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2

Identify the decision to be made together with the goals it should

achieve.

Determine the scope and limitations of the decision. Is the new job to

be permanent or temporary or is that not yet known (thus requiring

another decision later) ? Is the new package for the product to be put

into all markets or just into a test market? How might the scope of the

decision be changed--that is, what are its possible parameters?

3

 Get the facts.

  But remember that you cannot get all the facts. Get as many facts as

possible about a decision within the limits of time imposed on you and

your ability to process them, but remember that virtually every

decision must be made in partial ignorance.

4

Develop alternatives. 

Make a list of all the possible choices you have, including the choice of

doing nothing.

5

Rate each alternative

This is the evaluation of the value of each alternative. Consider the

negative of each alternative (cost, consequences, problems created,

time needed, etc.) and the positive of each (money saved, time saved,

added creativity or happiness to company or employees, etc.). 

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Rate the risk of each alternative. 

In problem solving, you hunt around for a solution that best solves a

particular problem, and by such a hunt you are pretty sure that the

solution will work.

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Make the decision.

If you are making an individual decision, apply your preferences (which

may take into account the preferences of others).

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Characteristics of Strategic Decisions

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Strategic decisions are likely to affect the long-term direction of an organisation

Strategic decisions are likely to be concerned with the scope of an organisation’s activities:

Strategy is to do with the matching of the activities of an organisation to the environment in which it operates

Strategy can also be seen as 'stretching' an organisation's resources and competences to create opportunities or capitalise on them.Strategic decisions therefore often have major resource implications for an organisation

Strategic decisions are therefore likely to affect operational decisions, to ‘set off waves of lesser decisions’

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The strategy of an organisation will be affected not only by environmental forces and resource availability, but also by the values and expectations of those who have power in and around the organisation. In some respects, strategy can be thought of as a reflection of the attitudes and beliefs of those who have the most influence on the organisation.

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Strategy is the direction and scope of an organisation over the long term, which achieves advantage for the organisation through its configuration of resources within a changing environment, to meet the needs of markets and fulfil stakeholder expectations.

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Strategic decisions are, then, often complex in nature:

The complexity arises for at least three reasons.

First, strategic decisions usually involve a high degree of uncertainty: they may involve taking decisions on the basis of views about the future which it is impossible for managers to be sure about.

Second, strategic decisions are likely to demand an integrated approach to managing the organisation.

Third, as has been noted above, strategic decisions are likely to involve major change in organisations. Not only is it problematic to decide upon and plan those changes, it is even more problematic actually to implement them. Strategic management is therefore distinguished by a higher order of complexity than operational tasks.

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4 Surefire Ways to Make a Bad Decision

1. Make decisions too soon

2. Ignore uncertainty

3. Don’t itemize the important factors

4. Be blind to available information

Practice all four of these and you are just about guaranteed to make weak decisions. How will you know? Your decisions won’t stick - they will be revisited again, people will implement actions not chosen, or the results of the decision will be invisible next week.