How to systematically analyze any situation for better decision making

24 08 2006

The ability to analyze and make decisions is one of the most important qualities of anyone in a leadership and management position.

How to systematically analyze any situation

  • What does the information I have really mean or reflect?
  • What are the questions I should be asking in order to increase my understanding of the situation?
  • Who are the people who have the information and answers to my questions?
  • Ask the questions and accumulate the required information.
  • What are the fears, expectations, limits and points of view of the involved parties?
  • What have I learned, and what am I going to do about it?

Example: Imagine that your salesforce reports that customers are demanding delivery of your products to their store two times a day, at 9:00 AM and 4:00 PM, instead of the current delivery schedule of 3 times a week. What do you do?

Begin the analysis.

What does this mean? The customers needs or desires have changed. Our salesforce has detected a change in the marketplace.

What questions do I need to ask to understand this? Why is the customer requesting the change? Who requested the change, is it driven by costs, lack of inventory space, new management, competitors? What do our people think about this? What customers are requesting the change?

Who are the people with the information and answers to my questions? Your sales-force and logistics department. The CEO, purchasing managers and warehouse managers of our customers. Who is going to contact them and get more exact information about the situation?

Expectations and points of view of those involved? The sales-force knows that without this change they will lose customers and market share. The customer’s executives and purchasing managers have found an method to reduce inventory and stocking costs with your competitor. The warehouse managers are losing personnel and control and are unhappy. There are significant costs associated with implementing and operating the program. Your competitors are aggressively investing in order to take away your market share.

What have I learned and what am I going to do about it? You discover that a competitor is providing deliveries twice a day, and stocking the customers shelves, reducing costs for the customer. They have made significant investments in trucks and personnel in order to provide this service. Your top 20 customers are affected now. Failure to provide equal or improved service will result in the loss of the customers and your market share. It’s time to bring in the company decision-makers and create an appropriate solution and response.

Related Links

Was Peter Drucker right, is it all about attitude?

9 Steps to better decisions

About these ads

Actions

Information

4 responses

23 05 2007
Can't make a decision? « Lee Iwan Accumulated Experience

[...] How to systematically analyze any situation for better decision making [...]

15 06 2007
Maximize the impact of business conferences, seminars, and special events in your organization « Lee Iwan Accumulated Experience

[...] How to systematically analyze any decision for better decision making [...]

29 01 2011
oluchi

i wll like to be updating in any of your articles

23 01 2013
Dan Sanders

I love more list of questioning.These are great.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s




Follow

Get every new post delivered to your Inbox.

Join 49 other followers

%d bloggers like this: