Life: Decision Making
We make decisions every day. Some big, some small. I noticed that most people do not have a framework that they apply to decision making. Most of the decisions are made on "gut-felling" and without required analysis. I attended an executive program on decision making at Harvard and as optional reading material, I read "Smart Choices" http://search.barnesandnoble.com/booksearch/isbnInquiry.asp?z=y&EAN=9780767908863&itm=2
It outlines a very simple approach which can be applied to all decisions-business, personal, financial, etc. The recommended model is called PrOACT-URL. It is:
Pr=Problem: Identify the problem correctly. E.g. when you buy a car, usually the problem is commute and not the car.
O=Objectives: What are trying to achieve by solving the problem? You can have multiple objectives with one problem.
A=Alternatives: What alternatives do you have and what alternatives can you create?
C=Consequences: how well the Alternatives meet your Objectives?
T= Trade offs: If can’t achieve all your objectives, what are you willing to trade off?
U=Uncertainty: What information you don’t have that my effect your decision?
R=Risk tolerance: How much risk are you willing to take?
L=Linked Decisions: What future decisions are linked with your current decision in evaluation? E.g. After you buy a car, you have to figure out where to park it.
You may want to quantify the PrOACT-URL factors and apply to a problem you are trying to solve. Good luck!
It outlines a very simple approach which can be applied to all decisions-business, personal, financial, etc. The recommended model is called PrOACT-URL. It is:
Pr=Problem: Identify the problem correctly. E.g. when you buy a car, usually the problem is commute and not the car.
O=Objectives: What are trying to achieve by solving the problem? You can have multiple objectives with one problem.
A=Alternatives: What alternatives do you have and what alternatives can you create?
C=Consequences: how well the Alternatives meet your Objectives?
T= Trade offs: If can’t achieve all your objectives, what are you willing to trade off?
U=Uncertainty: What information you don’t have that my effect your decision?
R=Risk tolerance: How much risk are you willing to take?
L=Linked Decisions: What future decisions are linked with your current decision in evaluation? E.g. After you buy a car, you have to figure out where to park it.
You may want to quantify the PrOACT-URL factors and apply to a problem you are trying to solve. Good luck!
