Strategic Decision-Making Part 2

The outcome of the process should be a solution that allows the organization to succeed.

There are six criteria for an effective decision-making process:

• The focus is on what is important
• The process is logical and consistent
• It accounts for objective and subjective factors and uses both analytical and intuitive thinking
• It requires only as much information as is necessary to make the decision
• It encourages and guides information-gathering
• It is straightforward, flexible, and user-friendly

There are 8 elements involved in making a smart decision:

• Identifying the problem
• Identifying the objectives
• Identifying the alternatives
• Identifying the consequences
• Identifying the tradeoffs
• Working in the context of uncertainty
• Working in the context of risk tolerance
• Working in the context of linked decisions
• The Meta-Decision:
• understanding the problem
• identifying the basic nature of the decision to be made
• deciding which process will be used

There are 4 basic components that form the overall decision-making process: 

• Framing
• Realizing and understanding the boundaries that are set on the problem
• Defining reference points to gauge success or failure of the decision
• Defining the metrics for the process
• Gathering intelligence
• Coming to conclusions
• Learning from feedback 

Until next time...
 




Sheryl Tuchman, SPHR, SHRM-SCP
http://tools2succeed.com/