Framework Thinking for Decision-Making - toolthinker.com
Decision-making models provide structured approaches to assess alternatives, evaluate risks, and make informed choices. Common decision-making models include:
Rational Decision-Making
Model A systemic approach that involves identifying the problem, generating alternatives, evaluating options based on criteria, selecting the best alternative, and implementing and evaluating the decision.
Bounded Rationality
Recognizes that decision-makers have limitations in processing information and making optional choices. It emphasizes satisficing (selecting the first satisfactory option) rather than optimizing.
Intuitive Decision-Making
Relies on gut feelings, instincts, and past experiences to make decisions quickly and without conscious reasoning. It is often used in situations with time constraints or incomplete information.
Decision Tree
A graphical representation that uses branches and nodes to illustrate decision alternatives, possible outcomes, and associated probabilities, facilitating the evaluation of decision paths and their expected values.
Cost-Benefit Analysis
Compares the costs and benefits of different alternatives to determine the most economically viable option. It quantifies costs and benefits in monetary terms to support decision-making.
Multi-Criteria Decision Analysis (MCDA)
Incorporates multiple criteria or dimensions (such as cost, time, quality) to evaluate alternatives, and calculating overall scores to rank options.
Pareto Analysis
Prioritizes alternatives by focusing on the most significant factors or issues. It uses the Pareto principle (80/20 rule) to identify the vital few elements that contribute to the majority of the impact.
Delphi Method
Involves a group of experts providing input and feedback anonymously, aiming to reach a consensus through multiple iterations. It facilitates the exchange of knowledge and reduces biases in decision-making.
SWOT Analysis
Assesses an organization’s internal strengths and weaknesses, as well as external opportunities and threats, to identify strategic priorities and align resources accordingly.
Six Thinking Hats
Developed by Edward de Bono, this model encourages considering decisions from different perspectives (represented by different colored “hats”) such as logic, emotions, creativity, and risks, to gain a comprehensive view.
Vroom-Yetton-Jago
Decision Model Offers a systemic approach to choosing a decision-making process based on the level of involvement desired from subordinates time constraints, and the importance of the decision.
AHP (Analytic Hierarchy Process)
Priorities Alternatives by breaking down complex decisions into hierarchies of criteria and sub-criteria. It assigns numerical values to alternatives and criteria to determine their relative importance.
