Categories
All Outsourcing

Decision-Making Processes and Cognitive Load

When stressed, decisions often become driven by emotion and the easiest solutions, rather than the best outcomes. This is why EOS emphasizes delegation and elevation, helping to reduce decision fatigue, which occurs when the mental drain of constant decision-making diminishes the brain’s capacity to make well-considered choices. Research shows that the human brain has a limited amount of decision-making capacity, and constantly switching attention between different tasks, especially micro-tasks, can lead to cognitive overload and reduced productivity. This phenomenon, known as “attention residue,” occurs when the brain struggles to shift focus completely from one task to another, leading to decreased efficiency and higher levels of stress​(McKinsey & Company)​​(Emerald)​.

A study by McKinsey found that many executives feel their decision-making processes are inefficient, with 68% of middle managers and 57% of C-level executives reporting that much of their decision-making time is ineffective. This inefficiency is compounded by frequent micro attention changes, which create cognitive interruptions and reduce overall productivity​ (McKinsey & Company)​. The concept of “Micro-Moments,” as discussed in marketing and cognitive studies, highlights how even brief shifts in attention can significantly impact decision quality and mental bandwidth​(EMB Blogs)​.

In the UK, similar principles apply in assessing decision-making capacity. The Mental Capacity Act (MCA) emphasizes the need for support in making decisions, considering whether everything possible has been done to help the person make the decision themselves. This includes reducing unnecessary decision-making to preserve mental capacity for more critical choices​ (Gov.uk)​. The MCA also highlights that making a decision under stress or with reduced capacity does not necessarily indicate a lack of overall decision-making ability, reinforcing the importance of proper support and context-specific capacity assessments​(Gov.uk)​.

At Process-Smart.biz, we understand the critical importance of preserving mental bandwidth for strategic and high-impact decisions. By offshoring routine and non-core tasks, we help our clients eliminate the thousands of low-value decisions that consume valuable cognitive resources. Our approach utilizes a mix of skilled global talent and advanced software to ensure these tasks are handled efficiently and effectively, without overburdening your in-house team.

This delegation of routine tasks not only reduces the decision fatigue experienced by your employees but also provides them with the mental space needed to focus on more significant and impactful decisions. By leveraging the strengths of people from around the world, Process-Smart.biz enables companies to maintain operational efficiency while enhancing decision-making quality. This increased bandwidth for critical thinking supports better strategic outcomes.

Categories
Job Aides

Adding Equipment, Sub, and Other Items to the Item Catalog

An equipment item is a specific type used when performing a service and needs to be added to your customer’s estimates. Typically, these items have a cost associated with them.
Having a set of predefined equipment items in your catalog provides significant benefits for accurately quoting and tracking equipment related costs.

Why is It Important?

You can track equipment items from categories like:
1. Rental Equipment – You can create catalog items for rental machinery like excavators, skid steers, etc. with different rental pricing structures built into your pricing.

2. Owned Assets – Build items for owned equipment with time-based billing rates to properly capture utilization costs on jobs.

3. Key benefits include accurate cost capturing for this item type, approved vendors to ensure contracted vendors are used for these services, and historical cost data, which allows a review of past costs for better planning and negotiation.

4. Additionally, a centralized subcontractor catalog helps you with vendor tracking that makes sure only approved or contracted subs are used, allowing you to budget with accuracy and base Sub budgets on real historical data.

catlog

catlog

Summary of the Process for Item Catalog

1. Click on the profile icon, then on the Administration button.

catlog2. Click on Estimating and Item Catalog.

catlog3. Click on New and then select the type you want to add. For this example, we are adding the Equipment.

catlog4. Enter the required mandatory details like Item Name, Category, Assigned Branch, Purchase Unit, and Unit Cost.

The name that will be given to the equipment of the same name will reflect on the Customer Proposal.

catlog5. The name given to the equipment will be reflected on the Customer Proposal.

catlog6. After filling in all the necessary details, click on save.

Equipment items are crucial for accurate quoting and cost tracking in service-based businesses. 

By creating a comprehensive catalog of predefined equipment, you can streamline your estimating process, ensure consistency, and make data-driven decisions. 

This approach not only improves accuracy but also helps in managing vendors, budgeting effectively, and analyzing historical costs for better future planning.

Download a PDF version of the job aide here.