Decision-making for business people needs to leverage simple techniques. Indeed, in most cases, the problem is unknown in the real world, the situation highly opaque and highly uncertain. Therefore, simple frameworks and techniques that require little data can be much more helpful than complex models.
Speed-Reversibility Matrix
Lightning Decision Jam
Less-Is-Better Effect
Kelly Criterion
Ladder of Inference
Pareto Principle Analysis
Force-Field Analysis
Bounded Rationality
Cost-Benefit Analysis
Go/No-Go Decision Making
Scenario Planning
Decision Matrix
Satisficing
RAPID Framework
Foursquare Protocol
DACI Decision-Making
Lightning Decision Jam
Multi-Criteria Analysis
Cynefin Framework
SWOT Analysis
Personal SWOT Analysis
Pareto Analysis
Failure Mode And Effects Analysis
Key highlights of decision-making techniques in business:
- Speed-Reversibility Matrix: A technique for making quick and reversible decisions, especially in uncertain and complex situations.
- Lightning Decision Jam (LDJ): A method for making fast decisions and providing quick direction, developed by design agency AJ&Smart.
- Less-Is-Better Effect: Describes the consumer tendency to choose the worse of two options when each option is presented separately.
- Kelly Criterion: A formula-based approach to investing and gambling, used for wise resource allocation in bets or investments.
- Ladder of Inference: A thinking process where individuals move from a fact to a decision or action using mental models.
- Pareto Principle Analysis: A statistical analysis that identifies a small number of input factors that have the greatest impact on income.
- Force-Field Analysis: A decision-making tool to quantify factors that support or oppose a change initiative.
- Bounded Rationality: A concept where individuals make satisfactory decisions instead of optimizing in decision-making.
- Cost-Benefit Analysis: A process to analyze decisions based on the costs associated with making them.
- Go/No-Go Decision Making: A process of passing or failing a proposition based on specific criteria.
- Scenario Planning: A method to make assumptions about future events and their potential impact on business operations.
- Decision Matrix: A tool to evaluate and prioritize options based on specific criteria.
- Satisficing: A decision-making technique where individuals consider various solutions until they find an acceptable option.
- RAPID Framework: A tool to help businesses make important decisions by defining roles and responsibilities.
- Foursquare Protocol: An ethical decision-making model that helps businesses respond to challenging situations according to a code of ethics.
- DACI Decision-Making: A framework that assigns and displays responsibilities for decision-making.
- Multi-Criteria Analysis: A systematic approach for ranking options against multiple decision criteria.
- Cynefin Framework: A decision-making and problem-solving framework that provides context and guides appropriate responses.
- SWOT Analysis: A framework for evaluating an organization’s strengths, weaknesses, opportunities, and threats.
- Personal SWOT Analysis: Adapting SWOT analysis for personal use to address specific goals or problems.
- Failure Mode and Effects Analysis (FMEA): A structured approach to identifying design failures in a product or process.
Read Next: Mental Models, Biases, Bounded Rationality, Mandela Effect, Dunning-Kruger Effect, Lindy Effect, Crowding Out Effect, Bandwagon Effect, Decision-Making Matrix.
Related Strategy Concepts: Go-To-Market Strategy, Marketing Strategy, Business Models, Tech Business Models, Jobs-To-Be Done, Design Thinking, Lean Startup Canvas, Value Chain, Value Proposition Canvas, Balanced Scorecard, Business Model Canvas, SWOT Analysis, Growth Hacking, Bundling, Unbundling, Bootstrapping, Venture Capital, Porterโs Five Forces, Porterโs Generic Strategies, Porterโs Five Forces, PESTEL Analysis, SWOT, Porterโs Diamond Model, Ansoff, Technology Adoption Curve, TOWS, SOAR, Balanced Scorecard, OKR, Agile Methodology, Value Proposition, VTDF Framework, BCG Matrix, GE McKinsey Matrix, Kotterโs 8-Step Change Model.
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