Resource management and investment decisions are characterized by: Complexity and Uncertainty–multiple objectives and stakeholders, overlapping jurisdictions, short and long term effects, cumulative effects and high levels of uncertainty Difficult Judgments – including both subjective technical judgments made by experts about the potential consequences of proposed alternatives, and difficult value-based judgments made by decision makers about priorities, preferences and risk tolerances High stakes – including economic, environmental, social and political stakes – and, as a result – intense scrutiny from technical, public and political domains Limited resources – a need to do more with less, often on short timelines Growing expectations – for quality, consistency and transparency in decision making. What is SDM?An organized approach to identifying and evaluating alternatives that focuses on engaging stakeholders, experts and decision makers in productive decision-oriented analysis and dialogue and that deals proactively with complexity and judgment in decision making. It provides a framework that becomes a decision-focused roadmap for integrating activities related to planning, analysis and consultation. A set of core steps, guiding principles, and structuring tools based on the principles and practices of applied decision analysis. Practical methods that combine what we know about how decisions should be made with the realities of how decisions are made. A proactive response to expectations for:
What are the Benefits?Quality and Defensibility
Transparency and Accountability
Efficiency
Relationship Building
Learning and Capacity Building
On-ground Results
Make decisions: that are defensible, transparent, and efficient Build: relationships with stakeholders, decision-makers, and technical experts; capacity for dealing with uncertainty and future decisions Produce: results that meet objectives and are sustainable in the long-term Key Ideas
Unstructured Decisions: At the other end of the continuum are unstructured decisions. While these have the same components as structured ones—data, process, and evaluation—there is little agreement on their nature. With unstructured decisions, for example, each decision maker may use different data and processes to reach a conclusion. In addition, because of the nature of the decision, there may only a limited number of people within the organization qualified to evaluate the decision. Semi-Structured Decisions: Decisions in the middle between structured and unstructured decisions, requiring some human judgment and at the same time with some agreement on the solution method. Area of focus for most DSSs. In the middle of the continuum are semi-structured decisions – where most of what are considered to be true decision support systems are focused. Decisions of this type are characterized as having some agreement on the data, process, and/or evaluation to be used, but are also typified by efforts to retain some level of human judgment in the decision-making process. An initial step in analyzing which support system is required is to understand where the limitations of the decision maker may be manifested (i.e., the data acquisition portion, the process component, or the evaluation of outcomes). Structured Decisions: Structured or Programmed decisions are the ones where the organization has already faced such decisions. And the employees are used to solving such problems. For instance the hiring of new IT specialists in a firm. Many analysts categorize decisions according to the degree of structure involved in the decision-making activity. Business analysts describe a structured decision as one in which all three components of a decision – the data, process, and evaluation are determined. Since structured decisions are made on a regular basis in business environments, it makes sense to place a comparatively rigid framework around the decision and the people making it. Are you taking this time to come up with new skills? A side hustle? Or are you waiting for your CEO/ senior management to instruct you on what to do next? Most of the internet memes/posts right now are telling people that its ok to just rest and wait for the crisis to be over. But do you know when it's going to be over? We don't and if we do not act now, we may literally DIE. The Gorry and Scott Morton decision framework shows that junior management can only resort to structured decisions, middle management uses semi-structured decision making and only senior management can come up with unstructured decisions. But what if you break through the decision-making hierarchy and come out with your own unstructured decision? Organizations need to venture into new opportunities NOW before they get entangled in the economic recession. I have seen many organizations currently going into fresh food supply, virtual sessions and so on. Air Asia even came out with a new e-commerce platform. Now, that is unstructured decision making! It does not matter what title you hold or which part of the strata you belong to, come out with your ideas and make decisions fast to improve any business or organization you're part of. Background reading on the Gorry and Scott Morton decision framework: Unstructured decisions: These decisions require judgment, evaluation, and insight to solve the problem. Unstructured means “decision processes that have not been encountered in quite the same form and for which no predetermined and explicit set of ordered responses exists in the organization”. Semistructured decisions: These decisions have elements of both structured and semi-structured decisions. Only part of the problem has a clear-cut answer provided by an accepted procedure. A semi-structured decision is one that is partially programmable but still requires human judgment. Structured decisions: Means having processes in place to handle a situation. These decisions are repetitive and routine. Side note: Hey guys, in this volatile time, I thought of writing some of my thoughts and share what I have learned as an entrepreneur and MBA student. #Hanaawrites #PStips #Entrepreneurship #keephustling Reference: Kirs, P.J., Sanders, G.L., Cerveny, R.P. and Robey, D., 1989. An experimental validation of the Gorry and Scott Morton framework. MiS Quarterly, pp.183-197.
Structured decision making is an organised approach to identifying and evaluating creative options and making choices in complex decision situations. Gregory et al. (2012) defines structured decision making as ‘the collaborative and facilitated application of multiple objective decision-making and group-deliberation methods’. Structured decision making is designed to deliver insight to decision makers about how well their objectives may be satisfied by potential alternative courses of action. It is a very general approach to decision support, which can conceivably be applied to any environmental decision problem at any scale and any level of social and institutional complexity.
Structured decision making is designed to deliver insight to decision makers about how well their objectives may be satisfied by potential alternative courses of action. It helps find acceptable solutions across groups, and clarifies divergent values that may underpin irreducible trade-offs.
Potential benefits from using the resource
Broad approach can be applied to a vast number of situations of different complexities and scales. Handles conflicting values and uncertainty well over more simple analytic tools. Partitions process into smaller steps, simplifying the social and technical components of the problem. Clearly separates facts from values.
Potential limitations from using the resource
Large "human" element, so irresolvable conflicts between stakeholders can make progress impossible. Little guidance on how to undertake the steps within Structured decision making. Requires significant experience of Structured decision making to facilitate a fruitful outcome.
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What is a structured decision?
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