About this Presentation
This presentation describes large-scale decision making under uncertainty. In TOC terms these are the Step 4 elevate types of decisions. Different environments are described with different types of decisions as examples: a medium-sized property developer understands that all large land acquisition decisions face significant uncertainties (wrong decisions are costly); a chemical company serving international markets (what country do we enter; do we acquire or build); a large steel company (what is the product mix for the market buffer) and a pharmaceutical company (capacity decisions for contract research). These decisions are organizational (many parties, individual and organizational differences, different frames or views, etc.) and analytically complex (uncertainty, dynamics, many interrelated factors, many alternatives, many criteria, etc.). Six types of elevation opportunities are identified each with a higher level of difficulty and uncertainty. Elements of decision quality are discussed with respect to the decision-making process. Framing of the problem is also discussed. Examples are provided throughout the presentation.
What Will You Learn
To help you get the most value from this session, we’ve highlighted a few key points. These takeaways capture the main ideas and practical insights from the presentation, making it easier for you to review, reflect, and apply what you’ve learned.
The speaker discusses the Theory of Constraints (TOC) and its application in strategic decision-making within organizations. The focus is on 'elevation decisions', which involve significant resource commitments and uncertainties.
The speaker presents a case study of a chemical company facing an 'elevation decision' about whether to pursue a new high-performance product. The decision involves both analytical and organizational complexity, with different parties within the organization backing different choices.
The speaker introduces a decision-making framework that includes six elements of decision quality: appropriate frame, creative and doable alternatives, meaningful and reliable information, clear values and trade-offs, logically correct reasoning, and commitment to action.
Instructor(s)
