In step four the decision alternatives have been created and now we have to evaluate the choices to see which one best fits the objectives of the decision maker(s). Right now if you are thinking of the car example you are being blinded by the fancy SUV that is over the budget. You really want that one and you can afford it if you go for the car pool idea (bias). However, you know that if you go through the rest of the process you may find that there is a better option. You need a little objectivity right now. It is time for the Decision Matrix.
1) Evaluate and Make Decision- by comparing the alternatives based on information and values (which objective is most important to you). Ask yourself which is best for me and those I care about, if this is a personal decision, or what is best for the business or organization? Before deciding, rate the alternatives on the elements or objectives. Use the Decision Matrix to help in this part of the evaluation process.
Here is a simple step by step example to get you started. Please see “Which House Do We Buy” example located in Week 3.
Decision statement is “Which House Do We Purchase”.
Objectives: What do you want or desire? 3 Bedrooms, 2 Bathrooms, 2 Car Garage, Basement, School Distance, Up to date Kitchen
Alternatives: How will you accomplish what you want in terms of what houses are you considering of purchasing? 123 Main Street, 456 Clark Road, etc…..
Decision Matrices (Photo attached for matrix one and matrix 2)
Matrix One (unweighted):
The resulting table (with the first house you visited scored): First Decision Matrix
In your response to this week you will need to explain each of the numbers in the first decision matrix by supporting how you logically scored each box. For example, the numbers showing in the first row for 123 Main Street – 3,2,0,1,2,1 – all have to be explained individually. The same will be required for 456 Clark Road, 3rd alternative, and so on.
Now you are going to add the WEIGHTS you have decided on for each of these six objectives: Total of the weights should equal 100%.
Matrix Two (weighted):
The first number is the value of that factor for a specific house based on the first matrix. The second number is the weight you have assigned that factor (its importance in %). Multiply the two numbers. Put the total at the end of each row.
Fill in the value for each of six houses you visit, and the highest score is the one you should buy. Why? Because the numbers in the table dictate which alternative satisfies as many of your objectives, based on your importance of each objective. This same thought process and application of the MDQ will be used for Project 1, in deciding which alternative Hannah should choose (the final decision).
2) Improve- are their gaps in the quality of the decision? Do you see areas that you are uncertain of or believe lack enough information? Repeat the process after filling in the gaps to see if the choice is 100% what you want from the decision. (Decision Quality Model, 2007)
Your total scores will suggest the best alternative and your decision.
Assessing the effectiveness of the choice by seeing how it worked in implementation.
Skill #10: Assess the decision choice made from the matrix results.
After a decision has been made and implemented, it is important to assess the outcome(s) and process used to derive the decision. Assessing confirms if the alternative chosen led to the desired outcomes.
Appraising the Decision Process
Assessing the process by which a decision was made is also effective. Often lessons can be learned that benefit the future. Here are a few areas that demonstrate the need for examination of the process:
Evaluating Outcomes After the Decision Has Been Implemented
The objective of evaluating outcomes is for the decision maker to develop an understanding of the ramifications of his or her choices. Many of the lessons developed in this stage come out of examining the implications of the decision. How and who did the decision affect and why? One can also consider whether a decision had the desired effect. For example, a decision to hold additional training seminars may have been intended to make it more convenient for people to learn a new technology. However, if overall attendance did not increase, then the decision may not have addressed the underlying cause of why people did not go to training events. Once the outcome of a decision is known, the results may imply a need to revise the decision and try again.
When decision outcomes are not clearly measurable or have ambiguous results—some parts good, some bad—is not uncommon for people to emphasize the favorable data and discount the negative. Maintaining self-esteem also may cause decision makers to attribute good outcomes to their actions and bad outcomes to factors outside their control. This type of bias can limit an honest assessment of what went right and what didn’t, and thus reduce what can be learned by carefully evaluating outcomes.
MDQ STEP FOUR AND FIVE: DECISION MATRICES AND FINAL DECISION
The purpose of Week 7’s Brainstorming Discussions is to Evaluate and Make the Decision by comparing the alternatives based on the objectives. This process is achieved in Step Four by creating two decision matrices – unweighted and weighted. Step Five involves Assessing the Decision Process, which is where Harry will state the final decision and how it fulfills HH’s objectives by examining the MDQ process in how that final decision was derived.
1. By FRIDAY, complete the following:
Invest in innovation: the main purpose of innovation is to provide a competitive edge in terms of efficiency and effectiveness. The opportunity of the innovation will mainly lie inside the product and production lines. In the product line, the company will make fascinating innovative suggestions to their products whereas, in the production line, the company can get innovative on its production technology to make the procedure fast and competent, without negotiating quality. This alternative will provide HH a chance to work efficiently or effectively as innovative provides the benefit that the rival company lacks. While HH may think they are on the right track with perusing this alternative, but there is need to be critical to avoid some traps, and biases like investing high cost of innovation as this will disturb another alternative of low cost (Making, Step 3: Alternatives, 2020, para. 3, characteristics of good alternatives).
Advertising aggressively, this alternative will allow the company to increase its sales significantly by raising awareness. The scope of aggressive marketing is the unconscious market and the extremely competitive market. The purpose of advertising or promoting is to reach out to a larger or wider range of audience and market than the rivals. There is a necessity to be serious to avoid some traps and biases like Poor advertising strategies and policies that will fail the alternative.
Lowering prices, this alternative will help to generate affordability that will attract the new and former audience. Its essential purpose is to provide the company with a larger reach through adjusting prices related to the competitors. These alternative biases and traps include a Lack of market-driven products.
Targeting a niche market, this alternative will allow you to focus on your specific target market, to determine their needs, wants, and requirements. Everyone may be a viewpoint for your product or service. But your advertising efforts will produce the best results for the lowest cost when you target predictions with the extreme need for what you offer. Recognize a niche or target market. Modify your advertising material to request their greatest need. Then multiply your consequences by defining several other niche markets and persuade your advertising materials to request the biggest need of prospects in each market. The possible biases or traps for doing this alternative will be Loss due to poor targeting strategies (Making, Step 3: Alternatives, 2020) (paragraph no. 3 & 4, characteristics of good alternatives).
-four objectives: 1.The best way(s) HH can increase sales. Focus on finding better ways to advertise to the current customers as well as to bring in new customers. Advertise on television, billboards, bench signs or even the side of a bus that way its outside of the general community.
2.The best way(s) HH can decrease expenses. By reducing expenses Harry has more room to play with the price of items and to be able to widen his retailers. Pushing products to other retailers can draw in more customers which can help increase sales all together.
3.The best way(s) to develop customer relationships while increasing growth. Showing the customers that they matter and not that you just want their money. Talk to the customers, see what they are into,what they may be looking for could be a little out of one’s perspective but sometimes you have to adjust to build the clientele. It’s important to remember if you have no customers than really you have no sales, so its always good to know what the customers like and feel.
4.The best way(s) to maintain a strong staff engagement. Build a healthy relationship with your staff. Show them that you need them in order to run a successful business. If the staff is happy there is a better chance they will get more customers to come and tell others about what is going on.