Structured decision making is expedient in all aspect of lives. All Faculties teaching me this semester related their courses to decision making; that was not surprising. For best business decision, Corporate Financial Accounting is necessary, Analysis of Business Problems is a must. As a manager, you must communicate your decisions (Management Communication) and you can’t make such without Data Analytics. With no iota of doubt, it is obvious that decision making is the primary variable in my courses and I must pay more than the usual attention.
“Decision making is a process fraught with power plays, politics,David A. Garvin
personal nuances, and institutional history. Leaders who recognize this
make far better decisions than those who persevere in the fantasy that
decisions are events they alone control.”
What is decision making?
“Decision-making involves the selection of a course of action from among two or more possible alternatives or choices in order to arrive at a solution for a given problem”.Trewatha & Newport
Generally, if we have a problem, we must make a choice from several options. The problem could be an opportunity or a deficiency.
STRUCTURED APPROACH TO DECISION MAKING:
As humans, we essentially have two mental operations working in our mind; therefore, our ability to make optimal verdict on alternatives depends on how we balance these mental operations. In order to assist us, there is a structured or systematic approach:
- This approach provides a framework for gathering and managing information. This is especially needed in handling tough situations.
- Structured approach acknowledges our subjective and objective thinking and merge them with intuitive thinking.
- It helps to minimize cognitive biases which often disrupt our final choices.
Evidently, If we use structured approach in our decision-making processes, we will make better choices.
STEPS OF STRUCTURED DECISION-MAKING
- Understand the situation. As a matter of fact, ensure you have all relevant information to understand the business dynamics
- Define the problem you want to solve.
- Define the objective(s) in other words, you need to have a clear goal you wish to achieve.
- Identify the alternatives or options to achieve the objective you already set.
- Identify the criteria or considerations that you need to attain the established objective.
- Analyze the alternatives against criteria. That is, examine quantitative and qualitative issues, establish the trade-offs, opportunity, cost, or consequences.
- Make a choice; in effect, decide.
- Develop an action plan. You need to emphatically ask yourself: “how are am I going to implement the choice made? are there risks associated with my choice? lastly, is there a means of minimizing these risks?”
- Re-appraise your choice but ensure you don’t hang up on whether it is right or wrong
SKILLS FOR STRUTURED DECISION MAKING
Before now, i didn’t know decision making have required skills. ABP session taught me there is. Obviously, the above processes doesn’t happen automatically, skills have to be acquired such as critical thinking, active listening and embracing diversity of thoughts.
In conclusion, I know all four courses are necessary for my decision making processes as a manager, notwithstanding my conviction became crystal clear only after the second session of ABP. I have seen that I must follow the structured system for best result.