Wednesday, December 22, 2010

Decision Making – Satisficing

You are working at your desk when an employee enters. The Employee has an urgent problem that needs you attention. You distractedly listen to the problem and come up with the first solution that comes to mind that solves the problem and allows you to get back to the work on your desk. This is
Satisficing.
Wikipedia defines (a portmanteau of satisfy and suffice) satisficing as a decision-making strategy that attempts to meet criteria for adequacy, rather than to identify an optimal solution.
When the employee left they were probably satisfied because their problem was solved. You were satisfied because you got back to your work which in the moment was more important.  By solving a problem with the first solution that came to mind, you have created an unwritten policy in the mind of an employee.  A policy the employee will use in the future in similar situations. If it is adequate in the moment and not optimal then you have created a policy that costs you resources each time it is applied.
When you are presented with a problem you should ask yourself first is this an isolated incident or is it a problem that occurs frequently or likely to recur in the future. If the problem is isolated then your quick solution is likely fine. However, if the problem is frequent you should either put off the decision until you have more time to consider the options or take the time at the moment to consider the alternatives.
Make sure you understand the issue fully. Talk to the employee and have them describe in detail the issue. I have found putting it in writing helps because if you cannot write it down clearly them there is likely a misunderstanding of the problem somewhere. Make a list of possible solutions, yours and the employees. If necessary do additional research by either you or the customer talking to the customer to get more background. Explore the cost both in financially and non-financial such as customer relations. Pick the best solution not the first solution that comes to mind. If it is a frequent problem take steps to correct the issue and make a written policy to handle similar situations.
Original Content copyright 2010 Thomas Robinson

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