Numerix Decision Making Services
The Common Structure of All Decisions
Take the Decision Making Test
The IDEA Methodology
Renovate or Relocate – A small case study?
Decision Making sites of interest



The 'IDEA' Methodology

We have encapsulated our process for collective decision-making into five easy stages, easily remembered by the "IDEAS" nmemonic.

Issues. All business decisions begin with an issue or problem which needs resolution. The process calls for creative and collaborative thinking about the problem itself as well as the surrounding context. We need to formalise the thinking by documenting the problem, the objectives of any action taken, and a set of viable alternative decision options. In terms of the decision environment, we need to consider aspects such as risk, scope, culture, business rules, customs, policy and politics among many others.
(more on generating ideas)


D
ecision Construction requires the main decision criteria to be decomposed into sub-criteria. This will allow the options to be considered in a more refined manner, providing greater subtlety and clarity to the decisin team. We then assemble these into a decision hierarchy, providng a formal structure with which to analyse the decision.
(more on Decision Construction)

Evaluation concerns not only rating the options relative to each of the lowest level criteria in the hierarchy, but also rating the importance of the criteria against each other Various decision methods and instruments are available (questionnaires, debate, focus groups) to help with this phase. Initially however, we make use of snap judgements and then check to see what benefit deeper and more detailed analyses offer. We then analyse option preferences against all the criteria and thereby against the decision itself, yielding the formal recommendation. This is a simple calculation. Also required is the capture of data and information so that it can be transformed into knowledge and practical wisdom. This involves a careful documentation of the process used and an explanation of preferences expressed. It also involves the use of an electronic database which can guide the resolution of future issues and decisions.
(more on Evaluation)


Action implies that the preferred option must be implemented. This usually is achieved by converting the desired action into a formal project, assisted by the usual process and tools that characterise that discipline. Management accountability is transferred to the appointed project manager who reports to the project sponsor, a representative of the decision team.
(more on Action)

 


Numerix Pty. Ltd. ABN 83 003 504 970 Telephone: 61 2 - 9279 0900 Fax: 61 2 - 9279 4141 email info@numerix.com.au