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Problem Analysis and Decision Making
Project Management, Project Risk Management, Quality ManagementSource - Article by Bob Andrew
Each of us, every day of our lives, have to make decisions. Our decisions can be small, big, critical or mundane. Generally, we don’t make the best decisions even if we have the best information. This is often because the decision-making strategies we use become complex as they usually depend on an interplay between economic factors (for example, what economic benefits we can see), our decision-making skills (for example, do we rely on our intuition or do we reason things out)and psychology (for example, our cognitive ability).
Another problem we often have is that in trying to make decisions, we often confuse problem analysis with decision making. If we think about it, problem analysis and decision making are two different things. Information we require for problem analysis is different from the information we require for decision making.
Deviations from performance standards are often the most likely cause of a problem. Performance standards prescribe what has to be achieved. Performance analysis identifies what actually has been achieved. Analysing the reasons for deviations from performance standards is often the best way for analysing a problem.
For decision making, we first need to establish and prioritise our objectives. We then need to identify a range of potential actions and evaluate them against all the objectives. The action that is considered able to achieve all the objectives in the best way becomes our tentative decision. To become our final decision, that decision must be evaluated for possible consequences that will impact upon the achievement of the objectives as a result of possible threats or risks that we have identified and evaluated. We can only accept the decision if we are able to mitigate and manage the possible threats and risks. If not, we start the process over by choosing another course of action.
While they are obviously interrelated, the distinction between problem analysis,problem solving and decision making should be made clear in any project environment. Problems caused by performance deviations should relate to achieving schedule, quality and cost requirements while decision making is the realm of identifying, evaluating and mitigating threats and risks, and any possible consequential impact on the project objectives.
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Thank you this introduction to DM & PS.
I am a subject-matter expert on decision making, and author of the book "The Art of Making Decision".
Decision Making is all I teach.
Presently I am training the "Warfare Dept. of the US-Navy".
I think you will find it worthwhile to review my website, as I introduce some very new concepts therein.
Feel free to write to me directly, if you have any questions.