The typical engineering department manager makes hundreds of important decisions each year. Most of them can be made an the spot, as engineering managers follow precedents or instinct when making assignments, reviewing completed tasks, planning next projects, or handling personnel matters. Such instant judgments are firmly based an managers' knowledge of what works in their companies and with their staffs. Yet, as engineers gain broader responsibilities in their organization, this "spontaneous" style of decision making must give way to a more deliberate and disciplined approach.

Why? The higher up one goes in the organization, the more the decisions are made in areas where there are no clear precedents.

In an attempt to acquaint readers with an effective procedure for making such decisions, the accompanying seven-step program, based an the recommendations of Thomas Faranda, of Faranda Associates, Phoenix, Ariz is provided. Engineering managers can use this template each time they must make a decision for which there is no known precedent.

"It's important to have a disciplined process with five to fifteen steps you follow each time you make a major decision," Faranda advises. "This way, you'11 make better choices, as well as gradually build an your skills as a decision maker."

Faranda's template can be viewed as basic but in decision making this simplicity is a virtue. As Faranda explains, "What managers need is a uniform approach to their decisions that touches all the bases and avoids any potential oversights."

Through the consistent practice and application of the seven-step program, the approach eventually will become automatic and the engineering manager will begin to feel confident in the decision-making process, even when deciding the tough ones.

The Management Decision-Making Process

1. Define the problem.

a. Find out what the problem really is.
b. Remembering the old axiom: "Nothing is as useless as the right answer to the wrong problem."
c. Defining the problem correctly takes more time at first, but saves time in the decision process.

a. Gather all possible facts surrounding the problem. Then separate relevant facts based on your definition of the problem.
b. Be fair and objective in gathering and examining the facts. Try to eliminate opinions, biases, and preconceived ideas.
c. Consider tangible and intangible factors. Tangible: time, cost, facts. Intangible: reputation, morale, personal bias.

3. Develop alternatives.

a. List all possible alternatives � routine as well as unusual. Be creative and innovative. Don't ignore routine alternatives, but don't get stuck on them either.
b. Do not try to decide if the alternative is good or bad at this point.
c. If none seem desirable, chose the one that is the least undesirable.

4. Evaluate alternatives.

a. Each should be subjected to evaluation based an these decision questions:

o Will the decision help us reach our objectives'?
o Is the decision time- and cost-effective�?
o Do we have the resources to implement the decision?
o Are there negative consequences of the decision that will haunt and hurt us later?

b. Consider the evaluation factors of risk, resources, and research.
Risk: All decisions have risk. Estimate and quantify the risk on the basis of success/failure potential (that is, 90%, 80%, 20%, 30%, 70%).
Resources: Look at the availability of your facilities, equipment, labor, time, and budget. Estimate which decision provides the "most for the least."
Research: Check past decisions and their results. Remember that every problem is somewhat different in a different time frame...even once-successful past decisions may be poor choices now.

a. Experience.
(1) A supervisor's experiences are invaluable, especially with routine or reoccurring problems.
(2) Experience can be misleading if you forget to compare current with past conditions

b. Educated guess versus gut feeling.

(1) An experienced person's educated guess is a valid decision factor, if it is based an general experience and possibly on specific experience with this type of problem or decision.
(2) Listen to your educated guess, but do not let it stop you from utilizing other decision possibilities.

c. Mental stimulation.

(1) Take your list of alternatives and isolate yourself. Assume that alternative #1 has been chosen and stimulate the results and consequences of that action. Review the positives and negatives from that decision.
(2) Do this for every alternative. Think them through. Think how be they will be received by the people above and below you.

d. Computers.

(1) Scientific decision making is now possible. Computers can store, sort, and prioritize information for easier decision making.
(2) Remember that these are tools. You are the mechanic. The decision is still yours.

e. Process of elimination.

(1) Review alternatives against these criteria:

o company policy and procedure. If the decision conflicts, consider eliminating it unless you have the position and power to allow you to bend or break the rules.
o Logic and common sense. Even creative alternatives must meet this criteria. Think about how your decision will be received by others � they should see the sense of your choice.
o Time, cost, and budget limits. If your alternative does not fit into these limitations, your choice will be a poor one.

(2) After processing, the manager has to make the decision based on the best information available and an his or her style of management, communication, and leadership.

f. Do-nothing solution.

(1) A decision to do nothing is a decision if it is arrived at by using the decision-making process.
(2) When managers fail to make a decision, they are derelict in their duty. Doing nothing is not a decision.

a. A decision must be converted into action.

(1) The selected alternatives must be executed in a manner that promotes the success of the decision.
(2) Objectives must be clear; tasks must be assigned and accepted.

b. Effective communication is the key to implementation.

(1) Communicate immediately with two groups: first, those responsible for implementation; second, those affected by the decision.
(2) Continued communication is crucial to answer questions and solve problems that arise from the decision. Make sure you are available when problems arise that need answers.

c. Get people involved and committed to the decision.

(1) If people have participated in a decision, they accept it as their own and try to ensure that it works.
(2) Committed people will cover your small errors by finding creative solutions.

7. Follow up and check results.

a. A decision is not complete unless follow-up is utilized to check up an the results and consequences.
b. Follow-up provides feedback and demonstrates the continuing cycle of the decision-making process.
c. Learn from your mistakes as well as your successes.