Five Factors That Influence Every Decision

There are five factors that impact every decision you make.

When you master these factors, you make more money.

This is a leadership skill you cannot live without.

Watch the video multiple times and read the transcript below. The sooner you do, the faster you make better decisions.

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Here’s the transcript for this episode of Four Minute Fixation.

Five Factors That Influence Every Decision

Hi I’m Dave Lorenzo and today’s Four Minute Fixation episode is about decision-making. Specifically, the process we use when it comes to making decisions. Now all of us have had to make huge decisions. Now this involves-, this could involve anything from a health issue to an issue related to buying a home or any major purchase for that matter. In business, these decisions could be worth hundreds of thousands if not millions and millions of dollars. So it’s worth it to give some thought to the process we use when we’re making our decisions. Now along those lines, there are five factors that weigh on us every single time we go to make a decision. These five factors have an impact not only on the process itself but the actual decision. So I wanted to take four minutes today and look specifically at the five factors involved in sound decision making.

Factor number one is time. How much time do I have to make this decision? If you have a short period of time, there’s going to be an enormous amount of pressure on you so there’s always-, it’s always a good idea to make sure you make enough time to weigh all the research and to make sure you’ve done your due diligence. Contrast that with having too much time or an extraordinary amount of time to make a decision; you may not feel enough urgency. So what should you do? If you have to make a big decision, the first thing you should do is find out how much time you have. Ask what the deadline is in order for you to make your mind up, in order for you to make your decision. If it’s a huge deadline, a very long deadline, shorten it and create a deadline just for yourself. If it’s a short deadline, go to work immediately doing the research you need in order to get as much information as possible.

The second factor is control. How much control do you have over the outcome of the situation? Do you have control of all the factors involved in the decision? If you do, you have a whole host of things you need to look at in order to weigh all the possibilities. If you don’t have control of all the factors, immediately list the things that are out of your control and determine whether or not these will have an impact on your decision.

The third element is expertise. What have you been through in the past that has given you some background, some knowledge, some expertise if you will, that will allow you to solve this problem efficiently and effectively? Really, we’re looking at your experience. Have you ever had an experience similar to this and what was the outcome? If you have, great. If you haven’t, who can you find, who can you ask that has the expertise in this area that can offer you some opinions? Who has experience in this area that can offer you some opinions? What did you learn from things in your past that could help influence your decision in the future or right now?

Outcome finality is the fourth factor. How final is the outcome? Once you make your decision, is it the end of the world? If you make a bad decision, how quickly can you recover? What can you do if you make an error? Are there contingency plans that you could put into effect? Outcome finality is critical because some decisions can be reversed very easily. Other decisions are painful, costly, and even potentially irreversible. So how final will the outcome be once you make a decision?

Finally, the unknown. What don’t you know? What information don’t you have that will impact what-, that will impact the outcome? How do you find out what you don’t know? And if there is no way of knowing what the outcome will be or no way of knowing what variables are out of your control or you don’t presently know, how can you deal with the consequences of those?

So the five factors time, control, expertise, outcome finality, and the unknown. Take all these factors into account the next time you have to make a big decision and put a process in place to address each of them ahead of your next big decision. You’ll be glad you did because it will enable you to make better decisions in the long run.

Here are some other resources you should review immediately:

The Best Business Videos On The Planet

Okay, that was an exaggeration.   But the link above will take you to the first 20 episodes of Four Minute Fixation. They are great and you should check them out.

How to Make Better Decisions This is a podcast interview I did with Ori Brafmanthe author of Sway: The Irresistible Pull of Irrational Behavior. Ori helps us make better decisions right in this interview.

Here is a bonus video from our YouTube Channel.

How To Make An Idea Real

If you struggle taking action and achieving your goals, this video is for you.  Watch this Four Minute Fixation video and then use the technique I share each day.  Once you do, you’ll be amazed at how much easier it becomes to get going.