Effective Decision-Making: A Methodology Approach

Effective decision making is critical to maximizing profit/minimizing expenses, return on capital spending, and operational efficiency. To understand the impact of decisions that affect the enterprise, professionals at every level must secure and integrate relevant cross-functional information. Register for this seminar and learn skills needed to base decision making on solid business knowledge and sound financial principles instead of on emotion or "your gut." The instructor walks you through the tenets of structured decision-making and teaches a step-by-step approach to make practical, effective decisions.

Note: Participants are requested to bring a scientific calculator capable of doing exponential calculations for class analyses.

What Will You Learn

By attending this seminar, you will be able to:
  • Define the decision boundaries and expectations for decision outcomes
  • Select the optimal methodology for decision making
  • Select the best decision-making criteria in making project decisions and allocating capital budgets
  • Determine the lowest enterprise costs in raising capital through debt and equity offerings
  • Analyze make-buy, buy-lease, replacement and other alternative enterprise decisions based on the best financial strategies
  • Articulate the financial sensitivity of project decisions and the use of decision tools for integrating cross-functional business requirements
  • Develop an effective decision-making structure for your unique specific project criteria and your organization

Is This Course For You

This seminar will benefit individuals having responsibilities in engineering, business, finance, marketing, purchasing, manufacturing, research, and program management. In addition, local government leaders and individuals in non-profits may benefit from these decision-making case studies in determining business decisions including which projects and grants should be supported. A group from the same organization may find it advantageous to attend together.

Materials Provided

This data is not available at this time

Course Requirements

This data is not available at this time

Topics

  • Decision Boundaries and Expectations
    • Region & Functions Impacted
    • Time Frame of Decision
    • Outcomes
    • Plan B
  • Decision-Making Principles
    • Evolution
    • Terminology
    • Types
    • Stages
  • Financial Principles
    • Time Value of Money, Interest & Inflation
    • Worth (Present Value, Future Value, etc.)
    • Financial Decision Methods (NPV, IRR, Payback Period, etc.)
    • Case Studies
  • Decision-Making Criteria
    • Market Demographics
    • Product or Service Position/Leadership, Parity
    • Financials & Price/Margin/Cost Reduction
    • Quality/Customer Satisfaction
    • Change in Business Direction/Vision
    • Personnel/Job Creation
  • Cost Impact & Enterprise Decisions
    • Cost of Capital: Equity & Debt, Revenue Sources
    • Cost of Ownership: Depreciation, Accelerated Cost Recovery
    • Influence of Tax Obligations
    • Case Studies
  • Alternative Financial Decisions for the Enterprise (Principles & Case Studies)
    • Make/Buy
    • Buy/Lease
    • Replace/Repair
    • Investments of Unequal Life
  • Sensitivity & Scenario Analysis & Decisions (Case Studies)
  • Decision-Making Methodology
    • Matrix Priority Rating System
    • Case Study by Attendees