86 Understanding Rational Decision Making
On the next page is a salary request from a manager in an engineering fi rm to his upper man-
agement (note: the dates, the position and its attributes, the names of the fi rm’s employees, and the
locations of the teams have been changed). The think-aloud comments are those of an experienced
business manager who was asked to put himself into the role of a high-level manager and to make
a decision based on the information provided. The expert manager’s comments are numbered and
inserted into the salary request memo in bold and brackets.
Notice that the expert’s comments about the request are quite skeptical. What is missing from
the salary request is information that addresses the audience’s decision criteria about the cost of the
TABLE 2.6 Experts’ Comments That Reveal Their Decision Criteria for Making Budgetary Decisions
Comments on a Purchase Proposal by an
e-Business CEO
Comments on a Purchase Proposal by
a Manager in a Credit Company
Nature and
cost of the
expenditure
- Do we have to spend that much
[$392,515] up front? Why can’t we phase
this in? - Why are you pushing JAVA? Give me
some industry or company perspective on
your premise. - This techie stuff could be rolled up into
concepts that map to a business goal.- What exactly is it that you’re
proposing? - Are you also proposing changes
to how the mail is processed?
I can’t tell from the information
you provide just what you’re
getting at. - You indicate that there is an
additional expense in reordering
envelopes for the mail stuffer. Is this
a big cost? I would have to know
this in order to make a decision.
- What exactly is it that you’re
Impact on
strategy and
operations
- I would have expected business goals or
something to start with. This section on
background information is not the best
lead material. - What are the factors that were used
to evaluate our options? This should be
shown up front. For example, “Here are
the key challenges for us. Here are the
factors we used. Here’s where the industry
is going. Here’s how we can get there.” - You get into factors like scalability and
reliability but they are buried.
3. You’ve provided lots of facts and
fi gures about costs and options,
but why? What problem are you
trying to resolve? Your proposal
just presents a lot of information,
but never explains why you’re
providing it.
Financial
benefi ts
- Cost savings are always hard to even
estimate. I would not lead with something
like this.
4. By reducing the manpower
required to stuff envelopes, doesn’t
that save money as well? How
much?
Risks
involved with
implementation
- How about the cultural fi t and ability
for our e-company to support this? How
about vendor stability, market momentum? - Did anyone tire-kick this stuff by
laying hands on it?
[Perhaps because of the small up-
front cost—$6,240—this expert
did not indicate whether or not he
noted the proposal’s lack of a risk
assessment.]
Urgency of
request
- Even if it is stated that we need this
now, how do you draw this conclusion?
In other words, traffi c, load, etc. Do you
reference our current platforms?
[This expert did not indicate
whether or not he noted the
proposal’s lack of urgency.]
Qualifi cations
of requester
- I’m not sure on the bias of the writer
of this proposal. Were business unit folks
consulted? At a minimum, marketing folks?
[This expert knew the requester
well and did not indicate a need for
further information about him.]