Unpacking the Benefits of Using Informal Models in Decision-Making
In today’s fast-paced world, making prompt and well-informed decisions is essential in any organization. A wrong or uninformed decision can lead a company astray, causing a ripple effect on its operations, employees, and clients. Many companies use formal models and decision-making techniques to guide their decisions, but as our understanding of the world becomes more complex, these models may prove insufficient.
This is where informal models come in. Informal models are a collection of insights, analogies, assertions, and metaphors that we use to comprehend the world and make decisions. Although informal models can appear haphazard and subjective, they have numerous benefits when used in decision-making. In this article, we will unpack some of these benefits.
Informal models provide a more holistic view
Formal models rely on data and mathematical equations to arrive at a decision. Although this method can produce accurate results, it leaves out the broader context surrounding the decision. Informal models, on the other hand, incorporate real-world observations, personal experiences, and analogies, providing a more comprehensive and holistic view of the issue being addressed. These models also enable us to dig deeper into the underlying assumptions and biases that influence our decision-making.
Informal models spark creativity and innovation
Formal models often rely on a linear and analytical approach to decision-making, which can be limiting in situations that require creativity and innovation. Informal models, however, provide a more open-ended and imaginative perspective on the problem at hand. They allow us to explore a wide range of possibilities, generating new ideas, and discovering innovative solutions.
Informal models encourage collaboration and conversation
Formal models often lead to siloed decision-making, where individuals focus on data and analysis without considering the insights or input of other team members. Informal models, on the other hand, encourage collaboration and conversation. By sharing observations and opinions, individuals can work collectively to build a richer and more nuanced understanding of the issue. This collaborative process also promotes a culture of openness and transparency, leading to better decision-making.
Informal models promote adaptation and flexibility
Formal models are rigid and often based on assumptions that may not hold up in the real world. In contrast, informal models are adaptable and flexible, allowing individuals to adjust their approach based on new insights or changes in the environment. The use of informal models encourages individuals to be more agile in their decision-making, leading to a more responsive and adaptive organization.
Conclusion
In conclusion, the use of informal models in decision-making offers many benefits for organizations. These models provide a more holistic view of the issue at hand, spark creativity and innovation, encourage collaboration and conversation, and promote adaptation and flexibility. Although informal models may appear subjective, they offer an effective way of navigating the complexities of the modern world. By incorporating these models into their decision-making processes, organizations can make more informed, effective and well-rounded decisions.
