Issue link: https://epubs.iltanet.org/i/7694
www.iltanet.org The Business of Law 45 successful businesses are built on good decisions would be willing to "trade" to meet the software cost objective more easily. If you would be willing to spend a lot of resource time (the two points needed to modify the score to 1) in order to have even just a slightly better software cost (one point's worth), then for Option B, decrease the resource time score to 1, and simultaneously increase the software cost score to 4. Now you have the following chart: Option A Option B Software Cost 5 4 Resource Time 1 1 Now, since Options A and B have the same score • for resource time, you can cross that objective off the list. Compare the two alternatives on software cost only, and you have a clear winner — Option A with the higher score of 5. Option A Option B Software Cost 5 4 Resource Time 1 1 unCerTainTieS, riSk ToLeranCe anD LinkeD DeCiSionS After analyzing your decision using the PrOACT approach, there are still three additional elements that can be highly relevant to a decision-making process: future uncertainties, your risk tolerance and linked decisions. When uncertain future events will determine whether a decision you make today is right or wrong, the key is to dissociate consequences from decisions. Since it is impossible to know the future, making a good decision is about choosing intelligently with the information you know at that time. Future events that transpire cannot undo the soundness of a choice made without knowledge of those future events. Nevertheless, you often need to take the possibility of future events into account when making a decision. To do that, create a risk profile for each alternative, identifying: (1) the key uncertainties, (2) the possible outcomes of those uncertainties, (3) the chances of occurrence of each outcome and (4) the consequences of each outcome. Whenever uncertainties exist — possible consequences that are either unknown or simply out of your control — you need to determine your or your organization's tolerance for risk before proceeding. After evaluating the level of risk you are willing to accept, you can apply that to the risk profiles of the alternatives to help you decide which alternatives are viable. Finally, whenever you are making a decision, you must identify any related, or "linked," decisions that will be triggered or altered by your choice in the first decision. Recognize how your choice in Decision 1 will modify the alternatives available to you in Decision 2. And, after you make Decision 1 and it comes time to make Decision 2, be sure to reevaluate the Decision 2 alternatives and their risk profiles in light of your new information (the now known outcome of Decision 1). Making SMarT ChoiCeS Decision making is like any other skill – it can be learned. "Smart Choices" offers an insightful and