STRATEGIC DECISION MAKING IS NO JOKE 

I wonder why people will think it is very easy for top management to take certain decisions or steps without first analysing it. The analysis can be for several reasons and most often it is for the common good of the organization and certain times to satisfy the interest of its shareholders.

These decisions are as seen in management science on decision making or problem-solving situations.

It can be as simple as MAKE OR BUY decisions or the LAUNCH OR NOT LAUNCH a product same as its closest competitor.

It is usually advised to handle events on case-by-case basis. With such method and proper studying, the likelihood of error or failure will not be catastrophic. Events are studied and research is carried out properly to understand the reasons behind the introduction of certain products.

Also, for any introduction, market research will have to be carried out and extensive report sent out with data backing the research carried out. It should be easily understood by all.

In strategic decision making, the following six steps will have to be considered.

1. Identify the problem
2. Search for alternatives
3. Weigh the alternatives
4. Make a choice
5. Implement the choice
6. Evaluate the results and, if necessary, start the process again.

Identify the problem

In other to solve a problem, one must first determine what the problem actually is. You may think you know, but you need to check it out. Sometimes, it is easy to focus on symptoms, not causes. You use a rational approach to determine what the problem is. The questions you might ask include:

• What have I (or others) observed?
• What was I (or others) doing at the time the problem occurred?
• Is this a problem in itself or a symptom of a deeper, underlying problem?
• What information do I need?
• What have we already tried to address this problem?

Search for alternatives

It may seem obvious what one has to do to address the problem. Occasionally, this is true, but most times, it is important to identify possible alternatives. This is where the creative side of problem solving really comes in.

A group might be set up to brainstorm on an excellent tool for identifying potential alternatives. Think of as many possibilities as possible. It is important to write down these ideas, even if they seem somewhat unclear or offbeat on first impression. Sometimes silly ideas can contain the germ of a superb solution. And too often, people move quickly into making a choice without really considering all the options. Spending more time searching for alternatives and weighing their consequences can really pay off.

Weigh the alternatives

Once a number of ideas have been generated or suggested, one will need to assess each of them to see how effective they might be in addressing the problem. We might take the below steps or factors when considering the alternatives:

• Impact on the organization
• Effect on public relations
• Impact on employees and organizational climate
• Cost
• Legality
• Ethics of actions
• Whether this course is permitted under collective agreements
• Whether this idea can be used to build on another idea.

Make a choice

Sometimes individuals and groups avoid making decisions. By not making a decision is in itself a decision. By postponing a decision, you may eliminate several options and alternatives. One loses control over the situation. In some cases, where a problem is not tackled immediately it might escalate. For example, if you do not handle customer complaints promptly, the customer is likely to become even more annoyed. One will have to work much harder to get a satisfactory solution in ensuring the customer leaves satified.

Implement the decision

Once a decision is reached, it must be implemented. With major decisions, this may involve detailed planning to ensure that all parts of the operation are informed of their part in the change. Employees may need additional training for the introduction of a new equipment or innovation. You may have to plan for a short-term closure while the necessary changes are being made. You will have to inform your customers of the closure.

Evaluate the outcome

Whenever one has implemented a decision, one need to evaluate the results. The outcomes may give valuable advice about the decision-making process, the appropriateness of the choice, and the implementation process itself. This information will be useful in improving the company’s response the next time a similar decision has to be made.

It is tough in taking decisions that affect the public and this is same as that which affects an individual. We should never assume that management is always slow in taking certain decisions. The above method is most often followed to arrive at the desired goal.

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