Decision Making Techniques

The techniques in this topic range from the very simple to the rather sophisticated. Which technique you choose for a given decision will be influenced by the importance and complexity of the decision. As a preview to a discussion of techniques, then, let's consider a few preliminary ideas that will help identify some decision making levels.

  

Planning for Decision Making

While decision making without planning is fairly common, it is often not pretty. The terms used to describe it--crisis management, putting out fires, seat-of-the-pants governing--all reveal the inelegance and awkwardness of this way of life. Planning allows decisions to be made in a much more comfortable and intelligent way. Planning even makes decisions easier by providing guidelines and goals for the decision. We might even say that planning is a type of decision simplification technique (see the discussion of these techniques below).

Decision makers will find four major benefits to planning:

1. Planning allows the establishment of independent goals.

The vision which will shape the decisions is set apart from surrounding events. Decisions are not made only as reactions to external stimuli. "Management by firefighting" is replaced by a conscious and directed series of choices. Managers now steer the organisation, individuals now steer their lives, rather than being steered by external forces. Sometimes the difference between planning and not planning is described as "proactive" (taking control of the situation) versus "reactive" (responding to stimuli).

2. Planning provides a standard of measurement.

A plan provides something to measure against, so that you can discover whether or not you are achieving or heading toward your goals. As the proverb says, If you don't know where you're going, it doesn't matter which way you go.

3. Planning converts values to action.

When you are faced with a decision, you can consult your plan and determine which decision will help advance your plan best. Decisions made under the guidance of planning can work together in a coherent way to advance company or individual goals.

Planning is useful in emergency situations, too. When a crisis arises, a little thought about the overall plan will help determine which decision to make that will not only help resolve the crisis but will also help advance the overall plan. Without a plan, crises are dealt with haphazardly and decisions are made which may ultimately be in conflict with each other.

4. Planning allows limited resources to be committed in an orderly way.

Budgets, time, effort, manpower--all are limited. Their best use can be made when a plan governs their use.

A simple example would be planning to buy a house or a car. Rather than having to decide between buying the item right now with all cash or never having it, you can plan to buy it over several years by making payments. Or, you might combine this plan with the plan to buy a smaller house and add rooms later as they could be afforded. By planning you can thus accomplish things that might otherwise look impossible.