What is the decision management process?

Posted by maryparker on June 6th, 2014

The decision management is a technology stack and also a business discipline which builds on the existing enterprise and IT infrastructure, and it increases the transparency and business control of these systems. The decision management process is a framework of the implementation of business and also of predictive analytics. This process is closely related to decision making models which are agile, adaptive and analytic. There are five main concepts anyone in this domain must know, and they are business rules, operational decisions, predictive analytics, and optimization and decision analysis.

In modern management, the decision management process is a very important aspect. The main job of a manager is making rational and well-researched decisions. He usually is forced to take hundreds of decisions, and he does that both consciously and unconsciously. The decisions the manager usually takes are courses of actions which are the best when chosen by a set of alternatives. The decision making process is not a simple one, as means and ends are always linked together. Making decisions is a very important part of any company, and a good manager will know that any decision is taken before acting or preparing a plan for a certain problem.

The decision management process influences the effectiveness of the whole management of a given company, either big or small. This is definitely an intellectual process, and it also involves the selection of a course of action from a given set of alternatives. This process, is however, followed by planning and then organizing, coordinating, directing, motivating and controlling. What is important is that decision making is much more vital for a company than planning. Strategic decisions are always the first step towards success and recognition, and without well-made decisions, the objectives of the business are no be completed.

The decision making models, as it has been said, are a very important part of the while decision process, and they are not to be missed. There are, indeed, a series of factors which impact the choice and decision of a team or manager. These models are designed especially to help teamwork and speed the decision process. Brainstorming is such a decision making model, as it triggers certain knowledge and it can make the whole process much more efficient. Another model is the Pareto analysis. This method says that 20% of the work will generate 80% of the results. Other methods that can be used as a decision making model is the ratio analysis, such as pros/con, cost/benefit, risks/rewards. There are many models to help with making decisions, but a company should choose the best one which fits its business style.

Therefore, the decision management process is very complex and it involves a lot of resources and time-consumption, but it can be made more efficient with the help of specialized software. Every company should understand that there is a very close relationship between the decision making process and planning, so the manager hired should be highly competent and lead his team well enough to deliver great results.

The decision management process  represents a very important part of any business, and it should be highly appreciated and treated with seriousness. In this matter, decision making models  will definitely help.