PrOACT Decision Making Model

Written by promotiondept

November 11, 2018

PrOCT Decision Mking Model

The PrOCT decision mking model provides systemtic pproch for mking decisions.
It consists of eight elements tht will help you mke better decisions when ed through systemticlly.

The PrOCT decision mking model ws developed by John S. Hmmond, Rlph L. Keeney, nd Howrd Riff. They
described how to mke decision using the PrOCT model in the book Smart Choices: A Practical Guide to Making Better Decisions.

Project Mnger’s Choice

The term PrOCT is n cronym of the five core elements of the decision model…

The remining three elements help clrify decisions in voltile or evolving environments…

Let’s tke look t ech of the elements of this decision mking model.

The ft step to mking good decision is to on the right decision problem.

The wy you frme your decision problem drives everything else in the decision mking process. It determines the
lterntives you consider s well s the wy you evlute them.

good solution to well-posed decision problem is lmost lwys smrter choice thn n excellent solution to poorly posed one.”

Once you’ve frmed your decision problem, it’s time to specify your objectives.

Why is this importnt? Becuse your objectives will form the bsis for evluting your lterntives. In other
words, they become the decision criteri.

In ddition to mking sure your decision gets you where you wnt to go, objectives lso guide the decision
mking process…

In order to mke decision you need to hve lterntives to decide upon. It’s importnt to spend some time
to crete imgintive lterntives. You wnt to hve wide rnge to choose from, so don’t
limit yourself here, get cretive. Remember…

“You cn never choose n lterntive you hven’t considered.”

However, you lso wnt to mke sure the lterntives you’ve generted re good. Regrdless of how mny
lterntives you hve, your decision cn only be s good s your best lterntive.

Here re some from Smart Choices for coming up with good set of lterntives…

Once you’ve generted the lterntive open to you, you need to understnd the consequences
ech lterntive would hve for ech of your objectives.

Using consequences tble is simple nd ful wy to compre the lterntives.

When creting your consequence descriptions, it’s importnt to mke sure they re ccurte,
complete, nd precise. Otherwise, you risk mking poor choice.

Mny times, objectives will conflict with ech other. s result, you will hve to evlute trdeoffs
between the objectives. You will need to scrifice something from one objective to gin something from nother objective.

You cn begin to consider trdeoffs by rnking the lterntives for ech objective. This cn be done using
rnking tble. rnking tble is structured the sme wy s consequence tble, but insted of noting consequence
descriptions, you put ech lterntives rnk reltive to ech other for tht objective.

rnking tble will often enble you to eliminte some of the lterntives outright. In fct, it sometimes
even leds directly to the finl decision.

Since most business decisions don’t hppen in sttic environment, it’s importnt tht you clrify your
. To mke good decision you need to judge the likelihood of different outcomes nd ssess
their possible impct.

risk profile will help you cpture the key informtion bout how n uncertinty ffects
specific lterntive. risk profile will nswer these four key questions…

Often, creting the risk profiles will mke the smrt choice obvious. But some complex decisions my need
further nlysis to clrify the uncertinties. In these cses, decision tree cn help you mke
decision under uncertin conditions.

When decisions involve uncertinty, there’s lwys chnce tht the desired consequence of your decision
will differ from the ctul consequence. s result, it’s importnt tht you determine your risk tolernce.

Risk tolernce is the ex to which you re willing to risk eeriencing less fvorble consequence
in your pursuit of better consequence.

There re three steps you cn tke to incorporte risk tolernce into your decision…

Understnding your willingness to ccept risk will help you choose n lterntive with the right level of
risk for you.

The decisions you mke tody will influence the decisions you mke in the future. These re clled linked
. To mke your best decision bout wht to do tody, you need to consider linked decisions.

There re six bsic steps for nlyzing linked decisions…

Understnding how decisions re linked combined with little foresight will help you mke better choices.

The PrOCT decision mking model is n excellent frme for guiding your importnt decisions.

For more informtion, I highly recommend you get copy of the book Smart Choices. It provides excellent cse studies nd mny more decision nlysis tools tht cn help you improve your decision
mking skills

Decision Making Skills and Techniques

re criticl for business success. Lern which decision mking model is right for your sitution. The qulity of your decisions will determine your effectiveness.

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