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A decisional balance sheet is a tabular / grid based method for depicting the pros and cons of different options which helps to decide what to do in a particular situation. Sometimes when we are faced with an important decision, we spend a lot of time looking for a solution hoping to avoid making the wrong choice. One of the simplest ways to decide what we shall do in a particular situation is Decision Balance Sheet. It is a quite simple however a very powerful and effective decision-making method that enables the team to make more confident and balanced decisions. It is said that decisional balance sheet was first used by Benjamin Franklin. In 1772, Franklin described his own use of the method, often called the Ben Franklin method. It includes making a list of pros and cons about a decision, estimating the importance of each one, eliminating items from the pros and cons lists of roughly equal importance until one column is dominant. In 1959, Irving Janis and Leon Mann coined the phrase decisional balance sheet and used the concept as a way of looking at decision-making.This approach / technique is quite often used in working with ambivalence in people who are engaged in behaviors that are harmful to their health (for example, problematic substance use etc.), and in certain circumstances in motivational interviewing too. Another corollary of this tool is PMI which stands for Plus, Minus and Interesting. An Interesting column is used when the elements of the idea are not resulting into positive or negative effect. It can be used to record what you consider interesting and the future implications of the idea. E.g. Pursuing a new hobby say painting where there are no as such plus and minus but you are taking it forward as it interests you. How Decisional Balance Sheet Looks ? A decision balance sheet is simply a table of two columns called as Pros and Cons. This table is used to record all the pros and cons for the given idea or the proposal. You can also use a scoring system by giving numerical weights to the different pros and cons. The result will help you to decide whether to go ahead with the decision or not to go with it. (Images shown in examples below) How to Make and Use the Decision Balance Sheet ? Steps : i) Clearly write down the situation or idea at the top of a flip chart or whiteboard. ii) Draw a table of two columns, name one “Pros” and the other as “Cons”. iii) Record all possible benefits in the pros column and all possible negative effects in the cons column. iv) Give numerical weights to the pros and cons by assigning a score from one to five. Be objective while scoring. v) Sum up the scores in each column and then subtract the total cons from the total pros. vi) Consider the overall score to decide whether to go ahead with the decision or not. vii) Take time to identify other factors that you may have missed. Remember to use common sense too when you suspect that the reached result is not feasible. Some of the Real Life Examples and Applications of Decisional Balance Sheet : DECISIONAL BALANCE SHEET – GO FOR PREVENTIVE MAINTENANCE OR NOT PROS CONS CHANGE (Go for it) i) It will reduce the unknown / unscheduled failures (+5) ii) Will reduce the unplanned downtime (+4) iii) Will help in avoiding the accidents and improve workers safety (+5) iv) Will improve company’s brand image (+4) i) There will be cost incurred on it (+3) ii) Additional Efforts needs to be put in making the schedule (+2) iii) There is downtime involved of machines as per schedule (+2) NO CHANGE (Don’t Go for it) i) Cost Savings due to no downtime for Preventive maintenance ii) Increased availability of machines iii) Savings of Resources (Man Power) involved in making the schedule iv) No impact on the Production i) There may be frequent failures and downtimes ii) Unexpected downtimes / failures may lead to high revenue loss or costs iii) Stress / Pressure to resolve the issue immediately iv) Safety concerns for workers and Brand image of company will hamper DECISIONAL BALANCE SHEET – CHANGE JOB AFTER CERTAIN TIME OR STAY AT SAME COMPANY PROS CONS CHANGE i) Fast Growth in Career / Position (+5) ii) Higher Salary Increase (+4) iii) New Skills Learning (+5) iv) More Connects in Industry (+4) v) Exposure to different Cultures (+3) i) Instability / New Comer's Risk in New Organisation (+5) ii) Uncertainty in New Environment (+4) iii) Establish your connects from scratch (+3) iv) Work Harder to settle and for Growth (+2) DON’T CHANGE i) Job Security ii) Less Efforts to Survive iii) Comfort Level iv) Good Knowledge about existing company (People / Culture / Connects etc.) i) Slow Growth Rate ii) Less Increments in Salary iii) Stagnancy in Skill / Career iv) No knowledge about outside world / technology v) Less Personal Development due to working in same culture / environment DECISIONAL BALANCE SHEET – DO NEW CERTIFICATIONS OR WORK AS USUAL PROS CONS CHANGE (DO CERTIFICATIONS) i) New Skills Learning (+5) ii) Fast Career Growth (+5) iii) Sense of Achievement (+5) iv) Stay Relevant & Avoid Obsolescence Risk (+4) v) More Connects outside (+4) i) Extra Efforts on certifications may impact routine work (+2) ii) High Certifications Cost (+2) iii) Impacts personal time / space due to weekend efforts (+3) Summary : If we look at the above examples, it is evident that scores in favor of Preventive Maintenance, Change Job after certain time period and Do Certifications are high (Basis Personal Assumptions and scoring) and hence decisions may be taken in favor of these events.

Decision Balance Sheet:- Benjamin Franklin was the first person who introduce decision balance Sheet. Franklin described this process to Joseph Priestley In a 1772 letter ,which is now often called the Ben Franklin method. Sometimes when we are faced with an important decision, we spend a lot of time looking for a solution hoping to avoid making the wrong choice. One of the popular tool to decide what to do is using the Decision Balance Sheet. This method enables the team to make more confident and balanced decisions. A table is used to record and represents the advantages and disadvantages of an idea or situation for the purpose of reaching to a decision quickly. This situation might be a problem that needs to be solved or a condition that needs to be changed or evaluation of solutions/ideas proposed for implementation. A decision balance sheet is basically a table of two columns labeled as Pros and Cons. This table is used to capture all the pros and cons for the proposed/suggested idea or situation. A scoring system can be used by giving numerical weights to the different pros and cons which will help to take decision easily. The result will help team to decide whether to go ahead with the decision or not. PMI is one of the version of this tool, which stands for Plus, Minus and Interesting. one Interesting column is also used when the elements of the proposed solution/idea are not particularly of positive or negative effect. It can also be used to record what team consider interesting and the future implications of the idea. Decision balance sheet can be used in a four-cell matrix consisting of the pros and cons in the short and long term. This is very useful when the decision is of strategic nature. Method to Use the Decision Balance Sheet:- Below steps explain the use of decision balance sheet:  Clearly write down the solution / idea/decision at the top of a flip chart or whiteboard.  Make a table of two columns, Name/Heading one “Pros” and the other “Cons”.  Write Down all possible benefits in the pros column and all possible negative effects in the cons column.  Assign numerical weights to the pros and cons by giving a score from one to five. Be objective while scoring.  Sum the scores in each column then subtract the total cons from the total pros.  Use the overall score to decide whether to go ahead with the decision or not.  Team needs to identify other factors that they may have missed. Use your common sense when team suspect that the reached result is not appropriate. Example: As an example, let’s say that one cross functional team wants to decide whether to go for a new website for the organization or keep the existing one. The final score suggests that team should go for a new website. Another Example:- Decision balance sheet may also be used in personal decision-making. let's take one example of a personal decision balance sheet where the challenge is to decide whether to accept a new job offer in another city. Let's take one more Example of decisional balance sheet for someone experiencing alcohol problems Plusses Minuses Continue drinking as I am It's what my friends do It makes me less anxious It's fun being drunk I like the taste I get into fights Health problems Divorce threat Debts I can't remember things the next day Cut down I can still meet my friends It will help my health Will my partner believe me? Can I stick to it? Stop drinking I won't get into fights any more It will please my partner It will save money Good for my health I might have to avoid my friends How will I cope with anxiety? What will I do for fun? Any evaluation may change and often the cells are inter-connected. For example, looking at the table above, if something were to happen in the individual's marital life (an argument or the partner leaves or becomes pregnant or has an accident), the event can either increase or decrease how much weight the person gives to the elements in the balance sheet that refer to the relationship.

Decisional Balance Sheet is one of the simple continuous improvement tools widely used for taking both personal and professional decisions . This is probably carrying the DNA of SWOT analysis approach but here the elements are much more fundamental and prima-facie visible than using analytics to arrive at for assessment . It follows a simple matrix which can look like quadrants with both Pros and Cons listed on ta tabular format and weightage is given on for or against to arrive at the net scope and which ever dominates in pros and cons would be the decision which one can take . If we take a try primitive example of a personal issue on which one has to take a decision . Whether I should move my home near workplace ? The below example would give the pros and cons which carries merits and disadvantages of various elements including , financial , time , health , social angles etc . This can be extended to a PMI which is known as the Plus -Minus-Interesting as well . We can also introduce short term and long term benefits of few decision and give weightage for few elements which can be finally calculated for arriving at the net effect . In a professional environment when we have to take a decision in an organisation with collective in-put from many the following example can be quoted Whether to implement ERP solutions in the organisation or not ? Decision matrix is a evolved and more sophisticated form of Decisional Balance Sheet Balanced score card is again the top end of this concept which is a hybrid between a Financial balance sheet and Elements causing the effects on the financials . Even in Psychological domain this concept is used in ABC model and also in DBT - Dialectical Behaviour Therapy .