Personal Perspective PaperHow do we, as leaders, make decisions? After decades of pondering, no singular method on the subject of decision-making exists. So how then does one know which method to choose, or if the right choice has been made, and why should one be used at all?To answer these questions, this author will refer to his personal experience on the subject. He has used a variety of decision-making tools, including PMI, SWOT, CBA, Decision-Trees, and MDPISA. Next, the author will explain what each of these tools are and how they can be used while demonstrating his experience with decision-making models.
PMI is the quintessential Pros versus Cons. It stands for Plusses, Minuses, and Interesting. The "interesting" column captures the implications of making each decision. This author has used this tool in almost every area of his life. It helps to see a problem rationally, without the distraction of emotions or ego.
SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. In this author's experience, mass-market retailers and companies that sell to them often use this. Strengths and weaknesses are used to analyze internal status, while opportunities and threats are used to analyze the external. This author has used this tool in determining which strengths to market, weaknesses to remedy, opportunities to pursue, and threats to fortify the company against.
CBA stands for Cost/Benefit Analysis. In this author's opinion, this is a requirement for any major corporate decision. This author has seen projects begun without a full comprehension of the human-resource, equipment, and inventory costs involved. These typically end in cutting losses or moving forward at the expense of other objectives in the organization.
Decision-trees are designed to help managers map every outcome of every decision. This author uses these in creating corporate guidelines and policy, specifically in quality control and...