Project Management Decision Making
There are specific techniques involved with decision making. Some of the more popular methods for decision-making include:
Pareto Analysis – This method is used when a project manager wishes to make changes, but is unsure of which changes to make. What he then does is makes a list of desired changes, ranks them, and then acts on the change with the highest ranking.
Decision Trees - Here, the manager will diagram the decisions that need to be made. For example, if the manager needs to decide between giving everyone a raise and developing a new product to generate more income, the tree will have these two items as “branches.” Each consequence or decision stemming from the original branch is diagrammed. Finally, after careful analysis the decision is made that will have weighed the various outcomes.
Cost/Benefit Analysis – This is the standard chart we made in grade school to help us clarify difficult decisions. You start with the decision that has to be made. Underneath it you begin listing the various costs involved in each choice. Once each choice has costs listed, then you list the benefits from making each choice. Analyze each section and make a decision based upon the choice with the least cost or the greatest benefit.
There are many other methods for decision-making when it comes to business choices. The importance of project management in terms of decision making lies in the fact that carefully managed projects will have most decisions already made.
