Scenario:

Decision Making Worksheet Instruction Steps

The PrOACT model of decision making uses five steps to help make difficult decisions.  PrOACT stands for problem, objective, alternatives, consequences, and tradeoffs. Use the following worksheet to document how the group applied steps of the PrOACT model in making the decision for the owners.

DIRECTIONS:

1. Before starting this process read and review the course readings:

• PrOACT Design
• Litemind Essential Guide to Creative Decision Making
• Lifetools PrOACT Introduction

2. In order to apply the model correctly, complete the worksheet step by step.

Students should ask the following questions in examining the explanation sections of this worksheet:

• Was each of the steps of the model followed correctly?
• How did the group come up with their conclusions (e.g. framing the decision, list of objectives etc.)?
• Did we explain it in detail (e.g. was the way the process was applied by the group explained in each step)?
• Did we use course material and case study facts to explain the reasoning behind the conclusions the group drew? Additional research?
• Did we use in text citations to reference the material used to support the logic behind the conclusion?
• Did we look at the grading rubric?

3. Other information in addition to the directions associated with the project.

• Third person writing must be used. Do not use statements such as “the group, I, the team, or the case study” in writing explanations.

• Students are expected to treat the explanation sections of the worksheet similar to a college level research paper. The logic presented in the worksheet may not be considered as common sense. All explanations must be supported with a source and facts from the case study.

• Use a cover page to include your name.

• Be sure to support the ideas, reasoning and conclusions put forth using the course readings, additional research and in text citations. The case study facts do not require in text citations. List references at the end of the document.

• Turn in the Worksheet only into the Assignment Submission Folder.

Step Three: Creating Alternatives

In creating alternatives, it is best to think outside the box to avoid the biases and influences that may be limiting your thinking. Key points in coming up with alternatives:

• Come up with every possible alternative that would meet the objectives. Do not restrict the number of alternatives at first.

• Being positive is important and helps to deflect the anchoring bias.

• Alternatives require data collection, stakeholder objectives and an approach that is not problem solving-oriented.

As part of this process, clarify the uncertainties involved and the risk tolerance associated with each of the alternatives.

Uncertainties: What could happen in the future and how likely is it that it will occur?

Risk Tolerance: When decisions involve uncertainties, the desired consequence may not be the one that results. How much risk is acceptable?  Do you have a high tolerance for risk, a medium tolerance for risk or a low tolerance for risk? Please make sure you understand the definition of risk tolerance. Risk tolerance is NOT the level of risk but associated with how much risk is acceptable.

Read and View:

• Lifetools PrOACT Lesson Three
• Decision Making Toolkit Uncertainties
• Structured Decision Making – Uncertainty
• Advantages and Disadvantages to including Stakeholders in Decision Making.
• Roles of Stakeholders in Planning Process

Step Four: Consequence Table

Review:

• Lifetools PrOACT Lesson Four
• Lifetools PrOACT Lesson Five

A decision maker must understand the possible Consequences (concerns) for each of the alternatives before making a final decision. Evaluate honestly the consequences of each alternative to help identify those alternatives that best meet all of the objectives. In order for the group to identify the consequences that an alternative may have for the decision maker, it is essential that the group envision how the decision maker expects the alternative to work when implemented.

For instance, in the Lifetools Lesson four explanation of the consequence table the example is given of the family who is choosing a vacation. In each alternative the family examines the vacation by actually envisioning how they expect to behave on vacation option. In one trip they imagine that the children would have more fun than the adults because of the activities the option affords. In another trip, they imagine that everyone has some activities to please while another trip has activities that work for everyone and an appealing side day trip that had not been thought about by the couple. The idea of a day trip having a side trip was so appealing that the couple revised their objective list to include the idea.  Notice in identifying the consequences of the trip options the couple imagines how the alternative will play out if they choose the alternative so they can determine how the trip meets the objective expectations. This is how they can see what consequences the alternative suggests. If their objective is to please the whole family then certainly the consequence of an alternative failing to please all is not an alternative to be considered and would therefore rate low in the consequence table for that objective.

One way to evaluate the objectives against each alternative is to use the consequence table below.   A consequence table helps provide a clearer view related to the performance of each alternative to meeting an objective. It does not rate the objective as to the value or importance to the stakeholder/decision-maker(s) merely how well the alternative “fits” the objectives of the decision maker.

Place the objectives list from Step 2 into the “Objectives” column.   Then, rate the alternative from Step 3 by placing a rating of 1(not meeting the objective well), 2 (meeting the objective well), or 3 (meeting the objective very well) into the associated box that aligns with the correct objective.  Total the score, should one be very low in meeting all the objectives then this would be a good time to eliminate the alternative.

Table 1 Consequences

Tradeoffs

Objectives frequently conflict and sacrifices must be made. Not all alternatives are a good fit.  The question then becomes how to choose the best alternatives.  One way to do so is to try to look for ways of equalizing the alternative or trade-offs.  Trade-offs focus on two things: (1) what consequences the decision maker/stakeholder is willing to accept and (2) what advantages the decision maker/stakeholders are not willing to give up by choosing an alternative.

In the trade off example in the Lifetools lesson Five, it was explained that a consequence of the alternative that featured a space with move in ready décor was higher rent. The alternative with poor décor had considerably cheaper rent. Since good décor was important to making the store successful as was low rent the question than became how to trade-off the poor décor and get a lower rent. Research was done and the cost of fixing up the space with the poor décor to the lower rent still kept the alternative as feasible. The rent savings was traded against the décor objective. Now the options were more equal in their status because the consequences of both options were minimized. The impact of the difference in rent payments was minimized by the increase of rent cost with the improved décor cost.

Using the consequence table 1 results see if you can find reasonable tradeoffs from the facts that will equalize alternatives. Be sure to use the Lifetools Lesson Five as your guide.

Table 2 Tradeoffs

Step Five: Decision Matrix

Once the objectives have been equalized using trade-offs, one final step requires weighing the objectives to the alternatives. This step puts some subjectivity back into the process. It allows the decision maker to identify one objective as more important than another and thus perhaps satisfy a value that is not met by equalizing all the objectives. To do this use a Decision Matrix tool.

Read and Review:

• Decision matrix sample in course content area
• Course Resources, toolbox, & decision matrix sample

Decision Matrix:

Complete the matrix below:

Part 1

Table One (Unweighted):

Replace Objective 1, Objective 2, Objective 3, Objective 4 and Objective with the actual identified objectives.  Then replace Alt 1, Alt 2, Alt 3, and so forth with the alternatives that you have identified.

Then, working through each column of objectives, rate each alternative with a rating of 0 (poor) to 5 (very good) depending on how well the alternative meets the objective.  It is possible to use the same rating for more than one alternative.

Total each row inputting the total under the Total column.

Rate how well each objective is met using a scale of 0 to 5, with 3 being the best.

Decision Matrix Table 1

Part 2

Table Two (Weighted):

Next, determine the importance of each objective by assignment a weight.  For example, Objective 1 may be the most important objective and you might assign a weight of 30%.  The least important objective may be 5%.

Input weight in the Weights column and total.  The total must equal 100%. Make sure there is a weight for each objective.

Multiply the rating from Table One.

Once all ratings have been multiplied, total the row and input the number under the Total column.

Decision Matrix Table 2

Step 6:  Linked Decisions

Before the selection of a final alternative, the decision maker must assess linked decisions.  Linked decisions look at the possible decisions that may need to be made after implementation of the alternative.  Mentally look into the future. Decisions made today will influence decisions of tomorrow. For example, remember the vacationers in the consequence table example? The couple liked the alternative that allowed them to take a day trip to Oxford. A linked decision would be how much would the side trip to Oxford cost? If the couple makes the decision to choose the alternative with the side trip because they like the idea of the side trip, only to find it costs too much, this is likely to change their evaluation of the alternative to meeting the objectives. Thus, affecting the decision, they make in choosing the alternative with the side trip in the first place. It is important to examine all possible decisions related to the one made to adequately assess how the alternative meets the objectives.

Step 7:  Make the Decision

Using all the tools, research, and model results collected by the group make the decision.

Step 8: Does the decision make sense? One Last Review

Earlier the point was made that the decision-making process needs to be reviewed during the work and at the end.  Reflection assures that bias and influence are weeded out as well as the fact that the best decision is made. In this reiterative step, discuss mistakes made in each of the model steps and how these mistakes were corrected.

Worksheet Submission Sheet

Step One: Framing the Decision

Step Two: Determining the Objectives

Step Three: Creating the Alternatives

Step Four: Examining the Consequences

Table 1 Consequences

Table 2 Tradeoffs

Step Five: Ranking and Weighting the Alternatives

Decision Matrix Table 1

Decision Matrix Table 2

Step Six: Linked Decisions to the Alternatives

Step Seven: Making the Decision

Step Eight: One Last Look at the Decision

Last Updated on April 28, 2019