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Decision Quality: Value Creation from Better Business Decisions, by Carl Spetzler, Hannah Winter, Jennifer Meyer
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Add value with every decision using a simple yet powerful framework
Few things are as valuable in business, and in life, as the ability to make good decisions. Can you imagine how much more rewarding your life and your business would be if every decision you made were the best it could be? Decision Quality empowers you to make the best possible choice and get more of what you truly want from every decision.
Dr. Carl Spetzler is a leader in the field of decision science and has worked with organizations across industries to improve their decision-making capabilities. He and his co-authors, all experienced consultants and educators in this field, show you how to frame a problem or opportunity, create a set of attractive alternatives, identify relevant uncertain information, clarify the values that are important in the decision, apply tools of analysis, and develop buy-in among stakeholders. Their straightforward approach is elegantly simple, yet practical and powerful. It can be applied to all types of decisions.
Our business and our personal lives are marked by a stream of decisions. Some are small. Some are large. Some are life-altering or strategic. How well we make those decisions truly matters. This book gives you a framework and thinking tools that will help you to improve the odds of getting more of what you value from every choice. You will learn:
- The six requirements for decision quality, and how to apply them
- The difference between a good decision and a good outcome
- Why a decision can only be as good as the best of the available alternatives
- Methods for making both "significant" and strategic decisions
- The mental traps that undermine decision quality and how to avoid them
- How to deal with uncertainty—a factor in every important choice
- How to judge the quality of a decision at the time you're making it
- How organizations have benefited from building quality into their decisions.
Many people are satisfied with 'good enough' when making important decisions. This book provides a method that will take you and your co-workers beyond 'good enough' to true Decision Quality.
- Sales Rank: #234161 in Books
- Published on: 2016-03-07
- Original language: English
- Number of items: 1
- Dimensions: 9.30" h x .90" w x 6.40" l, .0 pounds
- Binding: Hardcover
- 256 pages
From the Inside Flap
Few things are as valuable in business, and in life, as the ability to make good decisions. Decision Quality is here to help you make decisions that maximize value creation and manage risk— every time.
The book comes from the dynamic team of award- winning educator Carl Spetzler and his colleagues, Hannah Winter and Jennifer Meyer. This trio has helped shape the decision quality profession over the years—in the field and in the classroom. They've also worked with leaders around the world, across industries, to elevate the quality of their decisions. That same expertise is now available to you.
The framework at the heart of this book comes from the authors' decades-deep foundation in decision theory, behavioral decision sciences, and real-world practice. You'll get a reliable methodology that can be applied to all types of decisions—from business to personal, for big bets or smaller choices—regardless of your level, specialty, and industry. Every chapter unfolds with focused lessons, insights, and examples to help you navigate complex decisions.
Decision Quality enables you to:
- Avoid the most common traps that undermine decision making
- Judge the quality of your decisions more accurately, as you're making them
- Navigate today's uncertainties with confidence
- Execute on your decisions with greater buy-in and success
Join the growing group of leaders who are making decisions that create greater value—every time.
From the Back Cover
Praise for DECISION QUALITY
"No one has coached more businesses through high-stakes strategic decisions than Carl Spetzler and the team at SDG. If you're looking for wisdom on making better decisions in your business, you've come to the right place."
—CHIP & DAN HEATH, Bestselling CoAuthors including Decisive: How to Make Better Choices in Life and Work
"An excellent guide for consultants, technical experts, and program managers to achieve the most impact from their work."
—THOMAS OLAVSON, PhD, Google Inc.
"From beginning to end, this book underscores the business benefits that accrue from investing in decision quality processes. The authors offer actionable steps that leaders can take to check biases rooted in deeply held beliefs, and steer their organizations toward better value creation."
—PHILIP E. TETLOCK, PhD, Bestselling Author including Superforecasting: The Art and Science of Prediction
"A clear 'must read' for everyone in a leadership position."
—GERARD KLEISTERLEE, Chairman, Vodafone Group Plc
"Implementing the decision quality processes described in this book should become the 'new normal' for all organizations and their leaders."
—CHINA GORMAN, Former CEO, Great Place to Work Institute
"The authors deliver an approach and philosophy that can provide an immediate and positive impact on personal and business decisions. Books that achieve this in such a readable format are rare indeed—acquiring a copy could be the first in a series of quality decisions!"
—ANDREW EVANS, MBA, Unilever; Fellow, Society of Decision Professionals
"A very savvy, sorely needed systematic approach to making uncertainty an integral dimension of the questions we ask and the answers we seek. Their strategy shows you how to judge the quality of your decisions without knowing or relying on outcomes that may or may not be a reflection of the actual decision process."
—ROBERT A. BURTON, MD, Bestselling Author including On Being Certain: Believing You Are Right Even When You're Not
About the Author
CARL SPETZLER is the cofounder, chairman, and CEO of Strategic Decisions Group (SDG), a leading strategy consulting firm renowned for its expertise in strategic decision- making for greater value creation.
HANNAH WINTER is a partner, strategy consultant, and educator with SDG, where she leads the firm's 10-year education partnership with Stanford in strategic decision making.
JENNIFER MEYER leads client engagements at SDG, resulting in hundreds of millions of dollars in added value through better strategic decisions.
More at Strategic Decisions Group's website
www.sdg.com
Most helpful customer reviews
12 of 13 people found the following review helpful.
I’ll know it when I see it…maybe.
By Tom D
5 stars if you’re hiring the authors as consultants, 2 stars for the rest of us. Decision Quality is probably best for clients or students of the authors.
This book is the authors’ advocacy of their view of Decision Quality (DQ) in a decision process. DQ is basically a conceptual checklist, without any metrics, explained over 6 chapters. It is not a tutorial on any formal decision making process. It isn’t until Chapter 12 of 15 that a decision making process is introduced. Some of the same terms are used to describe both the process and the DQ chain. Best guess at the target audience for the book is senior executives who have suffered the consequences of bad decision making, don’t realize there is a body of knowledge for decision making, but think a book on DQ is what they need.
At the core of “Decision Quality,” but NOT the process, is the “DQ Chain.” (No, not that DQ). “A good decision requires quality in each of these.” They are: The Appropriate Frame; Creative Alternatives; Relevant and Reliable Information; Clear Values and Tradeoffs; Sound Reasoning; Commitment To Action. Each link in the chain is, of course, explained. For example “The decision frame answers the question” ‘What problem (or opportunity) are we addressing?’ It has three components: (1) our purpose in making the decision; (2) the scope, what will be included and excluded; and (3) our perspective including, our point of view, how we want to approach the decision, what conversations will be needed, and with whom.”
Note that both the DQ chain and explanation are notional, qualitative and that characterizes the text and the methodology. It is art, not science. So at the end of that explanatory paragraph and frequently throughout the book, the authors write something like “An appropriate frame is well suited to the situation, not too narrow and not too broad…If we get the frame wrong, we will be solving the wrong problem or addressing the opportunity in the wrong way.” That’s true, but also obvious and no help at all in being “not too narrow and not too broad.” That’s a judgement call that requires professional disciplines steeped in experience. That’s explaining “what” has to be, but NOT how to get there.
Note also that “Appropriate Frame” is used for an element in the DQ Chain, and “Frame” is an early step in the “Dialogue Decision Process” advocated in Chapter 12. Unfortunately, that “Appropriate” modifier captures the “Quality” approach in the text, summarized as “do the right things right.” Frame the issue, and do so appropriately.
The DQ Chain includes steps that are arguably not assumed, but inherently expected in any formal decision methodology; that’s part of why a formal approach is elected. “Relevant and Reliable Information” and “Sound Reasoning” are generally understood as critical to all the steps in any effective decision process. One way or another, whether practiced by decision support professionals, systems engineers, business analysts, whoever, the decision making/business case process boils down to the same steps: define the problem; identify alternative solutions; identify the “best solution,” iterate until satisfied, and finally implement or not. The devil is always in the details and the authors, at least within the text, offer no solutions to the universal problems that always emerge during the process. Making “Relevant and Reliable Information” and “Sound Reasoning” links in a “chain” may help draw attention to the fact that both are often problematic, but it does not solve that problem and it definitely obfuscates the proposed process.
“There is, however, no universal best process or set of steps to follow in making good decisions. The process has to be tailored to the situation -…” Nevertheless, the authors advocate the Dialogue Decision Process (DDP) developed by Strategic Decisions Group, their consulting company. “The DDP involves two parties; the decision board and a project team….This book uses the term decision board to emphasize the group’s ultimate ownership of the decision and its quality.” This advocacy includes an odd “Decision Maker’s Bill of Rights.” It is odd because it entitles the decision makers to that which they are responsible for creating…”Every decision maker has the right to decision quality…”
There is a whole body of knowledge under the rubric “multi-criteria decision making” that the authors have barely hinted at. The kinds of decisions that justify the expense of formal decision teams are always multi-criteria, there are always the proverbial apples and oranges to be compared and there are tools to do that effectively without the difficulty of converting everything to a monetary value. The examples in the book lean heavily on discounted cash flow analysis of all criteria and some form of “expected [cash] value” including decision trees and tornado diagrams for analysis and comparing alternatives. Again, the underlying assumption and requirement for the methodology to work is that these tools are “relevant and reliable,” much easier said than done. There are other mathematical tools that normalize the various parameters so it isn’t necessary to try to fit the different parameters into the same “cash” metric.
The authors frequently make the point that decisions are different than outcomes. A good decision may not have a good outcome; a bad decision may have a good outcome. Again, true, yours to decide if it’s relevant. Another point they push is the notion that a decision requires action, that’s the nature of a “decision.” Again, true, but hardly worth emphasizing. One example refers to a decision analysis undertaken as many as 20 times in a company, but the only decision in 19 of the cases was to do another analysis. So, did the company engage in a “decision process” or a decision analysis? Does it matter?
In the end, Decision Quality is about a marginally useful but conceptual, high level methodology. It warns of some of the execution problems, but offers no practical solutions beyond the thought that recognizing a problem is the first step to solving it. It does not address many of the broad range of analysis support tools including modeling and simulation methods and multi-criteria techniques that can indeed improve the quality of the evaluation of alternatives. The text is probably a must read if you’re hiring the authors.
Books an formal decision making tend to emphasize high level, conceptual, “soft” methods, as does Decision Quality, or are highly academic, filled with inaccessible (to most of us) mathematical concepts. If you’re really interested in the topic, consider skimming the early chapters of Clemen and Reilly’s text book Making Hard Decisions available used on Amazon for a few bucks. Although it isn’t written with a decision process in mind, if you deal with complexity in business, including complex decisions, consider Checkland’s Systems Thinking, Systems Practice.
0 of 0 people found the following review helpful.
Solid concepts, familiar concepts
By famousdavis
While I enjoyed reading this book, I think because I have an extensive business background and two graduate degrees in business, the content of this book was not especially new or even motivating for me.
The authors begin with an interesting -- arguable, even -- premise: that we are wired to "satisfice" (accept "good enough") vs. making the best choice. Why is that an "arguable" point? I come from the perspective of agile software development, where "good enough" is all that's needed (my perspective, which is something the authors talk about in their book).
The six attributes of a quality decision are helpful and useful, but it's difficult to process six attributes in a decision model for any decision except the most important and difficult. And it's difficult to gauge when you've arrived at that 100% mark on each of the "DQ Slider Scales."
The book as a nice collection of quotes, but many of them were already familiar to me, and the ones that weren't were by people I didn't know. The book says a lot of things I think I already know and believe, so it was a bit of preaching to the choir for me.
Concepts like decision trees were introduced, but it's virtually impossible to grasp decision trees without great software that can put these concepts to real-world practice. And even then, they have limited ability to really help make decisions -- so much depends on the modeler's ability to create the model, place weights and probabilities onto the model.
For an experienced, well-read business leader or manager, who has a track record of making good decision , this is probably a book to skip. For a young person starting on their career, this is an okay read, but I think there are so many other, better business books to read, this wouldn't be the one I'd put into my college-aged son's hand.
5 of 5 people found the following review helpful.
This book saves lives!
By Jeff Belkora
My patient support program has used the decision quality principles outlined in this book to guide thousands of patients through life and death decisions. Extensive research studies, including randomized controlled trials, have shown the benefits to patients. Compared to usual care, patients who use these techniques become more informed and involved in their decisions, and have better outcomes. I have also used decision quality as a leader to manage my team. It’s a cognitive framework that you can use at organizational as well as interpersonal and individual levels. No one has done more to advance the field of decision quality than Carl Spetzler and his colleagues at SDG. Decision quality is the next frontier in the quality movement. Read this book to stake your claim on the future.
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