My decision to start an Executives Master In Business Administration (EMBA) in Lagos Business School of Pan Atlantic University, Nigeria has started paying off. As a professional Accountant in Private practice, my day to day roles requires a lot of professional and technical interaction with clients across industries. One key component of the IFAC Code of Ethics is Professional competence and due care, which requires that ‘Members have a continuing duty to maintain professional knowledge and skill at a level required to ensure that a client or employer receives competent professional service based on current developments in practice, legislation and techniques. And that Members should act diligently and in accordance with applicable technical and professional standards when providing professional services.’
Hence, my quest for knowledge and due care for my clients has made me embark on this short journey for personal development.
The classes have truly been exciting, enlightening, and informative. Of the four major courses programmed for this semester, Analyses of Business Problem has been most interesting to me.
This course has given me a fresh perspective and a more methodical approach at assisting clients in diagnosing and analyzing various business challenges and decision-making process.
In analysing business problems, we were introduced to two frameworks in framing biases and helping in proper diagnostic of business cases.
The objectives of these frameworks are:
- To assist in gathering and managing information especially in complex situations.
- To acknowledges both subjective and objective thinking and blends analytical with intuitive thinking.
- Helps to minimize cognitive biases that often plague our decisions.
The first methodology processes are as follows:
- Identify the problem-by understanding the context
- Define the problem not the symptoms-by proper diagnostic review
- Define the objective- Specify your objectives and let it guide you
- Determine the criteria
- Generate alternatives to meet the objectives identified
- Analyse each alternative using the developed criteria, then assessing criteria based on priority and weight
- Make a decision-the quality of decision is heavily depend on information available to us.
The second methodology uses an acronym called PROACT model as shown below
- P-Problem
- O-Objective
- A-Alternative
- C-Consequences
- Trade-offs
- Uncertainty
- Risk Tolerance
- Linked decision
The applicability was demonstrated by introducing real life case studies and scenarios, the lecturer did justice to this course the way he moderate the class and allow ideas and perspectives to flow freely from top executives from various background and discipline. He opined that, critical thinking is necessary in decision making process because when emotion goes up, logic comes down, vice versa.
By learning to make better decisions:
- We must make more rational, optimal, implementable decisions rather than emotional decisions or decisions based on instincts, wishful thinking, assumptions and our personal biases alone
- Use a systematic process or frameworks as discussed above for solving problems / making decisions
- Hone our critical and analytical thinking skills
In conclusion, for effective decision-making process, it is expedient that we engages proper framing of biases by ensuring a more rational and implementable decision is reached, devoid of any emotional undertone, by doing the following:
- Focus on important issue
- Logic and consistency
- Subjectivity and objectivity blended with analysis and intuition
- Avoid information overload & analysis paralysis
- Requires relevant information
- Reliable, easy, and flexible
Winning the Trophy