Effective decisions demand an effective decisions-making process. An effective decision-making process reduces the possibility of wrong choices or failures. Generally, an individual starts from a decision point on a decision-puzzle, at this point, he gathers related information, considers threats and opportunities linked with actions, estimates/guesstimates likely reactions to minimize possible risks and uncertainties, lastly, invokes courage to make final decision and lives, firmly, with these decisions until success or some rational outcome is not actualized.
The process is frequently adopted during multiple socio-economic interactions. In business life, the development of niche market, creation of unique sale point, institutional reengineering, and stable adoption of industry standards or benchmarking are few examples of effective decision making. In social life, making a new friendship, spouse selection for marriage, school choice for siblings are few examples of social decisions.