Decision Management Process

Decision Management Process

1. Inputs

   • Decision situation

2. Outputs

   • Decision management strategy
   • Decision report
   • Decision record

3. Activities

   • Prepare for decisions
   • Analyze the decision information
     • Decision Tree
       • A well suited analytical approach Good when the decision structure has few chance and decision nodes Requires the end node consequence to be expressed as in terms of a single number Where decision alternatives can be easily monetized
     • The trade study is most commonly used by SE
     • Frame the decision
       • Develop objectives and measures
         • Generate creative alternatives
           • Assess alternatives
             • Synthesize results
               • Identify uncertainty
                 • Sensitivity analysis
                   • Improve the alternatives
                     • Communicate trade-offs
                       • Improve alternatives
                         • Present recommendation and Implementation Plan
     • MODA
       • Establish the decision concept Identify options to be appraised Identify objectives and criteria Scoring Weighting Combine the weights and scores for each option to derive overall value Examine the results Sensitivity analysis
   • Make and manage decisions

4. Key Thought

   • Positioning decision management as a critical SE activity will ensure efforts are rightfully interpreted as relevant and meaningful and thus maximize the discipline’s value proposition to new product developers and their leadership

5. Key thought

   • A formal decision management process is the transformation of a broadly stated decision situation into a recommended course of action and associated implementation plan