Thursday, March 28, 2019

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

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