1. Decision Making
Directing team

2. Content What is decision making? Steps to rational decision making
Limitation
Using groups to improve decision making
Decisionometer

3. What is decision making?

4. What did I do to come up with my recommendation in Nike case?

5. Steps to rational decision making
Define problem
Problem: A gap between a desired state and an existing state
To solve problem:
Know there is one before you can start solving
Be motivated to solve
You must have the skills to fix the problem

6. I lost my phone, how can I have a girlfriend without a mobile phone?
I have to buy a
new one !!!
For example, you lost your phone and want to buy a new one. First, you have to define your problem: You lost your phone and want to have a GF.
Then you are motivated to solve: Buyinig a new one

7. 2. Identify Decision Criteria Decision criteria:
Standards to guide judgements and decisions
The more criteria a solution meets, the better a solution will be

8. Which criteria are more important?
3. Weigh the Criteria:
Which criteria are more important?
Absolute comparisons
A process in which each decision criterion is compared to a standard or ranked on its own merits
Relative comparisons
Each criterion is compared directly with every other criterion

9. Absolute comparison Unimportant 1 Somewhat important 2 Very important
Unimportant 1
Somewhat important 2
Very important
Criteria 1 2
Price X
Brand
Camera
Design
Water Proof
3.5 mm jack

10. Relative comparisons Price Brand Camera Design Waterproof 3,5mm jack
Price
Brand
Camera
Design
Waterproof
3,5mm jack +1 -1
Total weight -2 3 -5

11. As much as possible 4. Generate Alternative Courses of Action
Identify action that could solve problems
As much as possible

12. 4. Generate Alternative Courses of Action
Apple?
OPPO?
Samsung?
Tablet?
No phone at all?

13. 5. Evaluate Each Alternatives Compute the Optimal Decision

14. Limits to rational decision making
I’m not round

15. Using Group to improve decision making
GROUP THINK
Pitfalls
Limited solution and restricted discussions
Time
Strong willed member
Structured conflict
C type: Devil’s Advocacy,
Dialectical Inquiry
A type
Nominal Group Technique
Delphi Technique
Electronic Brainstorming
Solutions

16. Stating Alternatives and Consequences
Decisionometer
Decisionometer is a tool for tracking the level and quality of conversations and decision making 1 2 3 4 5 6
Chatting
Observing a situation
Applying concepts
Setting Goals
Stating Alternatives and Consequences
Choosing
Planning action
Should take the example : Chat to avoid decision
- To identify where a group is in the decision making process, to help a group make decisions effectively, not to get lost in process

17. Summary - Steps to decision making Define problem
Identify decision criteria
Weigh the criteria
Generate alternative course of action
Evaluate each alternative
Compute the Optimal Decision
- Decisionometer