Final answer:
The outside view in decision-making refers to utilizing historical data and similar cases to inform future decisions. It includes gathering a wide range of information and seeking expert knowledge.
Step-by-step explanation:
The outside view in the context of improving decision-making refers to the practice of looking at historical data and cases that are similar to the current decision context in order to estimate outcomes. It involves using empirical evidence from outside one's own situation or experience. This is contrary to the 'inside view,' where predictions and decisions are based solely on the specifics of the current situation, often leading to overconfidence and underestimation of risks. To improve decision-making, taking the outside view would typically include:
- Gathering information from a broad range of sources, including customers and other stakeholders.
- Finding expert information, whether through direct consultation or from books and other resources.
- Conducting a root cause analysis to identify the true nature of the problem at hand.
Experts often rely on their sense of the answer before detailed analysis. This intuition helps to spot potential mistakes and encourages a more thorough examination. Furthermore, when making personal decisions such as career choices, it is vital to have self-awareness of one's characteristics, external factors, and available resources that influence informed decision-making.