Decision MakingDecision Making

Should You Ask?Should You Ask?

Sir, why is my coursework marks so low? I deserve higher

marks. Hehehe!

Which Mobile Phone should I buy? Which Mobile Phone should I buy?

What are the things you consider before

making a decision?

What should I wear for class (or work) today?What should I wear for class (or work) today?

What are the things you consider before

making a decision?

Decision Making:Decision Making:

3. Decision Making Process

4. Decision MakingTools

1. What is Decision Making? 2. Barriers to Good

Decision Making

"No sensible decision can be made any longer without taking into account not

only the world as it is, but the world as it will be. . ."

-  Isaac Asimov

1.What is Decision Making?1.What is Decision Making?

Decision makingDecision making is the cognitive process leading to the selection of a course of action among alternatives. Every decision making process produces a final final choicechoice. It can be an actionaction or an opinionopinion. It begins when we need to do something but we do not know what. Therefore, decision making is a reasoning processreasoning process which can be rational or irrational, and can be based on explicit assumptions or tacit assumptions. Examples: Shopping, deciding what to eat, what to wear, when to sleep, etc..

“Successful leaders have the courage to take action while others hesitate.”

- John C. Maxwell

2. Barriers to Good Decision 2. Barriers to Good Decision MakingMaking

Hasty Hasty - Making quick decisions without having much thought.

Narrow Narrow - Decision making is based on very limited information.

Scattered Scattered - Our thoughts in making decisions are disconnected or disorganized.

Fuzzy Fuzzy - Sometimes, the lack of clarity on important aspects of a decision cause us to overlook certain important considerations.

“ Making good decisions is a crucial skill at every level. ”

- Peter Drucker

3. Decision Making Process3. Decision Making ProcessStepsSteps TipsTips

1.1. Define the decision clearly.Define the decision clearly. A lot of decision making goes wrong at the starting point. the more specific your definition of the decision is to made, the clearer will be your analysis and the likelihood of success.

2.2. Consider all the possible Consider all the possible choices.choices.

Successful decision makers explore all of the possible choices of the situation. In fact many of the less obvious choices turn out to be the most effective ones.

3.3. Gather all relevant information Gather all relevant information and evaluate all the pros and and evaluate all the pros and cons of each possible choice.cons of each possible choice.

In many cases, we may lack sufficient information to make an informed decision. Analyze the advantages and disadvantages of each choice

4.4. Select the choice that seems to Select the choice that seems to best meet the needs of the best meet the needs of the situation.situation.

Synthesize all what you learned in previous steps and make a conclusion that you believe to be your “best” choice.

5.5. Implement a plan of action and Implement a plan of action and then monitor the results, making then monitor the results, making necessary adjustments.necessary adjustments.

Once you have selected your best choice, you need to develop and implement a specific and concrete plan of action. As you begin taking the steps in your plan, you will discover that adjustments need to be made.

“Because I'm thinking in a broader way, I feel like I am able to make better

decisions.”- Takafumi Horie

4. Decision Making Tools4. Decision Making Tools

Tools to facilitate better decisions:Tools to facilitate better decisions:

CoRT CoRT

SWOT ANALYSIS SWOT ANALYSIS

SIX THINKING HATSSIX THINKING HATSDECISION MATRIXFORCE FIELD ANALYSISISHIKAWA DIAGRAMMIND MAPPINGSOCRATIC QUESTIONING

More More MyCoted + + Mind Tools + + Creativity Web

SStrengthstrengths WWeaknesseseaknesses

OOpportunitiespportunities TThreatshreats

4.1 SWOT Analysis4.1 SWOT Analysis

SWOTSWOT analysis is a great technique for identifying your SStrengths and WWeaknesses and study any OOpportunities and TThreats you face.It is also a powerful strategic planning toolstrategic planning tool used to evaluate a project or in a business venture or in any other situation of an organization or individual requiring a decision in pursuit of an objective. It involves monitoring the marketing environment internal internal and externalexternal to the organization or individual.

SWOT Analysis – Strategic UseSWOT Analysis – Strategic Use

Orienting SWOTs to An ObjectiveOrienting SWOTs to An Objective - If SWOT analysis does not start with defining a desired end state or objective, it runs the risk of being useless. If a clear objective has been identified, SWOT analysis can be used to help in the pursuit of that objective. In this case, SWOTs are:

Source: http://en.wikipedia.org/wiki/SWOT_Analysis

SStrengthstrengthsAttributes of the organization that are helpful to achieving the objective.

WWeaknesseseaknessesAttributes of the organization that are harmful to achieving the objective.

OOpportunitiespportunitiesExternal conditions that are helpful to achieving the objective.

TThreatshreatsExternal conditions that are harmful to achieving the objective.

SWOT Analysis – Creative UseSWOT Analysis – Creative Use

Creative Use of SWOTsCreative Use of SWOTs – If the objective seems attainable, the SWOTs are used as inputs to the creative generation of possible strategies, by asking (usually in groups) and answering each of the following four questions, many times:

Source: http://en.wikipedia.org/wiki/SWOT_Analysis

SStrengthstrengthsHow can we Use each Strength?

WWeaknesseseaknessesHow can we Stop each Weakness?

OOpportunitiespportunitiesHow can we Exploit each Opportunity?

TThreatshreatsHow can we Defend against each Threat?

SWOT Analysis – Internal and SWOT Analysis – Internal and External FactorsExternal Factors

The aim of any SWOT analysis is to identify the key internal and external factors that are important to achieving the objective. SWOT analysis groups key pieces of information into two main categories:

Internal FactorsInternal Factors OrganizationOrganization

Internal FactorsInternal Factors OrganizationOrganization

External FactorsExternal Factors External EnvironmentExternal Environment

External FactorsExternal Factors External EnvironmentExternal Environment

SStrengthstrengths

WWeaknesseseaknesses

OOpportunitiespportunities

TThreatshreats

4.1 SWOT Analysis – Errors to Be 4.1 SWOT Analysis – Errors to Be AvoidedAvoided

Conducting a SWOT analysis before defining and agreeing upon an objective (a desired end state). SWOTs should not exist in the abstract. They can exist only with reference to an objective. Opportunities external to the company are often confused with strengths internal to the company. They should be kept separate.SWOTs are sometimes confused with possible strategies. SWOTs are descriptions of condition, while possible strategies define actions.

Group ActivityGroup Activity

Break into groups of 4 – 6.Identify a potential product/service to invest in (e.g. buying a car), or business project/venture to pursue.Do a SWOT analysis to identify the key internal and external factors that are important to consider (refer to the template). Assess the findings, and make a decision.Example: Imagine you want to assess whether to study at SIHMC or

not. Do a SWOT analysis, assess and then make a decision.

5 min5 min Identify a potential product/service/project/venture to invest or pursue.

15 min15 min Do a SWOT analysis, assess, and then make a decision.

5 min5 min Document your SWOT analysis findings in the template provided.

15 min15 min Group presentation & discussion.

The Group leader must submit their findings in hard-copy or soft-copy format to the lecturer before or during the next class.

GOOD MORNING CLASS :GOOD MORNING CLASS :

25/11/11 FRIDAY

References:References:

Online ResourcesOnline Resources

Decision Making: http://en.wikipedia.org/wiki/Decision_making SWOT Analysis: http://en.wikipedia.org/wiki/SWOT_Analysis SWOT Tutorial: http://www.nelh.nhs.uk/folio/mchip/swot.pps SWOT Templates: http://www.businessballs.com/swotanalysisfreetemplate.htm Teacher in Bad Mood: http://www.sbac.edu/~tpl/clipart/Signs%20and%20Symbols/danger%2002.jpg Punk: http://www.rarepunk.com/images/punkrocker2.jpg Siti Nurhaliza: http://i31.photobucket.com/albums/c369/bukaninsanbiasa/ctmelayumerah.jpg Angry Teacher: http://www.webweaver.nu/clipart/img/education/angry-teacher.gif