The_Essential_Manager_s_Handbook

210 / BECOMING MORE EFFECTIVE

Finding alternatives

Decisions are usually choices between

alternatives; so successful decision-

making depends on identifying the best

possible set of alternatives to evaluate.

Search widely, but remember you can’t

evaluate everything. You may need to be

creative and on occasions “to think the

unthinkable,” but don’t forget the obvious.

One alternative you should consider

is doing nothing. This is not always easy,

but may be a real alternative. At the very

least it gives you a benchmark against

which to compare the other possibilities.

In some circumstances you may find it is

possible to do two of the alternatives at

the same time. This will require greater

levels of evaluation than discussed here,

but asking the question can sometimes

overcome major dilemmas.

House

purchase

decision

BUY HOUSE A:

BORROW $300,000

Likely

interest

rate

Annual

mortgage

cost

Chance of

interest

rate

Proportion

of cost

10% $30,000 20% $6,000

6% $18,000 50% $9,000

4% $12,000 30% $3,600

$18,600

House A total expected annual

mortgage cost:

Decision chart for choosing between two houses

of employees in one survey

valued analysis more than

judgment in decision-making

43 %

US_210-211_Making_decisions.indd 210 30/05/16 3:03 pm