business brief operations management

business brief operations management

MANNING & PETRIZZO 5-STEP CRITICAL THINKING DECISION-MAKING MODEL

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Step 1: Identify the problem(s) and uncertainties.

What exactly is the problem…

(Study the problem to clarify what you need to know to solve it. Distinguish problems over which you have some control from problems over which you have no control. Pay special attention to controversial issues in which it is essential to consider multiple points of view.)

The problem is this …

(Write out the problem clearly and precisely, with details. Write the problem in different ways until you get it perfectly clear in your mind.)

This is an important problem because…

(Remember in business, a problem is important if it affects the bottom line. So how does this problem affect the bottom line (net income).

The key question(s) that needs to be answered to solve this problem is…

(Every problem has questions connected to it. Here we want you to write out the most important question(s) you need to answer to solve the problem. State it clearly and precisely. Being specific is very important.)

Step 2: Obtain information.

The following information is needed to answer this question…

(Here you are looking for the facts and/or data that help you solve the problem. Actively seek the information most relevant to the question. Include in that information options for action, both short-term and long-term. Recognize limitations in the terms of resources such as money, time, and people.)

Some important assumptions I am using in my thinking are…

(Figure out what you are taking for granted. Make sure these assumptions are reasonable. Watch out for self – serving or unjustified assumptions.)

The points of view relevant to this problem belong to…

(Who are your stakeholders? Determine whether the stakeholder’s point of view is relevant.)

Note: Remember to view the information you have obtained for potential bias. This is from the perspective of your own bias to the research and the bias of the authors who compiled the data and the research you gathered. In other words, do not discount the importance of other’s data because of your own bias (is).

Step 3: Make predictions about the future.

If this problem gets solved, some important implications are…

(Evaluate options, taking into account the advantages and disadvantages of possible decisions before acting. What consequences are likely to follow from this or that decision?)

If this problem does not get solved, some important implications are…

(Evaluate options, taking into account the advantages and disadvantages of possible decisions before acting. What consequences are likely to follow from this or that decision?)

The potential alternative solutions to solve the problem are…

(If the problem involves multiple conflicting points of view, you will have to assess which solution is the best.)

Note: if the problem is one-dimensional, there may be just one correct solution.

Step 4: Make decisions by choosing among alternatives.

What is the best solution and why…

(After following the process above, I think the best solution to the problem is… Defend your recommendation.)

Step 5: Implement the decision, evaluate performance, and learn.

In business, the fifth step in the decision making process is implementation. In the MBA program, most times you will end with Step 4 since you will not have the opportunity to implement. You may be asked to develop an implementation plan and recommend how you will evaluate performance in some assignments.

COPYRIGHT Manning and Petrizzo (2010)

Adapted from: Bovee, C.L. and Thill, J.V. (2012). Business communication today (11th ed.). New Jersey: Prentice Hall.

Adapted from: Horngren, C., Datar, S., & Rajan, M., (2012). Cost Accounting. Boston: Pearson Prentice Hall.

Adapted from: Elder, L., & Paul, R. (2009). Guide to critical thinking. Dillon Beach, CA: Foundation for Critical Thinking Press.