Designed to help companies in any industry make fewer mistakes, The Economist Guide to Decision Making is an in-depth look at the tools and techniques for preventing errors and improving efficiency. Exploring how and why decisions go awry in the first place; what decision-makers can do to counter the psychological, social, and other forces that can undermine individual judgment and pull organizations off course; and highlighting often overlooked aspects of the science of decision making, the book illustrates how mistakes really happen so that they can be better avoided.
Drawing on examples taken from companies around the world, including Motorola, EMI, and the London Stock Exchange, as well as gold mines in South Africa, and food contamination scandals in China, The Economist Guide to Decision Making thoughtfully considers how companies can be more effective and improve their decision-making strategies.
Decision making can never prevent mistakes entirely, but a better understanding of how to improve practices and processes is invaluable for companies looking to increase their overall efficiency. The Economist Guide to Decision Making leads the way.
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Helga Drummond is Professor of Decision Sciences at Liverpool University Management School. She has previously held three non-executive directorships in connection with the Ministry of Defence and was an independent non-executive member of the audit and finance committees of the Royal Institution of Chartered Surveyors (RICS). She has been a member of the Court of Leeds University and has contributed to the delivery of the Manufacturing Leaders' Programme at Cambridge University. She is a lay member of the fitness to practise committee of the General Optical Council and of the Joint Council of the Inns of Court appointed by the Bar Standards Board, an independent member of the Defence Scientific Advisory Council and an external examiner for the Oxford University MBA programme. She is the author of 11 previous books and has written for the Financial Times, the Guardian and London Business School's Business Strategy Review.
In theory, decision-making is simple. The goal is defined, the possible options for achieving it identified and analysed, and the one that seems most effective is selected. No organisation makes perfect decisions all the time. Ultimately, there is nothing for it but for decision-makers to "put up the money and roll the dice." Yet there is no need for firms to learn the hard way. The starting point is to distinguish between a mistake made amid the fog of war and a systematic error of judgment. Nothing can be done about the fog of war, but systematic errors – the different types of "traps" – that result in flawed decisions are avoidable. This book is about why bad decisions are made and how to make better ones. In addition to an introduction and some closing thoughts, it has ten chapters:
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