The Fundamentals of Decision Quality (DQ)
Decision Quality provides the defining framework for a good decision. It is an extension of Decision Analysis (DA)—a set of concepts and tools that produce clarity about the best choice in an uncertain and dynamic environment. DQ not only uses DA to get to the “right” answer, but also engages the most important parties in the decision process to achieve alignment and commitment to action.
All high-quality decisions meet six requirements:
- Setting the right frame;
- Considering alternatives;
- Gathering meaningful data;
- Clarifying values and tradeoffs;
- Using logical reasoning; and
- Committing to action.
Focusing on each element of this rational decision-making model and involving the right people at the right time in the right way make it possible to create significant value and avoid mistakes that erode value. On the other hand, a lack of DQ leads to decision failures: Failed strategies, wasted capital in investment decisions, recycling of decisions, blaming, and witch hunts.
To learn more about the fundamentals of DQ, visit our Resource Hub and explore our webinars, insights and publications. We recommend the book Decision Quality: Value Creation from Better Business Decisions for those hoping to establish DQ in their organizations.