Decision Making: The Fundamentals
Presentation & Facilitation Guide
© 2011 SkillSoft Ireland Limited
Introduction and Ground Rules
• Presenter: [enter name of presenter or facilitator].
• Target audience: Individuals who want to develop or improve their
problem-solving and decision-making skills.
• Goal: To become a more effective decision maker by learning how to
adapt your decision-making style to suit the situation.
• Ground rules:
• List ground rules here.
Decision Making: The Fundamentals
2
Agenda
• Course Overview.
• Topic 1: The Basics of Effective Decision Making.
• Topic 2: Decision-making Styles.
• Topic 3: Adapting Your Decision-making Style.
Decision Making: The Fundamentals
3
Course Overview
• 50,000 decisions every day.
• Many decisions are unimportant.
• Others are critical.
• Most people aren't trained to
make decisions.
Decision Making: The Fundamentals
4
Topic 1: The Basics of Effective Decision Making
Sequence examples of the steps in the decision-making process.
Decision Making: The Fundamentals
5
Effective Decision Making
• You make thousands of decisions every day.
• Identify alternatives, analyze them, and choose the best.
Decision Making: The Fundamentals
6
Reasons for Making Decisions
• Solve a problem.
• Move an organization forward.
• Gloss over a mistake.
• Improve your standing.
• Fit into a new peer group.
Decision Making: The Fundamentals
7
The Importance of Good Decision Making
• Important for personal and professional success.
• Necessary for career advancement.
• Make more efficient use of time and resources.
• Move organizations forward and help achieve goals.
• Be more confident about your decisions.
Decision Making: The Fundamentals
8
Practice
Why is effective decision making important?
A. It's important for achieving personal success.
B. It ensures you can be quick in reaching firm decisions.
C. It's necessary for professional advancement.
D. It prevents you from having to rely on the participation of others in reaching decisions.
E. It can prevent wasted time, effort, and money.
F. It can give organizations a competitive edge.
G. It can improve your confidence in the choices you make.
Decision Making: The Fundamentals
9
The Decision-making Process
The Decision-making Model
Step 1: Establish a context for success.
Step 2: Frame the issue properly.
Step 3: Generate alternatives.
Step 4: Evaluate alternatives.
Step 5: Choose the best alternative.
Decision Making: The Fundamentals
10
The Decision-making Process - Example
• Nationwide distributor of college-level textbooks.
• Drop in sales and profitability.
• Team needs strategies and measures to ensure sales and profit growth.
Decision Making: The Fundamentals
11
Establishing a Context for Success
• Involve the right people.
• Keep the decision group small.
• Encourage participation.
• Choose diverse settings.
• Avoid advocacy.
Decision Making: The Fundamentals
12
Framing the Issue Properly
• Address the real issue.
• Don't accept your initial perception.
• Approach the issue from several angles.
• Be creative.
Decision Making: The Fundamentals
13
Generating Alternatives
• Brainstorm.
• Involve creative people.
Decision Making: The Fundamentals
14
Generating Alternatives
Good alternatives:
• Are unique and broadly constructed.
• Take resources and constraints into account.
• Offer a real choice.
Decision Making: The Fundamentals
15
Tools for Evaluating Alternatives
Prioritization matrix.
Decision Making: The Fundamentals
16
Tools for Evaluating Alternatives
Trade-off table.
Decision Making: The Fundamentals
17
Tools for Evaluating Alternatives
• Decision tree.
• Software programs.
Decision Making: The Fundamentals
18
Choosing the Best Alternative
• Know when to end the deliberations.
• Turn the decision into action.
Decision Making: The Fundamentals
19
Practice
Ahmed is the features editor for an adventure travel magazine. He has been
getting complaints that feature articles in the magazine are too tired and contrived.
Now he wants to decide on a feature for the next issue.
Sequence the example of the steps in the decision-making model.
If necessary, access the job aid "The Decision-making Model" to help you answer
the question.
___
He explains why the chosen article is the best alternative and promises to pass on all
reader feedback he receives.
___
He asks for ways to improve his department's feature articles.
___
The team brainstorms, thinking of unique and viable feature articles.
___
He asks a few key people and some very creative people to attend a planning session.
___
The team uses a prioritization matrix to evaluate solutions under a range of criteria.
Decision Making: The Fundamentals
20
Discussion
Consider a business decision you had to make.
Did you follow the five-step model when deciding what course of
action to take?
Decision Making: The Fundamentals
21
Topic 2: Decision-making Styles
Match each example with the decision-making style it best
exemplifies.
Decision Making: The Fundamentals
22
The Four Decision-making Styles
People approach decisions in different ways.
Decision Making: The Fundamentals
23
Reflect
Think about Lisa and Anton's different approaches to the same
situation. Is either person's approach the most appropriate?
Decision Making: The Fundamentals
24
The Four Decision-making Styles
Decision Making: The Fundamentals
25
The Four Decision-making Styles
• Which style do you use most often?
• Approach depends on situation.
Decision Making: The Fundamentals
26
Practice
Which decision-making style did Rick use?
A. Consultative style.
B. Traditional majority or voting style.
C. Authority or expert style.
D. Consensus style.
Decision Making: The Fundamentals
27
The Authority or Expert Style
Decision Making: The Fundamentals
28
The Consultative Style
• Valuable input.
• Takes longer.
• Results in better decisions.
• Leads to greater trust.
Decision Making: The Fundamentals
29
Practice
Which decision-making style is Gail using?
A. Consensus style.
B. Authority or expert style.
C. Consultative style.
D. Traditional majority or voting style.
Decision Making: The Fundamentals
30
The Majority Voting Style
Creates "winners-and-losers" mentality.
Decision Making: The Fundamentals
31
The Consensus Style
• Complicated.
• Time consuming.
• Best used only to decide on key issues.
Decision Making: The Fundamentals
32
The Four Decision-making Styles
• Be aware of your decision making style.
• Acknowledge different styles.
Decision Making: The Fundamentals
33
Practice
Match each scenario to the corresponding decision-making style.
Scenario
A. Board members discuss alternative strategies for
downsizing, and adopt a strategy once it meets
everyone's basic approval.
B. A team leader decides on the criteria for
determining staff bonuses and then explains
these to the team.
C. A manager asks staff to test different software
and gets everyone's feedback before deciding
which product to buy.
D. At an annual general meeting, shareholders of a
firm elect a new chairman of the board through a
show of hands.
Decision Making: The Fundamentals
34
Style
___
Consultative style.
___
Authority or expert style.
___
Consensus style.
___
Traditional majority or
voting style.
Discussion
Have you ever made a decision using the authority or expert style?
Was this the most appropriate style to use for the decision you were
making? How did those affected by your decision react?
Decision Making: The Fundamentals
35
Topic 3: Adapting Your Decision-making Style
Adapt your decision-making style to suit a given situation.
Decision Making: The Fundamentals
36
Influential Factors in Decision Making
• Different types of decisions.
• Different decision-making styles.
• Adapt style to suit the situation.
Decision Making: The Fundamentals
37
Factors That Influence Your Choice of Style
• Time.
• Importance.
• Knowledge.
Decision Making: The Fundamentals
38
Factors That Influence Your Choice of Style
• Buy-in.
• Experience.
Decision Making: The Fundamentals
39
Choosing the Right Decision-making Style
• Weigh up different factors.
• Pick the style that best suits the situation.
Decision Making: The Fundamentals
40
Choosing the Right Decision-making Style
Take on new project or turn it down?
• Further lucrative opportunities.
• Variety of risks.
• Quick decision needed.
Decision Making: The Fundamentals
41
Practice
Which decision-making style is most appropriate in this situation?
A. Consensus.
B. Traditional majority or voting.
C. Authority or expert.
D. Consultative.
Decision Making: The Fundamentals
42
Choosing the Right Decision-making Style
Custom Development Team
Keep?
Disband?
• Retain talented team
members.
• Increase productivity of
other teams.
• Keep important clients.
• Expand team members'
abilities.
Important that managers support the decision.
Decision Making: The Fundamentals
43
Practice
Identify the two decision-making styles that are most appropriate for
this situation.
A. Authority or expert.
B. Consensus.
C. Traditional majority or voting.
D. Consultative.
Decision Making: The Fundamentals
44
Choosing the Right Decision-making Style
• Affects all employees.
• Impacts client perceptions.
Decision Making: The Fundamentals
45
Practice
Which decision-making styles are most appropriate in this situation?
A. Consultative.
B. Authority or expert.
C. Majority or voting.
D. Consensus.
Decision Making: The Fundamentals
46
Adapting Your Style
• Time constraints.
• Experience and knowledge.
• Importance of decision.
• Level of buy-in.
Decision Making: The Fundamentals
47
Practice - Case Study Info
Julia owns a small but busy stationery shop. She employs a few
permanent staff members – two drivers, two sales clerks, an
administrative assistant, and a financial manager. Julie herself manages
the business's relationships with suppliers.
Julia maintains a very strong grip, making almost all business-related
decisions by herself. However, she now realizes that she needs to focus
on adapting her decision-making style, depending on the situations she
faces.
Answer the questions that follow to help Julia adapt her decision-making
style based on the situations she faces.
Decision Making: The Fundamentals
48
Practice
One of the company's delivery trucks has broken down, and an engine
part needs to be replaced. There are three possible replacement parts,
ranging in price and quality. The mechanic working on the truck needs to
know which part to use, and he needs an answer within the next three
days. Julia's drivers are motor vehicle enthusiasts, but Julia and the other
employees don't know much about engines.
Which decision styles are most appropriate for Julia to use?
A. Traditional majority or voting.
B. Authority or expert.
C. Consultative.
D. Consensus.
Decision Making: The Fundamentals
49
Practice
During a telephone conversation, a supplier mentions that he's doubling
the price of his stock. Julia realizes that if she's to retain the supplier, she'll
make a loss on these items. Before Julia ends the conversation, she
needs to decide whether to stay with the supplier or seek an alternative.
Which decision style is most appropriate in this case?
A. Consultative.
B. Authority or expert.
C. Consensus.
D. Traditional majority or voting.
Decision Making: The Fundamentals
50
Practice
At the end of a particularly stressful day, Julia decides to take her staff out
for dinner. Unfortunately, most of the restaurants in the area are booked
for the night, and she's left with a choice of only two places to eat. Julia
and the staff are ready to go, so a quick decision is important.
Which decision style should Julia use to decide on a restaurant?
A. Consensus.
B. Traditional majority or voting.
C. Consultative.
D. Authority or expert.
Decision Making: The Fundamentals
51
Discussion
Think of business decisions you have made in the past.
Did you adapt your decision-making style according to each situation?
How did this impact on the outcome of your decision?
Decision Making: The Fundamentals
52
Wrap-up / Q&A
• Topic 1: The Basics of Effective Decision Making.
• Sequence examples of the steps in the decision-making process.
• Topic 2: Decision-making Styles.
• Match each example with the decision-making style it best exemplifies.
• Topic 3: Adapting Your Decision-making Style.
• Adapt your decision-making style to suit a given situation.
Decision Making: The Fundamentals
53