Strategizing the Future Making Good Management Decisions

Decision Making Defined Making a choice between two or more alternatives Problem-solving decisions… made to solve existing or anticipated problems Opportunistic decisions… made to advance accomplishment of a program or project’s desired results

Involving Others in Decision Making Autocratic (I) – Managers make decisions alone Autocratic (II) – Managers obtain information from others but make decisions alone Consultative (I) – Managers exchange information with relevant participants individually but makes the final decision Consultative (II) – Managers exchange information with relevant participants as a group but makes the final decision Group (II) – Managers exchange information with relevant participants as a group and work with the group to reach a consensus decision

Defining the problem or opportunity stimulating the need for a decision Develop relevant alternatives Assess the alternatives Choose an alternative Implement the decision Evaluate the decision and make necessary follow-up decisions Becoming aware that a decision is needed Feedback The Decision- Making Process

Using Data to Inform Decision-Making Data for decision-making presentation

Assessing Alternatives and Evaluating Decisions Based on Cost Cost-benefit analysis – Define costs – Assign a value to those costs – Define benefits – Assign a value to those benefits Cost-benefit ratio (Z) = Compare ratio of current to ratio of alternative value of benefits value of costs

Cost-Benefit Activity (Hypothetical) Project: Work with medical personnel and a nursing case management team to follow best practices for the use of Proton Pump Inhibitors (PPI) in the treatment of Gastric Reflux (GERD)

Background Currently 10% of the 15,000 employee workforce are being treated with PPIs Current practice (based on claims analysis): – Visit to doctor results in 12 month Rx for PPI – Patient fills Rx for all 12 months – Approximate cost for a 1 month supply (30 pills) of 10 mg pills is $200 Evidence-based practice: – 14 days of combined PPI (can use over the counter) and antibiotic ($180 for 2 weeks) – 8-10 weeks of additional PPI treatment (again, can be OTC) – Note… 10 mg OTC costs $.80/day

Compare… What is the cost of the current treatment for one year? What is the cost of the evidence-based treatment plan? Data suggests that if the evidence-based 12-week treatment plan isn’t effective in treating GERD, then treatment other than use of a PPI should be considered; however, most often the treatment is successful and additional treatment is not needed. What would be the cost-benefit ratio for the current treatment as compared to the evidence-based treatment if the value of the benefit remained constant? What would be the cost-savings if all 10% of your population were successfully switched?

Websites to View CDC: Healthy Worksite Initiative Marketing Professionals and Professors Wellness Councils of America

Designing a Website… You have been asked to design a website for the local wellness council. A site that would lead “Wellness Leaders” in your community to key resources that can help them develop workplace wellness programs. What would your ideal website contain? Why?