Satisfying constituencies ....
Corporate decisions take place in a multi-constituency environments where outcomes affect a large range of interested parties including the individual decision-maker, shareholders, customers and regulatory authorities; decisions, by their nature, are complex.
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Constituency benefits
Most corporate decisions take place in complex multi-constituency environments. It might be possible to identify a specific individual who is responsible for decision-making, however, any decision analysis applied takes place within an environment where the outcomes of decisions can be compared with the preferences of several different constituencies each of which are affected by the outcomes of decisions, the most obvious being:
- shareholders
- board
- management
- task teams
- workforce
- suppliers
- customers
- regulatory & legal authorities
- accountancy & audit authorities
- government revenue agencies
- professional practice bodies
An important output from a well-structured online decision analysis system is transparent reporting and documentation explaining and justifying any decisions taken. These can provide a description of the factors taken into account, the models applied and use of the best available information. The comparison of decisions with outcomes has an important role in assessing the quality of decisions by gaining a better understanding of how decision models reflect operational outcomes. This information can be of vital strategic importance to a company in enhancing decision quality and competitive status in the market.
The accumulation of considerable decision analysis data and information and its ability to generate transparent reports in real time online is of importance in providing all constituencies involved with an adequate understanding as to why certain decisions were taken. Such access to objective data is of fundamental importance not only in strengthening the foundation of manageemnt decisions but also improves the quality of reporting to regulatory, legal, accountancy, audit, revenue and professional practice associations, authorities and agencies. This transparency has an important impact on corporate work ethic, professionalism and indeed the spirit of teams all operating in the knowledge that their actions take place as a result of their taking the best decisions based upon the available information.
Occasionally good decisions can result in unexpected outcomes. Under such circumstances decision analysis sustains a sound professional ethic and helps avoid the destructive impacts of recriminations but diverts attention to a more dispassionate analysis of the cause of such disparities, driven forwards by an objective focus which can sustain team initiative.
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