Decision making

When do we need to make a decision?

Solution 3 Problem Solutio n 2 Solutio n 1 Solution 4 Solution 5 Solution 6

Option 3 Need Option 2 Option 1 Option 4 Option 5 Option 6

Selected Decision making tools Selecting the most important change to make PARETO ANALYSIS Evaluating the relative importance of different options PAIRED COMPARESON ANALYSIS Making a selection when many factors must be taken into account GRID ANALYSIS

PARETO ANALYSIS Problem Cause 3 Cause 2 Cause 1 Cause 4 Cause 5 answering phones staff under pressure Engineers don’t know what they are doing Problem can be solved over phone Lack of training few staff lack of organization

PAIRED COMPARESON ANALYSIS When there are no objective data to rely on Makes it easy to choose the most important issue to solve Helps to set priorities when there are conflicting demands on resources It is Ideal to compare different options ORANGES with APPLES! Overseas markets Home Market Customer service Quality

0 = No difference 1= little difference 2= medium difference 3= major difference A = 3 (37.5%)B = 1 (12.5%) C = 4 (50%)D = 0 Overseas markets (A) Home Market (B) Customer service (C) Quality (D) Overseas markets (A) Home Market (B) Customer service (C) Quality (D) BLOCKED A, 2C, 1 A, 1 B, 1 C, 2

GRID ANALYSIS When there is number of good alternatives to choose from Many different factors to take into account A great technique to use in any important decision when there is no clear option Options: -4x4 -Comfortable family car -Station wagon car -Convertible sport car Criteria: -Cost -Ability to carry tents -Ability to store equipments safely -Comfortable over long distance -Fun ;-) -Nice look and build quality to car

Scale 0 = poor5 = very good Factors Weights Sports Car 4x4 Family Car Station wagon CostTentStorageComfortFunLookTotal

Scale for factor 0 = unimportant …………………5 = very important Factors Weights Sports Car 4x4 Family Car Station wagon CostTentStorageComfortFunLookTotal

Other Decision making tools: Weighing Pros and Cons of a decision PMI Analyzing the pressure for and against change FORCE FIELD ANALYSIS Looking at decision from all points of views SIX THINKING HATS Understanding options better by brainstorming questions STARBURSTING Making better group decision STEPLADDER TECHNIQUE Seeing whether a change is worth making COST/BENEFIT ANALYSIS

Decision making