Strategic Decision Making Process – Methodology for solving complex business problems well

By Professor and Associated Partner Nils L. Randrup, Magnificent

Executive Summary

Professor and Associate Partner Nils L. Randrup, Magnificent

This article is about the way managers approach complex strategic problems. It outlines a general best-practice based strategic decision making process of how to approach, analyze and solve the problem. First step is to make the decision context clear, secondly the situation must be analyzed and facts gathered in order to understand the issues at hand, and then a strategic diagnosis must be made and decision taken on which root cases to solve and in what order. Then a number of relevant strategic options should be identified and then each alternative must be properly evaluated against each other, before settling on a recommendation of the best option. Then the implementation plan must be outlined for the recommendation. Finally, the recommendation must be presented in a decision making document which must then be finally agreed by the decision makers and key stakeholder, and a communication plan must be drafted for when and how to share the decision with the rest of the organization.