There are a series of models and techniques that propose decision making strategies in the company and which have the objective of simplifying certain decisions.
When we make decisions, we must keep in mind that there are many variables that we can control, but many others that will not depend on us. Furthermore, at a probabilistic level, there will always be a degree of uncertainty in any decision we make.
In this article we will learn about different decision-making models and other strategies that can be implemented in the company.
The models that we will review below, and that contemplate decision-making strategies in an organization, aim, among other things, to reduce the cost/benefit impact of “wrong” decisions, to finally achieve the objective set by the company
These models help to choose the best option among the available options when deciding, taking into account that degree of uncertainty or possibility of making a mistake, which will always be present (although it can be reduced, as we have said).
1. Maximin (or Wald) model
The Maximin or Wald model proposes that, when making a decision, Let’s focus or fixate on the lowest (bad) ratings within all the possible solutions That is, “graphically” it would look like this: the lowest ratings would be 1 for solution A, 2 for B and 3 for C. Thus, within this range we would choose C, since it is the “highest among the solutions.” worse.”
However, choosing through this model does not ensure that we decide “correctly” 100%, since we can lose important information by not taking into account the other solutions. That makes the “best option among the worst” It does not always have to be the best or the one that fits perfectly with our problem.
According to Wald, this is a “pessimistic” decision-making model.
2. Maximax model
The Maximax model would be the opposite of the previous one (it is therefore an “optimistic” model); proposes choose or work with the data or solutions that have obtained the highest score
For example, if in our data table solution A has obtained 8 points, and on the other hand solution B has 10 points, and C 9 points, according to the Maximam model, we would choose solution B as the best solution, since its score is the highest, and therefore superior to all the others. That is, we would base our decision on this reasoning.
In the same way as in the previous model, choosing through this model does not assure us of a correct decision since we “leave aside” a lot of information (solutions with fewer scores) and we may be choosing a decision that, in practice, is not the best.
Other strategies to choose the best solution
Apart from these models that we have seen, there are other techniques or decision-making strategies in the company. Some of them are:
1. Assess the global situation
To make a decision, so that we reduce the degree of uncertainty we are talking about as much as possible, another strategy that we can use is to assess the situation in its entirety, in a general way, taking into account the most relevant intervening variables
To do this, it is important to take a certain perspective in relation to the problem or situation, trying to see it from the “outside”, evaluating the situation in the most objective way possible. In addition to focusing on the current situation, it will be important to look beyond, understanding the past causes that may have generated the situation, and visualizing possible solutions in the short and long term.
In this way, a comprehensive vision of the situation will help us to consider all possible options more objectively
2. Generate alternatives in parallel
This second of the company decision-making strategies that we propose focuses on having a plan B (even a plan C) in case plan A fails; That is to say, on the one hand, logically we must bet heavily on plan A, on our decision, and trust that it will work. However, It never hurts to have alternatives in case things didn’t go as we expected.
There will always be variables, no matter how minimal they may be (whether from the organization itself, from the workers, from competitors, etc.), that it will be difficult for us to control, or that we will not have the option to do so at all. Therefore, having other options in the pipeline will allow us to act with a certain feeling of security, since, if plan A fails, there are other options that we have already considered. Furthermore, plan B or plan C can be circumstantial or temporary, that is, they can be solutions to be applied while the situation is not definitively resolved.
So, If we use a strategy of creating alternatives in parallel, it will be easier to adapt to problems that arise and not have to paralyze the entire project.
Conclusion
Deciding, after all, means being able to plan for the future and organize all the elements that intervene in it with the objective of achieving specific goals
The fact that companies have to constantly decide between one or other options, and that they have to act in different areas of the organization (workers, investments, profitability, business plan, income and costs, etc.) to guarantee that everything works Like a perfect gear, it makes the decision-making process really important, and the situation must be carefully considered in each case.
However, making mistakes is part of the process, and should be seen as something possible and something to learn from in order to move forward day by day.
