Identifying the Importance of the Decision
It is crucial to evaluate factors besides efficiency before making a cost-demanding decision. In this case, the decision to install a new project management software should be evaluated more. Decision-making is about finding a solution to a problem or a goal for a task. For decision-making, it is important to categorize and standardize decisions (Bai et al., 2019). The first way to evaluate the decision is by questioning its importance. The assertiveness of decision-making depends on a very simple thing, but at the same time, it is extremely complicated, knowing its benefits. It may seem impossible at first glance, but analyzing what should happen from a certain choice becomes quite concrete and enlightening (Baiyere et al., 2020). Evaluating why the decision is important revolves around questioning the need and the time. In this sense, the company should question its survivability with or without the software.
The company should also question if the time of purchase is right for the company. A problem formulation may already contain solution and goal ideas. However, the decision maker must specify the goals first to receive enough information for solutions, alternatives, and evaluations. This step in a decision is to identify the problem or opportunity and measure its urgency to solve it, the severity or impact it may have on the company, and assess improvement or worsening in the long term (Bai et al., 2019). The management should be responsible for identifying bottlenecks and failures that need attention to resolve (Baiyere et al., 2020). In addition to the usual solutions, such as team expansion or the creation of new functions that come with the software, should be in consideration.
Identifying the Main Beneficiaries from the Decision
Before deciding, the company should know who would benefit from the decision. Thus, all the shareholders who can benefit from the software are listed to know how effective the change would be. Here, the process participants formulate a problem that requires a decision. The problem can be formulated immediately and directly, but it requires a search process. It thus forms the basis of the decision-making process by including the benefactors in the decision-making process (Shrestha et al., 2019). The change’s effect is consequential; thus, clearly understanding how the shareholders benefit is crucial. When making decisions, the people involved in the process collect and process a wide range of information, carefully weighing the alternatives and considering any risks (Shrestha et al., 2019). This step can consist of brainstorming with a team of leaders from different operations that will be directly or indirectly linked to the choice of the solution. It is done to gather even more information and advantages, in addition to the gains and losses with each choice.
Acknowledging the Cost of Reversing the Decision
There are various risks that a company is predisposed to when it reverses a significant decision. In this case, if the implementation of expensive project management software decisions is reversed, the company will likely encounter uncertainties, conflicts during the designation of resources, lack of collaboration, and even friction (Umar & Zhanfang, 2019). Since the software aims to improve the project’s efficiency, communications and other software-dependent operations will be streamlined (Umar & Zhanfang, 2019). However, if the decision is not adopted, the insurance firm risks facing poor communication between managers and the staff, which might break the rules (Calabrese et al., 2019). Additionally, failing to introduce the software in the organization can predispose the insurance firm to poor allocation of budgets, supplies, and equipment, which support the firm’s running. While uncertainties and resources seem integral, there is also a high probability that the firm will host poor teamwork since the target software aims to improve working relationships and camaraderie. Generally, failure to incorporate the manager’s decision exposes the firm to communication and team failure.
Identifying the Best for the Organization
Before this decision can be implemented, it is essential to identify the best option for the business compared to the leader’s needs. In most cases, a leader might decide since it is their prerequisite obligation. In this scenario, it is essential to determine whether the manager’s decision is based on the organization’s crucial needs or roles. This determination can be achieved by identifying the problematic points that stalls the firm’s progress, such as communication barriers, poor coordination of tasks, and poor resource allocation. If the decision can provide the solution to these issues, then the decision would be a viable option for the firm to consider (Calabrese et al., 2019). Additionally, the decision will result in more long-term gains than short-term pain and prevent the likelihood of reorganization if key concerns such as miscommunication are handled. Besides, identifying what is best for the organization supports the manager’s reputation as the insurance firm would not wish to adopt a decision prematurely, which could illuminate their ability to be an honest broker.
Reference
Bai, C., Kusi-Sarpong, S., Badri Ahmadi, H., & Sarkis, J. (2019). Social sustainable supplier evaluation and selection: a group decision-support approach. International Journal of Production Research, 57(22), 7046-7067. Web.
Baiyere, A., Salmela, H., & Tapanainen, T. (2020). Digital transformation and the new logics of business process management. European Journal of Information Systems, 29(3), 238-259. Web.
Calabrese, A., Costa, R., Levialdi, N., & Menichini, T. (2019). Integrating sustainability into strategic decision-making: A fuzzy AHP method for the selection of relevant sustainability issues. Technological Forecasting and Social Change, 139, 155-168. Web.
Shrestha, Y. R., Ben-Menahem, S. M., & Von Krogh, G. (2019). Organizational decision-making structures in the age of artificial intelligence. California Management Review, 61(4), 66-83. Web.
Umar, M. A., & Zhanfang, C. (2019). A study of automated software testing: Automation tools and frameworks. International Journal of Computer Science Engineering (IJCSE), 6, 217-225. Web.