Saturday, May 27, 2017

A632.5.5.RB-Protected Values in decision making

Values are what we find important in our own eyes. We each have values in some form or fashion and it is likely that some of our values differ from our friends, family, and colleagues. In a previous blog, I discussed three of my protected values- equality, accountability, and autonomy. I am sure we all have values that hold more weight than others. Each of us possesses values that we will not hesitate to fight for and do not want to give up. How will these core or protected values affect the decisions we make? Clear (n.d) argued that core values should be a major factor in the decision-making process. According to Hoch, Kunreuther, & Gunther (2001), protected values are important because they guarantee that values will be considered in making every decision. My protected values are very meaningful to me so I would do everything I could to support them. These values also have a major influence on my decision-making process.

Equality has always held a special place in my heart. When I was a child, one day I was talking to my mom about a lesson I learned in history class. I think we were discussing the Great Depression. As the conversation built, I asked her if she believed that she would work in a bank back then like she did when I was a kid. When she said that she would most likely not have a job because she was a woman, I remember being very confused. I thought to myself that she works just like my dad does. She went to school just like my dad did. She cooks and does other ‘grown up’ activities like my dad. So, why would she not be allowed to work like a man did at that point in history? I remember thinking that I would not be like the people back then and vowed to treat everyone equally. Times have changed and inequality has been diminished, but not completely erased.

I believe that justice and sympathy are two subsets of equality, and I have a fire burning inside of me when I witness injustice taking place. I am a very mild-mannered guy. I do not seek out confrontation or conflict. I mean I am an accountant for Pete’s sake. But seeing injustice or inequality take place turns me into a completely different person. Last fall my girlfriend and I traveled to Miami to see Adelle in concert- who has the best voice I have ever seen in person, but that is a different blog for a different day. We were there enjoying the show when I notice some sort of disagreement occurring at the end of our row. It seems that two gentlemen left their seats and were standing at the guardrail inadvertently blocking the view of a lady and her elderly mother. The lady asked them to return to their seat which happened to be directly behind them. They returned to their seats and it seemed like the ordeal was over. But, a couple of minutes later I notice one of the gentlemen taking ice from his cup and throwing it at the older lady. She would look confused for a moment, try to determine the culprit, and turn back around and attempt to enjoy the concert.

After about the fourth time this occurred, the anger grew inside of me and I knew I had to say something. The injustice and inequality were just too much to bear. Why was he picking on this older lady? I did not want to confront him but the protection I have over people being mistreated due to inequality eventually won over my fear of confrontation. I told him that he must stop or I would go get an usher to have him kicked out of the show. In this situation, my protection over equality had a major part in my decision making. There is a chance that if he was throwing the ice at me I would have remained silent, but I could not let him mistreat an older lady.

From a leadership perspective, I would hope to make decisions that would follow my protected values of inequality. I would never make the decision to hire one person over the other based on anything other than experience. I also hope that I would offer equal pay to all employees.

As with inequality, accountability has also always been important to me. I believe that people should be accountable for their actions in all circumstances. From a leadership perspective, accountability is important in building trust. How can followers trust their leaders if they do not feel that they are accountable for their actions? Accountability can also have a huge effect on our decision-making process. How can good decisions be made if the individual is not held accountable for the resulting outcome of their decision? I believe that accountability is crucial not only in the decisions we make but also the reasoning behind the decisions we make. As decision makers, we must remain accountable for the outcomes of our decisions.

I mentioned I have always been a proponent of accountability, but a fairly recent event cranked that passion up to the next level. In April of 2015, my girlfriend and I were returning home from an afternoon of running errands. We were maybe a mile from the house when all of a sudden she turned the wheel to the left toward the median. As I looked up to ask her what she was doing, I saw a car crashing into my passenger door. After the initial shock wore off, I opened the door to check on the other car and to see what happened. There was one problem with this line of thinking- the other car was nowhere to be found. It is a surreal feeling to know you just were involved in an accident and see no car and it took me a moment to realize we were involved in a hit and run.

The guy who hit us was finally caught about 6 miles from the scene of the accident after a short police chase. He blew approximately two and a half times the legal limit and was arrested for DUI, evading, and leaving the scene of an accident with injuries, which were luckily only minor. I share with you this story to let you know how it ends. The gentleman never asked about us and never took accountability for the accident. When the state attorney asked us if we wanted to press charges we told him that if the individual would write us a letter of apology then no additional charges would be pressed. He came back later and let us know that the gentleman did not feel that an apology was necessary. He hired the best attorney in town and got off with no punishment whatsoever.

In most cases, I would not have made the decision to pursue punishment for this man. If it were an accident and he wouldn’t have driven off and would have apologized then I would have gotten my car fixed and chalked it up as a learning experience for the other driver. But this was different. According to Tanner (2016), “Without accountability, execution suffers” (para. 5). This is exactly the case in this example! This man made the decision to drive drunk and run from the scene of an accident and felt no remorse or accountability for his actions. My decision was altered by his decision to not feel accountable for a negative outcome his actions created.

Autonomy is also a value that I feel very protective over. I am not currently a leader on a professional level, but I feel autonomy and empowerment are great in creating a productive worker. Not long after I graduated college I began working at a law firm and was placed in charge of the runners for a period of time. I watched the previous supervisor micro-manage the runners and label step by step how each process should be handled. I decided that I would not like to be treated that way so why would they? I guess the golden rule played a part in my decision to manage them differently. They were all high school and college age, so they could not be completely set free, but the freedom and autonomy they received were appreciated as trust and respect were reciprocated.

 I also believe that autonomy also holds importance in decision making. I would be reluctant to make a decision that takes away anyone’s autonomy. There is usually more than one right way to complete an activity. I have had supervisors tell me that a certain way to do a task is the ‘right way’ and I would think to myself it may be your ‘right way’ but it is definitely not the only ‘right way’. “Empowered people have a sense that when they act, they can produce a result” (Whetten and Cameron, 2016, 370). This statement is important in decision-making as well. Stifling an individual’s way of thinking could alter their decision for the worse. 

In his 2005 Ted Talk, Dan Gilbert discussed our inability to make good decisions in today’s world.
We are the only species on this planet that has ever held its own fate in its hands. We have no significant predators, we're the masters of our physical environment; the things that normally cause species to become extinct are no longer any threat to us. The only thing -- the only thing -- that can destroy us and doom us are our own decisions. (Gilbert, 2005, 23:00.).
I would like to believe that my protected values of equality, accountability, and autonomy help to preserve our world with the decisions we make. We are all human and are made exactly the same so equality would help to create a better society and world. Accountability and autonomy are also important in building trust and respect which help to create a more meaningful world.

Hoch, Kunruether, & Gunther (2001) argued that protected values may have to be traded off when they are pitted up against other highly regarded values. I want to believe that if my values are traded off that it is for something meaningful that will enhance and not hurt the decision-making process. As I previously stated, I do not want to be the threat Gilbert (2005) discussed that could doom our world.

References

Clear, J. (2017). Importance of values: Let your values drive your choices. Retrieved from http://jamesclear.com/values-choices

Gilbert, D. (2005). Dan Gilbert: Why we make bad decisions [video file]. Retrieved from http://www.ted.com/talks/dan_gilbert_researches_happiness

Hoch, S., Kunreuther, H., & Gunther, R. (2001). Wharton on making decisions. John Wiley & Sons, Inc.

Tanner, W. (2016). How to create a culture of accountability in the workplace. Retrieved from https://soapboxhq.com/create-culture-accountability-workplace/


Whetten, D. & Cameron, K. (2016). Developing management skills (9th ed.). Upper Saddle River, NJ: Prentice Hall/Pearson

A632.5.4.RB-How protected are your protected values

There are values that each of us holds dear to our hearts. Some of us may value family and friends. Where some of us may value characteristics such as compassion. Finally, individuals could find value in actions such as telling the truth or fighting for justice. I bet we could all name several actions or characteristics that we value, but what about the values we feel we must protect? According to Irwin & Barron, protected values are considered “absolute and inviolable” (Hoch, Kunreuther, & Gunther, 2001, p. 251). What values do we hold that are so important and protected that we will fight for and refuse any trade-offs? Do any come to mind quickly? As I contemplated about the concept of protected values, I thought of three major protected values that I hold- equality, accountability, and autonomy.

Equality is a something that I have always felt very passionate about. As I grew up in Mississippi there was still a lingering wave of racism and inequality, but I was taught to treat everyone with respect no matter who they are. My parents used to tell me to treat the custodian with the same respect as you would the teacher or principal while at school, so equality was a concept that I was introduced to at an early age. I feel a sense of injustice when I believe someone is not being treated fairly or equally. I believe that each person should be treated the same in each situation no matter what is occurring. As the 1997 Creed song entitled one stated- “why hold back one to raise another” (Stapp & Tremonti, 1997, n.p.).We are all humans and physical differences between us should not warrant inequality. Race, gender, religion, age, sexual preference, or any other difference between humans does not mean that they should be treated differently.

I would like to say that knowledge, education, and experience should be the guidepost as to how individuals are treated in a professional matter, but sadly, there are times where inequality occurs, therefore, limiting knowledge, education, and experience. I believe organizations who begin to recognize that a difference in equality exists will be taking a step in the right direction. Unfortunately, though most organizations would disagree, inequality is all around us with women not being paid as much as men, older individuals not being hired, and Millennials not being hired by organizations.

According to Deyoe and Fox (2011), some managers rewrite job descriptions to eliminate Millennials from being qualified for the position. Not allowing a trade-off in a negotiation due to inequality may cause the company I lead to veer away from the norm in society, but maybe that would be a pro for the company. Maybe taking an ethical step in the right direction will cause other companies to follow.

Accountability is another characteristic or value that I feel very strongly about. I have always been the type of person to fess up when I make a mistake or fail to complete a task that I said I would complete. There are too many instances, both personally and professionally, where people ‘pass the buck’ and fail to be accountable for their actions. According to Ososami, Adeola, & Imevbore (2014), accountability builds trust, improves performance, promotes ownership, and inspires confidence. I once had a supervisor who never took ownership and it affected my performance. There were times where they would blame me for mistakes I did not make and these actions reduced my confidence. On the other side of the coin, I once had a supervisor who nearly missed a deadline for a report due to the state. When they realized their mistake they owned up to the error and asked me to help them work as a team to complete the report. I can tell you from experience that accountability promotes a better outcome.

One con of protecting accountability from trade-offs in the negotiation process is that this trait is not something that most people feel very strongly about. It would be very difficult to me to agree to end a negotiation knowing that accountability was dismissed. As a supervisor or leader, I would not agree to any situation knowing that someone else would have to be held accountable for a mistake or decision I made. The advantage of accountability is the positive effect it could have organizational productivity and culture. According to Ososami, Adeola, & Imeybore (2014), “By building a culture of accountability on the onset, you rid your organization of ineffective behavior, put the right people in the right jobs, and send the message that you’re serious about excellent work” (para. 3).

Autonomy is also a value that I find the need to protect. I believe every employee should be offered autonomy in the manner in which they complete their work. According to Nauert (2015) workers who experience autonomy in the workplace are both more productive and happier. Micro-managing is an activity that I do not care for one bit. In fact, the times that I have worked for a leader or supervisor who found it pertinent to micro-manage, my production, confidence, and overall attitude seemed to decline. One of my previous supervisors liked things completed in a very particular order and manner; including the comments made in the spreadsheet while reconciling an account. They would constantly check on me and ask what I was working on. I also have had supervisors who gave me complete freedom to design spreadsheets in the manner in which I prefer and work in the order that I feel increases my productivity. They did not follow my every move and make sure I was doing each task the way they wanted it completed. The supervisor who allowed me to have autonomy received a greater amount of production and a more positive employee.

The advantage of autonomy in a workplace will be a stronger culture. The employees will feel like they have a voice in how the organization functions. I would be hesitant to trade autonomy in order to end a negotiation. The one con could be that there are employees that would not be able to have autonomy. Some employees may need to be on a shorter leash, so the idea of inequality may begin to take shape.

In his 2014 TED talk, Simon Sinek argued how good leaders should make their employees feel safe. Sinek (2014) stated that if leaders work to make their employees feel safe then production and work ethic should increase. My protected values of equality, accountability, and autonomy are methods to make employees feel safe. Hoch, Kunreuther, & Gunther (2001) stated that some individuals attempt to hold on to these values in situations where they values complicate the situation. I understand that there will be times where these values would have to be reconsidered in a negotiation process.  

References

Deyoe, R. H., & Fox, T. L. (2012). Identifying strategies to minimize workplace conflict due to generational differences. Journal of Behavioral Studies in Business, 5, 1-17. Retrieved from http://search.proquest.com.ezproxy.libproxy.db.erau.edu/docview/1035289108?accountid=27203

Hoch, S., Kunreuther, H., & Gunther, R. (2001). Wharton on making decisions. John Wiley & Sons, Inc.

Nauert, R. (2015, October 06). Worker Autonomy Can Lead to Greater Productivity, Satisfaction. Retrieved from https://psychcentral.com/news/2011/01/25/worker-autonomy-can-lead-to-greater-productivity-satisfaction/22885.html

Ososami, W., Adeola, D., & Imevbore, E. (2014). Importance of Accountability in Leadership. Retrieved from http://leadinglikeachampion.com/importance-of-accountability-in-leadership/

Sinek, S. (2014). Why good leaders make you feel safe [TEDGlobal]. Retrieved from: https://www.ted.com/talks/simon_sinek_why_good_leaders_make_you_feel_safe?language=en


Stapp, S., & Tremonti, M. (1997). One [Recorded by Creed]. On My Own Prison. Tallahassee, FL: The Kitchen Studios

Saturday, May 20, 2017

A632.4.4.RB- Deception in Negotiations

Negotiations are situations that we learn about at an early age. For me personally, everything seemed to be a negotiation as a child. Like most parents, my mom or dad would tell me that I would have to finish my vegetables before leaving the table or having any desert. At that point, my negotiation skills, or what I thought at that time were my negotiation skills, would kick in and I would begin bargaining about eating three or four bites of my vegetables, but not all of them. After a lengthy debate, an agreement would usually be made satisfying both parties, or they may have just given up. I would also try to negotiate bedtime or when I had to come in from playing outside.

Some individuals tend to gain pleasure out of the negotiation process and some do not. Some people tend to be great negotiators as life progresses, but my negotiation skills ended during my teenage years. In a negotiation, there are times where the other party can attempt to deceive or mislead me so information should be evaluated during the negotiation. There are also times where I have been the deceitful party by overstating a claim.

How common is it to be lied to in a negotiation? According to Hoch, Kunreuther, & Gunther (2001), “100 percent of negotiators either failed to reveal a problem or actively lied about it during negotiations if they were not directly asked about the issue” (p.189). So everybody lies about potential issues or glitches during a negotiation? That seemed unreal to me! I began to reminisce about the times a problem was not revealed to me during a transaction or negotiation and realized that most people are not upfront about potential issues during negotiations. In high school, my parents bought me a car and very shortly after the purchase the timing belt snapped causing major damage. Turns out the previous owner knew that the belt had been slipping but failed to mention that information during the sale.

According to Bolton and Croson (2012), some parties seem to profit by withholding or misrepresenting the information they possess. Another example of being misled took place when we purchased our home. In 2010 we wanted to quit renting and buy a house and decided it was time to act. One of our good friend’s mom was in the real estate business so we began working with her because we knew she was trustworthy. We looked at dozens of houses over many weeks until we finally found a neighborhood that had a couple of houses left. The neighborhood consisted of ‘pick-a-plan’ houses but we were excited about the possibility of owning a new home. As we spoke to the other agent about possibly buying a home in the neighborhood he had one selling point that he mentioned multiple times during the visit. The lot we were interested in sat against some woods and he continued to tell us that no one could ever build behind us because the land is zoned as a nature preserve and it would be against the law to build. After much deliberation, we bought the lot and moved into our home in June 2010.

Fast-forward to about three years ago when we received a notice in the mail that a hearing will take place to determine if the nature preserve behind our home can be re-zoned to allow a project to be built. The hearing went the way of the builder as they were approved to start a project directly behind us. The project began about two months ago with the cutting down of all of the trees behind our property. The final product will be a neighborhood of nearly 1,200 houses and a strip mall. Several of the other houses on our side of the road that back up to the new construction project have been put up for sale as they were all told that they would never have new construction or neighbors behind them. I am not sure if the company that built our neighborhood knew this was a possibility and simply left out that information, but it is obvious that the new construction project altered the way many families feel about our neighborhood. 

Because it is not always evident when someone is lying to you, how do we shield ourselves from deceitful statements and tactics during a negotiation? There are several methods to uncover deception such as vocabulary used or not used, verbal and nonverbal cues, and visual clues. “The best defense against deception is taking steps to reduce the likelihood that people will use deception in the first place” (Hoch, Kunreuther & Gunther, 2001, p. 194). There were four evaluation methods that caught my attention including establishing trust, asking direct questions, paying attention to non-verbal cues, and keeping records and getting things in writing.

Trust is one thing that I strive to create in a relationship. Hoff (2016) stated that trust was the glue that keeps a relationship intact. A relationship or negotiation can fall apart at the blink of an eye if trust is lacking in the equation. Hoch, Kunreuther & Gunther (2001) indicated that a person should make it evident that deception will not be used in an effort to establish trust. While in the negotiating process an individual should also make a point to ask direct questions. According to Hoch, Kunreuther & Gunther (2001), there is a 61% chance that the other party will reveal a problem if asked directly. If you have a concern or question about a specific issue then do not hesitate to ask.

Paying attention to non-verbal cues is also extremely important in a negotiation. According to Mishra (n.d.), non-verbal cues consist of about 80% of all communication and can solely give out important messages.  One thing I have learned throughout my years as a professional is to keep records of interactions. There have been times where I have been asked to do something by a co-worker or supervisor only to later be questioned about my actions. The same tactic should be taken in a negotiation. Some individuals may try to back out of what was agreed upon. It could be because they decided later that they are no longer willing to make the agreement or that they just simply had forgotten certain aspects were part of the agreement. If you are taking notes and records during the negotiation then the other party will more than likely choose their words more carefully.

In negotiations, I tend to be what Hoch, Kunreuther & Gunther (2001) defined as either reasonable or a cream puff. I rarely attempt to deceive or manipulate and am very trustworthy to the other party, which is not always the best philosophy. I can’t even say that I ask direct questions or pay attention to non-verbal cues. But, one example does come to mind where I overstated my claim in a manner that was deceitful.

A couple of years ago, an employee left our department and I was presented with the opportunity for a promotion. The Vice President of the department came to me and said that I have been chosen to as a replacement for this individual and told me my new salary. He also said the President of the College would like to know my decision by the following morning. A wave of emotions hit me as I was happy, nervous, and unfulfilled all at the same time.

 I was overjoyed to be offered a promotion and pay raise but was skeptical about going into the position because of the manager I would report to. I had previously worked for this individual and applied for and received a lateral transition because of them. I also knew the amount of work involved with the new position and that I was the only one in the department with any experience in this particular area. Although I was going to take the position, I told my VP that I would need a higher salary (and told them the number) to take the position.  They said that he would have to talk to the President and called me about thirty minutes later and told me we had a deal. I am usually not a person that would be deceitful to leverage a deal but there were many factors that led me to try something different that particular time. The decision and negotiation worked out well as I enjoy the duties of my job and I no longer work for that supervisor.

Negotiations can be stressful and unsatisfying as it is sometimes difficult for both parties to feel like a winner after the negotiation. Some individuals will deliberately be deceitful so you must use methods to guard against deception during the negotiation. There are also times when an overstated claim can be used to leverage your position, but, in my opinion, those instances should be used utilized sparingly.

References


Hoch, S. J., & Kunreuther, H. C. (2005). Wharton on making decisions. (1st edition.).Hoboken, NJ: John Wiley & Sons Inc.

Hoff, N. (2016). The importance of building trust. Retrieved from http://www.huffingtonpost.com/naphtali-hoff/the-importance-of-buildin_1_b_9366838.html


Mishra, S. (n.d.). Why non-verbal communication is important? Retrieved from https://www.businesstopia.net/communication/why-non-verbal-communication-important

Saturday, May 13, 2017

A632.3.4.RB-Reflections on decision making- Trey McNeil

This week I had the opportunity to read about frame blindness and framing traps. While reading about frame blindness my first thought was the blind spots that occur while driving a car or a boat. When I was a kid my dad had a boat and one day he was teaching me to drive the boat. He told me how to steer and how to the throttle the boat, but did not think about the blind spots that could result from my height. I thought I was doing great when all of the sudden he jumped over and frantically turned the wheel. My blind spot almost caused me to hit a skier that was waiting for their boat to come back and get them. The propeller from our boat destroyed their ski rope, but the situation could have been much worse. Both my father and I learned a very valuable lesson that afternoon about blind spots and the poor decisions that can result when they are ignored.

When I think of framing traps I picture Tom trying to catch Jerry. He always came up with very elaborate traps but was rarely able to catch Jerry. The reason that Jerry remained unscathed the majority of the time was because he was prepared for the traps. But what happened when Jerry made a mistake or became overconfident? Tom would usually catch him and think that he had his next dinner. Though this example is a cartoon, framing traps and frame blindness can also occur in our everyday decision-making. Most people do not realize that their decisions and views can be distorted or oversimplified by framing traps (Hoch, Kunreuther, & Gunther, 2001). Just like when we drive a car or boat, we must learn to check our blind spots when making decisions. Hoch, Kunruether, & Gunther (2001) offered three traps that I have had the misfortune of falling into and must now be on the lookout for in overconfidence, frame blindness, and recognition of your key assumptions.

Overconfidence is one trap that I fall into quite often. My overconfidence comes in many forms whether it be thinking I can go for a run when it has been six months since my last run, thinking I know where I am going because I have been there before, or thinking I can assemble the new desk in an hour because ‘that is what the instructions say’ (which I usually am still trying to get it together a couple of hours later). According to Hoch, Kunreuther, & Gunther (2001), “most of us suffer from a well-documented tendency to overestimate what we know, which contributes to our tendency to overvalue the relevance of our own frames and undervalue the relevance of others” (p. 140).  Confidence is a great trait to possess but overconfidence can be harmful. According to Dr. Joyce Ehringer, “larger amounts of overconfidence can lead people to make bad decisions and to miss out on opportunities to learn” (Berry, 2016, para. 11). I recall one incident in particular where my overconfidence led to a poor decision.

When I was in college, I had a friend who was going to present a guest sermon at one of the local churches. My roommates and I were going to show our support, so we all piled in the car and headed off to the church. One of my roommates had asked me several times if I knew where the church was located as he wanted to get directions. I was confident that I knew exactly where the church was because I drove by it occasionally. With a smile on my face, I took us directly to the church and we arrived a couple of minutes early. Well… at least I got us to a church. But, unfortunately, it was not the right church. Because this was before the advent of MapQuest or Siri, we frantically tried to find the correct church and did eventually but arrived late. We missed his sermon and I felt really bad about the whole situation. The incident even got me a nickname that stuck for the next couple of years…Magellan.

So, could I have framed this situation differently? Yes! I could have taken my roommate’s advice and got directions before Sunday morning. I could have tried to find the place on Saturday to make sure I knew its location. This example taught me a couple of life lessons. The first lesson was that I should make it a point to be prepared. I also learned that overconfidence can be risky in that it caused us to miss an event.

Frame blindness is also an action I occasionally commit leading to poor decisions. Frames are important because they allow us to streamline our attention to what we believe is most relevant and help us make decisions quickly, but there are instances when you can make decisions based on the wrong frame and be oblivious to this fact (Hoch, Kunreuther, & Gunther, 2001). I made this mistake in dealing with my pets and it opened my eyes to my actions.

My family was a dog family, so I was never around cats growing up. Not long after my girlfriend and I moved in together her boss was going to take their cat to a shelter as they could no longer keep her because they found out one of the kids were allergic. She had been declawed, so making her an outside cat was out of the question and would have been inhumane. We talked it over and decided it would be best to take her. My girlfriend had cats as a child so they began to bond very quickly. I did not have as much luck bonding with her in the beginning. I was committing frame blindness and treating her like I treated my dogs growing up. It took a while for the lightbulb to go off and for me realize that cats and dogs respond differently to similar behaviors. Cats have a tendency to scream in the middle of the night. Cats walk on the kitchen counters no many how many times you tell them not to. They even like to be petted differently than dogs. So, I had to adjust my thought process and decision-making once I realized that she does not like to be treated like a dog. We have now had the cat for over eleven years and the cat and I have had the opportunity to bond.

The cat and dog scenario made me begin to think about people in general. If I was blind in how I treated my pets am committing the same mistake with people? There are many different Myers-Briggs personality types and all people do not react in the same way to the same scenario. I should be more careful and make sure I am not blindly treating people exactly the same in the decisions I make.

In describing the elements of critical thinking Nosich (2012) stated that assumptions were everything that is taken for granted as you think about a subject. One technique to avoiding frame blindness is to recognize our key assumptions. There were two recent situations where I did not bring my assumptions to the surface creating a poor decision (Hoch, Kunreuther, & Gunther, 2001).

I have previously mentioned that my organization recently transitioned to a new computer system. During the transition, I relied on my assumptions and did not question if some of the procedures would be altered. When it was time to bill scholarships, I went through the normal routine of building the spreadsheet and creating the journal entry for the encumbrances. When I sent the journal entry to my supervisor for approval, she questioned why I went through the process of the old billing technique when the procedure was going to change. Gilbert (2005) warned that decisions based on the past could cause mistakes. I did make a poor decision by acting on my assumptions. I should have questioned my supervisor about the new procedure because my actions created wasted time.

Last month my assumptions led me to another poor decision. The Foundation recently hired a new Executive Vice President (EVP) and I did not communicate with her about the reports that she would like to present at the Board meeting. I operated under the assumption that she would like to present the same types of financial reports that we presented under the previous EVP, but that was not the case. My decision based on assumptions caused extra work and wasted time.

Through this exercise, I learned that even though I claim to be prepared, I have the propensity to make hasty decisions based on frame blindness. I must slow down my decision-making process and watch out for the framing traps that are associated with every decision. In retrospect, the traps were not mice traps but more like bear sized traps that should have been evident. I must continue to be cognizant of my frame blindness while keeping my confidence at a healthy level and recognizing my key assumptions.

References


Gilbert, D. (2005). Dan Gilbert: Why we make bad decisions [video file]. Retrieved from http://www.ted.com/talks/dan_gilbert_researches_happiness

Hoch, S., Kunreuther, H., & Gunther, R. (2001). Wharton on making decisions. John Wiley & Sons, Inc.

Nosich, G. M. (2012). Learning to think things through: a guide to critical thinking across the curriculum (4th ed). Boston, MA: Pearson


A632.3.3.RB-Framing complex decisions- Trey McNeil

Decision-making is not always easy or straightforward. Some decisions can be extremely difficult and involve multiple steps. Some decisions must include other elements to provide the greatest opportunity for success. Hoch, Kunreuther, & Gunther (2001) offered three methodologies of dealing with difficult or multi-step decisions including (a) navigating systemic complexity, (b) navigating multiple stakeholders, and (c) navigating environmental complexity. All three examples could be useful to incorporate in the decision-making processes of my organization.

Complex decisions are not something that we usually look forward to. Decisions can be complex because of the number of people affected. They could also be complex by the amount of data (either too much or too little) provided. According to Hoch, Kunreuther, & Gunther (2001) “Data is not the only factor driving complexity. Further complexity is created by interactions across multiple decision boundaries surrounding a particular decision context” (p. 122). I interpret this statement as ‘how can an organization evaluate and study data to create optional decisions’. One option in navigating systemic complexity is to utilize a computer model.  My organization takes advantage of computer models when making decisions.

According to Lewis and Otto (n.d.), a computer model helps assess large amounts of data to ease the decision-making process. One way the college utilizes computer models is in attempting to predict enrollment and more specifically how enrollment will affect the college budget. As a member of the Florida College System, Daytona State College (DSC) does receive state money, but a large portion of college revenue is based on enrollments. To estimate enrollment for the following academic year, the college will use the research they have gathered (number of students graduating from local high schools, enrollment from the previous, current retention, etc.) and enter it into a computer model to help predict enrollment. The calculation is used to help project revenue for the upcoming budget. A computer model allows for the data to be changed so the leadership of the college is able to strategize for many different enrollment scenarios. This data is useful in helping to predict enrollment but can create complexity when creating the budget. Depending on the chosen enrollment prediction, the college budget must be updated. If the model predicts a decrease in enrollment then expenses must also be cut. But where does the college cut? Should cost center managers be asked to travel less? Does the college create a hiring freeze? Should the purchase of capital assets (such as desks and computers) be ceased until final the enrollment numbers are in for the first semester? These are the types of complex decisions that must be considered each year.

We also use a computer model in the Finance department to help ease the decision-making process. Each accountant has a ‘dummy’ version of the accounting system that can be utilized to test processes and procedures. This version is not live so it will not affect the data in the system. This test system is often utilized by the department when considering an update of change to a process. A couple of years ago my supervisor and I were considering changing the process of encumbering expenses. We were able to utilize the test system to run several different scenarios and develop a strategy. The final outcome was that the system did not perform the way we wanted it to so we did not alter the procedure. But, the test system was a great resource in navigating the systemic complexity involved in decision-making.

One consequence of computer models at the college involves the data. If the data that is input into the models is incorrect in any way then the model could taint your decision. The computer model is only as good as the data that is input, so college leadership must be careful with the data. Hoch, Kunreuther, & Gunther (2001) stated that intuition should be paired with computer programs to increase the chances of a good decision and their information is useful in this scenario.

Like many organizations, Daytona State College has many different stakeholders and decisions become complex when trying to satisfy everyone involved. The stakeholders at the college include (a) the students, (b) the faculty, (c) the staff, (d) the community, and (e) the Board of Trustees. All of the decisions made by the college will not satisfy each group of stakeholders.  According to Rykrsmith (2010), going in many different directions and trying to please all stakeholders assures that you will not be moving forward, so you must decide who you need to please in order to make good decisions. Our number one goal at the college is the students. The college mission is hanging on a wall in every department on campus stating that our number one goal is student success.  In the pecking order of stakeholders at the college, unfortunately, the faculty and staff bring up the rear. Hoch, Kunreuther, & Gunther (2001) stated that companies should listen to their stakeholders and that is what DSC did when creating the new computer system.

When shopping for a new computer system, the college administrators made sure to put students first. In trying to please a large range of stakeholders, sacrifices must be endured.  I had the pleasure of attending several meetings in which a demonstration for a potential computer system took place. The leadership of the college always made sure to question how this process would affect the students. Would it be a large learning curve for students to access their online class or check their grades? There are modules that were purchased that caused more work for the faculty or staff to limit the student’s effort.

A consequence of having multiple stakeholders is not being able to make a decision that will please everyone simultaneously. In the example of the new computer system, a decision was made knowing that extra effort will be put forth by staff and faculty. But, ultimately, the students are the customers so the majority of decisions must incorporate the effect on students.

Environmental factors can also affect the decisions made at a company. Theme parks such as Disney World and Universal Studios must factor weather into their decisions. The traditional wet summers in Florida (although the last couple of summers have been anything but wet) can affect the decisions of an organization that relies on their customers being outdoors. Insurance companies must worry about factors such as weather to roadwork. Roadwork makes the roads more dangerous causing more wrecks and a greater number of insurance claims. DSC faces environmental factors in the form of the local economy and the weather in decision-making.  

According to Chen (2016), community colleges see enrollment soar in times of a bad economy. A bad economy (and increased enrollment) can play a major factor in decision making. Between 2010 and 2012, the central Florida economy had come to a standstill. Unemployment rates were on the rise as vacant jobs were nearly non-existent. During those years, the college saw an enrollment increase of nearly twenty-five percent. The college made the decision to expand programs and hire additional staff.

Environmental and economic factors can have a positive or negative effect on decision making, and as the saying goes, what goes up must come down. When the local economy began to strengthen, enrollment began to plummet leading to negative consequences for the college. The decision had to be made to decrease staff and cut some of the newly added programs.

In Florida, one environmental factor that can lead to complexity is the weather. Each year, Florida is threatened by multiple hurricanes. The leadership at the college must play a deadly game of chicken with the weather. The weather must be watched with intense focus to make decisions regarding the canceling of classes. The decision-making process involves productivity versus safety when weather threatens. The college has only closed twice in my nine-year tenure due to weather. In the fall of 2008, we had an unnamed storm heading directly to Daytona Beach. After what I can only imagine as much deliberation, the college decided to close on a Wednesday afternoon and reopen on Monday morning. After the decision was made, the storm did not do much damage and the college could have stayed open.

Last fall the college once again closed for weather and this time the decision was warranted. Hurricane Matthew was on a mission to hit the coast of central Florida head on. There was a chance that my small beach town would be devastated. The college decided to close and encouraged students and employees to leave the area. Luckily, Matthew swayed just enough a couple of hours before landfall to only sideswipe our area. The weather is an environmental factor that always has a chance to influence decisions at the college.

The three methodologies of navigating systemic complexity, managing multiple stakeholders, and navigating environmental complexity all play major roles in the decision-making process of the college. It would be amiss of me to try to determine which methodology is more important in the decision-making process of the college as they are all utilized in a different manner.

References

Chen, G. (2016). Why student enrollment rises as the economy falls. Retrieved from https://www.communitycollegereview.com/blog/why-student-enrollment-rises-as-the-economy-falls

Hoch, S., Kunreuther, H., & Gunther, R. (2001). Wharton on making decisions. John Wiley & Sons, Inc.

Lewis, B., & Otto, D. (n.d.). Using computer models to help make decisions. Retrieved from http://www.centurionconsultinglaw.com/arp47LAWOCT.html


Rykrsmith, E. (2010). Decision making with multiple stakeholders. Retrieved from http://www.quickbase.com/blog/decision-making-with-multiple-stakeholders

Saturday, May 6, 2017

A632.2.3.RB-Sheena Iyengar-How to make choosing easier- Trey McNeil

I was initially introduced to Sheena Iyengar in my first graduate level class, MSLD 500. We were asked to complete a blog entitled Ballet Slippers or Adorable and had the pleasure of listening to a TED Talk by Ms. Iyengar. I really enjoyed that speech and how she presented herself and her ideas and hoped I would get the opportunity to view another one of her TED Talks. This week I received that opportunity when I was asked to view her TED talk entitled How to Make Choosing Easier in which she explains the idea of choice overload. Iyengar (2011) discussed her research in which she tried to determine how an individual would react and the outcome of being faced with choice overload. In most cases the more choices offered to an individual, the less likely they are to choose.

Iyengar (2011) discussed a grocery store that she liked to visit while in college that was known for their variety of products including nearly 350 types of jam. My first thought was that the grocery store would be a very nice place to visit. She mentioned that tourist would visit each day to take pictures of the various products offered. The lines of jam, peanut butter, and chocolate would be something I would love to see one day if I had the opportunity. But then I began to shift my thought process to visiting the store as a consumer. If I had to decide which peanut butter I wanted and had a choice of several hundred then I may suffer from analysis paralysis. According to Chua (n.d.), one description of analysis paralysis is to spend a very long time thinking over a single decision. In this instance how would I choose an item? Would I be vanilla and go with the product I have always used? Would I decide strictly on price? Would I take an Eastern philosophy approach mirroring Japan’s Samurai ethic, Bushido, and begin to practice patience and frugality while standing all day in one aisle trying to make a single decision (Hoch, Kunreuther, & Gunther, 2001)? Or would I eventually give up and either just grab something at random or decide that a peanut butter and jelly sandwich is not worth all of the hassle and stress?

Iyengar (2011) stated that choice overload can lead to three major consequences including (a) the reduction of engagement, (b) the reduction of satisfaction, and (c) a reduced decision quality. Today’s society is under the impression that more choice equals more success. We do not have the luxury of snapping our fingers and having thousands of choices disappear, so, in a world full of hundreds of varieties of products, how can we reduce the stress of choice overload? Iyengar (2011) offers 4 methodologies to improve the act of choosing including (a) cutting products and options, (b) concretizing, or making choices vivid, (c) categorizing the choices, and (d) conditioning for complexity. As I listened to the explanation of each of the methodologies, I began to wonder if any of the methods would be useful to me when faced with choice overload. Two of the methods were particularly appealing- cutting and categorizing. I realized that both of these methods would be useful in both my personal and professional life to help me thrive in the art of choosing.

We have all heard the slogan that less is more. In a world full of hundreds of options for each product, the slogan becomes reality. If companies are able to rid themselves of several inessential products then they could see an improvement in their bottom line while providing a greater choosing experience for their customer. According to Iyengar (2011), “When the Golden Cat Corporation got rid of their 10 worst-selling cat litter products, they saw an increase in profits by 87 percent -- a function of both increase in sales and lowering of costs” (7:40). 

A couple of months ago, I was at home sick with the flu. Since I was not able to do much, I decided it would be a good idea to pick out a movie and relax. When I began looking at all of the DVDs I could not decide where to begin. With a subscription to Netflix and Hulu, it is rare that I choose a DVD as entertainment and had forgotten how many DVDs we actually own. I sat on the floor in front of the entertainment center for about thirty minutes trying to make a decision on what to watch and did not have any luck. I was frozen between some of my favorites and some of the movies we bought on sale and I never watched. I thought to myself, how can something as simple as picking out a movie to watch be so complicated. Iyengar (2011) stated, “we tend to choose not to choose even when it goes against our own self-interest” (4:20). After many unsatisfying minutes, I simply decided a movie was not worth the hassle and went to bed.  In this example, I became frustrated with not finding an acceptable movie and let emotions get in the way of my decision. Hoch, Kunreuther, & Gunther warned that emotions can lead to “unproductive coping habits such as avoidance” (p. 108).

Fast-forward to about two months ago when my girlfriend decided that we should watch a DVD because it was a rainy and lazy Sunday afternoon. I told her about the debacle I faced the last time that I attempted watching a DVD. She told me she had a solution to the problem. She picked out five movies and asked me to choose one to watch and the choice was much easier. In this case, less was definitely more.

There have been instances where reducing the number of options has also led to productivity in my professional life. I am the accountant for the Foundation at Daytona State College and we have approximately 450 active projects (scholarships). Each year the college holds several events around campus where the Foundation is allowed to ask for employee donations.  Up until a couple of years ago, the Foundation employees would hand out a list of all of the scholarships and ask for employees to donate to the scholarship of their choosing. I do not know about you, but I do not have the time or energy to read a list of a couple of hundred scholarships, especially when I am at a health fair or carnival. The fundraising campaign for employees was not going as well as the Foundation hoped it would, so a decision was made to cut down the options. The employees now can view a much shorter list of 20 to 25 of the most popular scholarships and descriptions to determine where they would like to donate. The shortened list helped the Foundation see an increase in employee donations and the Foundation now receives approximately $1,500 per month as a result of employee donations.

In describing categorization, Iyengar (2011) stated that categories must say something to the chooser. I recently saw this description of categories in attempting to pick an elective for my graduate program. I spoke with my advisor and she said that the only restriction on my electives is that they must be selected from the College of Business. I thought to myself that the decision shouldn’t be too difficult and asked my advisor for a list of approved options. When I received the list, I quickly realized that I was wrong as there must have been at least 75 options on the approved list. I began to read the course descriptions and realized I was fighting a losing battle as there were simply too many to choose from.  I had a second conversation with my advisor and told her that I was lost and having difficulty choosing my electives. She then emailed me a list of a couple of electives broken into categories. The list contained accounting classes, additional leadership classes, and other.  When the choices were categorized, the decision was much less painful. I now have two options that I am considering for my final elective.

One of my job responsibilities is to prepare quarterly financials to be delivered at the Foundation Board Meeting. When I was new to the job, one of the reports we delivered on a quarterly basis was a list of all of the active scholarships and their balances.  In one of the first board meetings I attended, one of the members commented that the list of balances by project number was great, but it did not help him much as a board member. He stated that his goal as a board member is to help the Foundation raise funds in an attempt to award scholarships. He indicated that if a donor came to him and asked what area of the Foundation was in the most need for donations then the list was worthless to him. He said that a list broken down by area would be more effective.  So, we developed divisions (or categories) such as general, math, humanities, nursing, athletics, etc. Each project, or scholarship, is assigned to the division that best fits the donor’s wish. The quarterly reports were also updated to include a list of the scholarships by division. Now the board members are able to see that, for example, the technical scholarships are in need of donations and make an effort to raise funds for that category.

The four methodologies discussed by Iyengar (2001) were all very helpful in making choices. But there are also other ways I can improve my ability to decide. The first concept is limiting my emotion in the decision process.  Hoch, Kunreuther, & Gunther (2001), stated that minimizing negative emotions plays a large role in making sound decisions.  Another way to improve my decision-making process is to identify my goals and begin taking steps to get there. These techniques combined with the aforementioned methodologies should allow for an improved experience in choosing.

References

Chua, C. (n.d.). How to stop analysis paralysis and make great decisions quickly. Retrieved from https://personalexcellence.co/blog/analysis-paralysis/

Hoch, S., Kunreuther, H., & Gunther, R. (2001). Wharton on making decisions. John Wiley & Sons, Inc.


 Iyengar, S. (2011) Sheena Iyengar: How to make choosing easier | Video on TED.com. TED: Ideas worth spreading. Retrieved from http://www.ted.com/talks/sheena_iyengar_choosing_what_to_choose.html