AIM-IRS
Annual Business Meeting
& Training Seminar
Decision Making
and
Problem Solving
Decision Making & Problem Solving
Perspective:
Should you "take the initiative”? When to
bring a decision to your boss, and when to
handle it yourself. A good decision now is
better than a great decision later! Find out
how to attack "decision fear" in yourself
and others.
Decision Making & Problem Solving
Introduction
Basics
– Decision making
– Completed staff work
Decision Making & Problem Solving
Decision making
– Outcome
– Course of action
• Produces a final choice
• Output
– Action or
– Opinion
Decision Making & Problem Solving
Decision Making Techniques
•
•
•
•
•
•
Listing
Random or coincidence
Accepting the first option
Forms of divination
Acquiesce
Highest probability
Decision Making & Problem Solving
Tool for Decision Making
• Risk Management
Decision Making & Problem Solving
Risk Management
• What could go wrong? = Risk
• How likely is it? = Probability
• How bad is it? = Impact
• What can be done to prevent it from
happening? = Mitigation Plan
Decision Making & Problem Solving
Risk Statement
“If” – A condition that describes the
situation or circumstances
“Then” – Consequence of the condition or
circumstance
Decision Making & Problem Solving
Risk Probability – general guidelines
 “Low” – Probability of the risk occurring is less than
25%
 “Medium” – Probability of the risk occurring is
greater than 25% and less than 75%
 “High” – Probability of the risk occurring is greater
than 100%
Decision Making & Problem Solving
Risk Impact – Assessment of the overall
impact of the condition, considers multiple
factors such as cost, schedule,
performance, etc.
“Low” – Low or no impact to all factors
“Medium” – Medium impact to some or all
factors
“High” – High impact to some or all factors
Decision Making & Problem Solving
Risk Mitigation – What is done
with the risk?
Transfer
Assume
Control
Avoid
Decision Making & Problem Solving
Risk Assessment – Review
all the risks for probability,
impact and mitigation
Risk
Probability Impact Mitigation Overall
Risk 1 Medium
Low
Assume
Low
Risk 2 Medium
High
Avoid
High
Decision Making & Problem Solving
Risk Management Summary
• Risk Based Decision – What course of action is
selected based on the risk assessment?
 Do we choose to accept the probable impact of the
risk with the appropriate mitigations?
 Are there alternatives that provide a similar outcome
with lower probable impacts?
 Is this a rational decision?
 Is this the best decision?
Decision Making & Problem Solving
Executive Expectation:
Completed staff work
Decision Making & Problem Solving
The Doctrine of Completed Staff Work
• Completed staff work:
– Study of a problem, and
– Presentation of a solution
Note: Completed action so that the boss
may indicate approval or disapproval.
Decision Making & Problem Solving
Your duty is to work out the details.
• Do consult other staff members.
• Worked out product in a finished form.
• Resist the impulse to ask the boss.
Decision Making & Problem Solving
Boss
Your job
• Needs answers
• Does not need
questions
• Approves or
disapproves
•
•
•
•
•
Study
Write
Re-study
Re-write
Deliver a proposed
product
Decision Making & Problem Solving
Tips
• Avoid long explanations.
• A memo to your boss is not completed
staff work.
• Writing a memo for your boss to send to
someone else is.
• Your finished document should simply
require the boss’s signature.
Decision Making & Problem Solving
Rough Drafts
• Are okay to have
• Must be fully developed ideas
• Are not be an excuse for shifting
responsibility to the boss
Decision Making & Problem Solving
Final Test
• If you were the boss, would you be willing to
sign the paper you have prepared, and stake
your professional reputation on it being right?
• If the answer is no, take it back and work it over,
because it is not yet completed staff work.
• Remember, the boss isn’t the editor, make sure
the memo is 100% “good to go”, no typos,
proper English, etc.
Decision Making & Problem Solving
Completed Staff Work Summary
Make the decision to solve the problem
and present your recommendations to
your boss in the form of completed staff
work.
Decision Making & Problem
Solving
IRS Strategic Plan
Decision Making & Problem Solving
• IRS Strategic Plan
Goal 1: Improve service to make voluntary
compliance easier
Goal 2: Enforce the law to ensure everyone
meets their obligation to pay taxes
Strategic Foundations: Invest for high
performance
• Are the decisions we’re making supporting
the Strategic Plan?
Decision Making & Problem Solving
• IRS Values
 Honesty and Integrity
 Respect
 Continuous Improvement
 Inclusion
 Openness and Collaboration
 Personal Accountability
• Are the decisions we’re making in
line with the IRS Values?
Decision Making & Problem Solving
• Summary
Take the initiative to make a decision
Know the facts
Clearly articulate the issues
Finally – Recommend a course of
action!