valuing if you can say that invariably you have good judgment; the converse is also true. Knowing the truth or reality can then be followed by deciding what to do.

Also, beware of inaccurate figures (even from accounts departments!), faulty statistics, errors in facts, hidden assumptions and specious assurances – everything must be tested for accuracy and truth.