How do you calculate the net value of your decisions?

- You should consider the emotional part, which is intangible but carries weight in some situations/outcome , as a factor. - Always an expected value rather than actual value, things change quickly and unexpected dynamic actions and reactions, minus the initial cost of a particular choice.

Whether to calculate net value is itself a decision point and need to be evaluated. In dynamic fast paced environments, there may not be enough time to determine net value as the window for making decisions is quite narrow. In such circumstances, it helps to bring a group of experts together in a quick conversation and come out with a broad consensus on the decision.

It's also important to include a relevance factor against each of the benefits or costs associated with each option. This will help you assess if the quantified benefits really work in your favour and/or the costs associated can be a deal breaker irrespective of their value. So while a benefit might be value heavy, it might not be important to you. So for example, if you have to decide between two job offers and one might be offering four times your existing insurance coverage, it might not be very relevant if you have a personal insurance policy which offers the same benefit. Similarly, what might appear to be low cost, might not be very relevant to you.

- by multiplying each of the possible outcomes by the probability with which each outcome occurs, and then summing all of these values. The outcome of the possible decision should be considered.

Another way of looking at this is in terms of opportunity cost. Simply put, if there is another activity where your expected payoff would be higher, you're better of delegating your current activity. Time is your key currency. To get net postive values, your time should be deployed in the highest productive use. For instance, a CEO focusing on sales and hiring for operations will result in net postive outcomes.

-Emotional factors, in some situations has more impact/ outcome on the decision. - The net value is a great tool to start making a decision tree which is a great tool.

-Totally agree, can be used all the time even in simple decision making situation . - Added value over time is one of the attributes to consider

In my opinion using a tool such as decision tree helps To create a flowchart, first identify the main idea or question, place it at the top, and determine potential outcomes and decisions. Add potential decisions to the tree, writing down their outcomes and expanding until they reach end points. Calculate risk and reward using quantitative data, such as monetary data. Evaluate outcomes by determining the best decision based on the level of risk, budget, timeline, and other factors will reach to a net value decision.