A decision making framework

Abstract

6-steps framework to facilitate decision-making. Project with a large business group where data from a survey, focus groups and unstructured interviews was gathered in order to identify the group’s needs in decision-making. The nature of the main problems and decisions are: 1) Generation of strategic initiatives. 2)Internal and external issues to identify SWOT. 3) Evaluation of strategic initiatives. Thus, the framework combines approaches of strategic management, Soft OR and decision analysis. 3 corporate decisions were successfully undertaken following the proposed guidelines: A prioritization of a portfolio of projects, selection of a technological supplier,disposal of a failed initiative. The resulting six final steps are: problem formulation and definition, strategic goal vs. decision objectives coherence, SWOT and stakeholder’s analysis, alternatives generation, alternatives evaluation and scenario analysis. The method is not necessarily linear and steps 1 through 4 add to define relevant criteria. Alternatives are ranked using the benefit to cost ratio and strength tested under scenario planning and risk, regret, and robustness criteria. Additional actions are being taken to ensure the transferability of the framework and its application across the entire organization.