Decision analysis

What is it?

Decision analysis is a technique to assist you, or a group, to determine the choice of an action to take, taking account of eg. the objectives, what alternatives there are and what risks are involved.

When to use it

  • Deciding which solution to implement
  • Deciding which course of action to take

What does it achieve?

When a decision is required, and people are given the opportunity to contribute towards the choices being considered, they will be more inclined to work as a team. The team members will be able to share information, and discuss their relevant positions and priorities, so that the reason for any decision is more readily accepted and understood.

Because the different options within the team have been aired, the process of making the decision is less biased and the decision itself is more balanced.

When faced with a number of options, decision analysis provides a structured route towards the best all round decision. These options should be considered by assessing:

  • The potential drawbacks of each option
  • All aspects to be considered against each option
  • All aspects to be considered for each option
  • Whether they will achieve the objectives

Key steps

  • Define decision required
  • Decide decision criteria - MUSTS and WANTS
  • Select options
  • Rate options
  • Look for adverse consequences and unforeseen benefits
  • Rate probability and seriousness of adverse consequences
  • Analyse and evaluate