BUSINESS DECISION-MAKING

I recall my first class on Analysis of Business Problem in my EMBA journey and the deep dive on ‘thinking in an orderly fashion’. The course is actually aimed at presenting the opportunity to acquire skills required to analyse business problems and proffer decision that will have a positive impact on the business’s profitability and overall success.

Obviously, the decisions we make consciously and unconsciously, with good or bad consequences shape our lives. They represent the fundamental tool we use in facing the challenges, opportunities, and uncertainties of life. We make decisions daily and even momentarily. I have been faced with some questions seeking answers – What job offer should I take? What investment should I invest my savings? Which school to enrol my kids. What can I contribute to my community. Should I go back to school for an MBA program? When should I retire? These questions presented the definition of my life and the answers to them determined to a large extend my place in society and my career at the time. Making decision is indeed a fundamental life skill. However, some decisions are obviously ‘no-brainers’, as the decisions are mostly glaring and do not require much thinking – imagine your bank account is low, but you have a vacation coming up and you intend to get away to someplace to relax with the family – of course the decision will be negative; or you are asked to step in for your boss for two weeks as his relief while he attends a professional course – of course, this does not require any thinking.

The Analysis of Business Problem course has helped me to analyse real-life case studies that require problem analysis and decision making. The case I have really enjoyed is the ‘The Future of BioPasteur’. This is a case of a pharmaceutical company BiosPasteur founded by Jeff Thompson, Arnold Hand (MIT Ph.D classmates) and Prof Amy Waitz (MIT Chemistry Professor), trying to take a decision to introduce a new drug DIASTOP to the marketplace following the concerns raised by another researcher (Prof. Rivers) at an Annual Proceedings of Pharmaceutics on the possibility that the drug may be dangerous with side effects to patients. These concerns were also validated to an extent by BioPasteur’s head of laboratory.

The case was analysed using the PrOACT model – this model identifies the Problem, the Objectives, the alternatives, the consequences and trade-offs. The uncertainty, risk tolerance and linked decision were also considered in the analysis.

The process to first define the problem and not the symptoms, also ensured proper framing of the problem and avoided framing bias. The case was analysed by:

1. Understanding the problem situation
2. Define the problem.
3. State the objectives.
4. State the Alternatives.
5. Develop Criteria
6. Analyse the alternatives against the criteria.
7. Take a decision and develop an action plan.

This course has indeed exposed that problem solving and decision-making are fundamental about how we think. Our subjective and objective disposition blend analytical with intuitive thinking. This helps to minimise bias that often plague our decision-making. Most times, we are more likely tempted to take the mental shortcut, often unconsciously, rather than carefully evaluate the details of the circumstances…I hope to evaluate more cases and fully develop my decision-making skills in my MBA program…#EMBA28