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Strategic Decision Making

Scris de  Luni, 28 Mai 2012
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We take decisions every day, but some of our choices seem difficult and require special attention. In this context, it is useful to employ basic analytical frameworks that ease the decision-making process and make our options relatively clear.

Generally, two main styles of decision-making can be recognized. The first category represents the “irrational” or “subjective” decisions. These are taken based on the person’s emotions, feelings, intuition, etc. The second category is the process-based or strategic decisions that are taken based on multidimensional analysis of the situation, examination of the previous experience, evaluation of the impact, etc. The strategic decision-making is a tool that is mostly employed in business-like environments and refers to the evaluation of the medium and long-term impact of the decision.

As follows one of the basic techniques of the strategic decision-making called the T-chart will be briefly described. First use of this method emphasizes the “pros” and “cons” of the option choice.

For example, what are the pros and cons of volunteering?

Pros

Cons

community involvement time commitment
personal growth no pay
social networking additional responsibilities

Other option to use the T-chart is to analyze few choices simultaneously. In this case, the advantages of the most suitable alternative will be highlighted. Also, the individual may consider applying the t-Chart for examining the negative consequences or the risks.

For example, there are few options for solving the commuting issue

Option 1

Drive a car

Option 2

Use public transportation

Option 3

Ride a bike

Pros Cons Pros Cons Pros Cons
Comfortable riding Additional  expenses Cheap Less comfortable Eco-friendly Weather dependent

In conclusion, the T-chart highlights the main trends of the decision to be made, offering the opportunity to evaluate the relevance and desirability of each scenario. It represents as well a handy tool that can be easily applied to various situations. However, it is important to keep in mind that no category of decision-making approach can be considered ideal. The individual should adapt and combine both “irrational” approaches with the “strategic analysis” in order to make responsible decisions.