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Strategic Decision: The Difference between Data and Good Judgment

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Strategic decision making can encourage you to stronger better paths to achieve important goals. When decisions are well thought out they can help you get closer to where you want to be while using much less effort. Understanding the difference between data and the interpretation of that data helps in seeing and then figuring out the choices that lead down varying paths. A few tips may help you think through options and make more accurate choices that help you improving business and career outcomes. Understanding the data and thinking through the options affords an opportunity to create critical thinking. Critical thinking can be defined as the objective analysis of information and options that leads to a decisive conclusion. To do this well requires that ability to see the possibilities and pick the ones that are not only most likely but also help you achieve your goals.   Step 1: Define Your Goals: Knowing your goals and what you want to accomplish might be the hardest pa

Improving Investment Decisions with Decision Making Models

Investment decisions can have a large impact on society. All investment decisions contain an inherent level of risk. This risk is associated with poor returns, loss of money, missed opportunities or even bankruptcy. Research by Wu , et. al. (2012) creates an analytical hierarchy process-group decision making model (IAHP-GDM) that works to complement group decision-making for more accurate investment decisions.  The types of risks investment managers make are related to strategy selection, social risks, policy risks, credit risks, economic risks, technology risks, interest rate fluctuation, operational risks, and contract risks (Shen, 2009; Zavadskas, et. al., 2010).   Decision-makers should seek to understand these risks and attempt to encourage the best decisions possible. This can become even more difficult when higher volumes of information create confusion.  These risks can be heightened when one person makes decisions based upon limited knowledge. In an investor’s per