Decision Making

Decision Making

1. Select alternatives

   • Alternatives should be selected on the basis of evidence and analysis rather than personal opinions.

2. Manage implementation and impact

   • Managing implementation through to impact requiresthat the decision should be clearly communicated

3. Key developments in effective decision making

   • Their finance people are business literate aswell as financial experts

4. The role of the management accountant

   • For decision making to be effective, management accountants must become finance/business partners.

5. Assemble information

   • This involves the provision of insightful information to describe the business's current financial and competitive position

6. Context/mindset

   • Decisions are taken in the general context of the organisation's overall strategic direction, ethics and culture by individuals with their own prejudices and attitudes in the context of the issue being considered.

7. Importance

   • The decision making process can be illustrated as a proposal considered by decision makers in the context of the organisation and its strategic position

8. Application

   • Effective decision making can be achieved by following a step-by-step process.

9. Definition

   • Decision making rangesfrom strategic decisions through to managerial decisions and routine operational decisions.