Product Description

Where should I live?
Is it time to switch careers?
What is the best course of action for me?

Decisions shape our experiences, from choosing which job offer to accept, to buying the right car, to selecting a good accountant. How do we know which choice is the smart one? How can we be consistent and confident in our decisions? In this book from the three leading authorities on decision-making, readers learn how to approach all types of decisions with a simple set of skills developed by professors from Harvard, MIT, and the University of Southern California.

Combining solid research with common sense and practical experience, this user-friendly guide shows readers how to assess deep-seated objectives, create a comprehensive set of alternatives, determine likely consequences, make tradeoffs, and grapple with uncertainty. Not only will readers learn how to make decisions, they will learn how to make the smartest decisions. For anyone caught at a confusing crossroad–whether you’re choosing between mutual funds or deciding where to retire–the Smart Choices program will improve your decision-making abilities immediately, and make your life more rewarding and fulfilling.

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Product Details

• Amazon Sales Rank: #38059 in Books
• Published on: 2002-03-05
• Released on: 2002-03-05
• Original language: English
• Number of items: 1
• Binding: Paperback
• 256 pages

Features

• ISBN13: 9780767908863
• Condition: NEW
• Notes: Brand New from Publisher. No Remainder Mark.
• Click here to view our Condition Guide and Shipping Prices

Amazon.com Review
Have you ever hired someone only to regret your decision two months later? Or looked at your financial portfolio and wondered why you bought the stocks you did? In Smart Choices, authors John S. Hammond, Ralph L. Keeney, and Howard Raiffa take the guesswork out of the decision-making process and offer a systematic approach to making the right choice. Most of us have problems making decisions, because we've never learned how. The authors write:

Despite the importance of decision making to our lives, few of us ever receive any training in it. So we are left to learn from experience. But experience is a costly, inefficient teacher that teaches us bad habits along with good ones. Because decision situations vary so markedly, the experience of making one important decision often seems of little use when facing the next.

Smart Choices outlines eight elements involved in making the right decision, from identifying exactly what the decision is and specifying your objectives to considering risk tolerance and looking at how what you decide on today influences what you may decide in the future. The book is full of real-life situations and scenarios that effectively illustrate each element of a good decision. If you think the topic of making the right choice is mundane or a simple matter of common sense, then think again. Smart Choices will relieve you of the regret that so many of us carry because we didn't know how to "think it through." --Harry C. Edwards

From Publishers Weekly
In 1966, the Lovin' Spoonful had a #2 hit with "Did You Ever Have to Make Up Your Mind?" Two years later, Raiffa answered that question for a generation of academics with his book Decision Analysis, whose argumentAthat decision-making skills can be learned and applied as a discipline of their ownAmade Raiffa deeply influential in management and social science. Raiffa (a former professor at Harvard Business School), his longtime associate Hammond (a professor of management and engineering at the University of Southern California) and Ralph Keeney (The Art and Science of Negotiation) here explain decision-analysis techniques and stratagems for the benefit of nonspecialists. They provide substantial, straightforward explanations of concepts (risk tolerance, sunk costs, desirability curves) that sound arcane but may help readers to buy the right car, choose a mutual fund, decide on a school, or plan a vacation. Unfortunately, the lingo of self-help often substitutes for the jargon of management consulting, as when Raiffa's famous five decision steps become the trendy acronym PrOACT. And the example problems can seem clich?d, two-dimensional or implausible, even when based on fact. Nevertheless, recommendations like "Remember that the value of an incremental change depends on what you start with" and "Make sure your subordinates reflect your organization's risk tolerance in their decisions" are, at the least, good reminders that the logic of decision making is often counterintuitive; at best, they are an important, useful set of insights.
Copyright 1998 Reed Business Information, Inc.

From Booklist
The three authors, all of whom come from academic backgrounds and specialize in decision science, argue that "making smart choices is a fundamental life skill" that can be taught. They provide a practical model for decision making and demonstrate that it can be applied in both personal and business situations. They show that the key is to break the decision into its individual elements, identify those that are most important, and analyze potential outcomes. The authors also stress that decisions should be made before they turn into problems. Their so-called PROACTive approach can be broken down mnemonically. Identify the PRoblem, specify the Objectives, create Alternatives, understand the Consequences, and weigh the Trade-offs. Following these steps, one must clarify uncertainty, assess risks, and be aware of what other choices a decision might create. From choosing a career to planning an employee party, the authors use a wide range of examples to demonstrate their approach. David Rouse

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Customer Reviews

Put this one at the top of your reading list
I had the pleasure of reading this book last year as assigned material in a graduate business course taught by Ralph Keeney. My degree is in information systems management and, frankly, I took Managerial Decision Analysis only because I needed 3 elective credits to graduate. In retrospect, however, the course was among the most beneficial to me and Smart Choices was certainly the most relevant book I read in graduate school. I say it was the most relevant because it demonstrates how to define problems and make decisions not simply as a business leader, but as an individual. The PROACT approach is a valuable tool for making formal decisions like "Which career path should I choose?" or "Which software package should I recommend to my client?" But the mentality that the approach engenders is pervasive. You will find yourself unwittingly applying elements of it to questions like "How should I spend time with my kids this weekend?" or "What is the best Valentine's Day gift for my wife?" The greatest benefit to me has been the piece of mind that comes with knowing that I don't just make better decisions -- I am now a better decision maker.

Excellent summary of a difficult subject
I have read many books on decision analysis - however, the 3 authors managed to condense the most relevant points in one book, without academic speak. The famous Kahnmann & Tversky's Heuristics and Biases are nicely summarised in the final chapter. The case studies are easy to relate to. Definitely a professional book written for the layman. No need for a PhD to understand this!

Best Simple Explanation of Good Decision-Making Processes
I am a corporate strategy consultant and an author of business books and articles. As a young man, I was taught all of the techniques described in this book in their most complex form. I loved the ideas, and have used them with great success for the last 30 years. Professor Raiffa is someone I admire greatly, as a result. I was delighted to find that this book addresses these complex tools in their simplest possible form, and applies the lessons to everyday living (especially the most important decisions that most people have to make). I immediately bought copies for everyone in my family as a way to help coach them in how to have more effective lives. You should do the same. I also suggest that you use the book as a model the next time that an important decision comes up that your whole family should participate in. This will not only help you develop better choices, but it will greatly improve the communications in your family about the decision. I strongly hope that the authors will write a similarly simple version for business people. I know a few hundred people to whom I would like to give such a book.