A Rational Decision Making Model
This Rational Decision Making Model usually follows six steps:
- Define the problem, characterizing the general purpose of your decision.
- Identify the criteria, specifying the goals or objectives that you want to be able to accomplish.
- Weight the criteria, deciding the relative importance of the goals.
- Generate alternatives, identifying possible courses of action that might accomplish your various goals.
- Rate each alternative on each criterion, assessing the extent to which each action would accomplish each goal.
- Compute the optimal decision, evaluating each alternative by multiplying the expected effectiveness of each alternative
with respect to a criterion times the weight of the criterion, then adding up the expected value of the alternative with
respect to all criteria.
Here are some ways forward:
See a PICK Chart for a very Simple and Powerful approach
Use SWOT as Decision Making Tool -
See Critical Example for a Software Company
This model has the advantages that you are unlikely to miss alternatives or important goals or criteria. It is also clear
how the decision was reached and can be reviewed by other independent parties.
The drawbacks of this model the selection criteria might be incomplete and the weightings used may be inaccurate and may be
do not fully address the things you really care about.
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