Decision Analysis Framework<br />
Overview<br />Big Sky can help optimize the most important parts of a core business process – the key decisions<br />Our a...
Our Approach<br />© Big Sky Associates, Inc.<br />3<br />
Step 1: Define Core Capability<br />All organizations have a relatively small number of core capabilities – those function...
Step 2: Document its Process<br />© Big Sky Associates, Inc.<br />5<br />a<br />b<br />c<br />d<br />capability<br />proce...
Step 3: ID Critical Decisions<br />© Big Sky Associates, Inc.<br />6<br />a<br />b<br />c<br />d<br />capability<br />proc...
Each decision point is treated as a critical input variable x which drives the process outcome y.  The process outcome y m...
The decisions that have the greatest impact on y are selected for optimization</li></li></ul><li>Step 4: Optimize Decision...
How to Optimize<br />© Big Sky Associates, Inc.<br />8<br />Strategy<br />Technique<br />Technology<br />After critical de...
© Big Sky Associates, Inc.<br />9<br />How to Optimize: Decision Strategy<br />Strategy<br />Technique<br />Technology<br ...
Critical Decision Identification
Value Chain Analysis
Budget Analysis
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How big sky optimizes decisions

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Big Sky is a management consulting firm that specializes in strategic decision analysis, process improvement, and technology strategy.

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How big sky optimizes decisions

  1. 1. Decision Analysis Framework<br />
  2. 2. Overview<br />Big Sky can help optimize the most important parts of a core business process – the key decisions<br />Our approach to doing it involves four steps, which can be adopted as part of a larger process improvement effort<br />This short briefing explains the steps and the considerations of each<br />© Big Sky Associates, Inc.<br />2<br />
  3. 3. Our Approach<br />© Big Sky Associates, Inc.<br />3<br />
  4. 4. Step 1: Define Core Capability<br />All organizations have a relatively small number of core capabilities – those functions they must perform well<br />Core capabilities are driven by the organization’s strategy<br />Before any work on decision optimization can begin, those critical capabilities are identified (or validated) by our clients<br />Big Sky can help an organization identify those capabilities if they have not already been well defined<br />© Big Sky Associates, Inc.<br />4<br />
  5. 5. Step 2: Document its Process<br />© Big Sky Associates, Inc.<br />5<br />a<br />b<br />c<br />d<br />capability<br />process<br />All capabilities may be defined as a process <br />Before optimizing decisions, Big Sky helps to document the process that creates a capability, making sure to carefully document each decision point<br />Big Sky chooses the right approach for the process based on its complexity, and may include value stream mapping, process mapping, swimlane diagrams, or process models or simulations<br />In many engagements, Big Sky helps a client to both optimize a process using traditional improvement techniques while simultaneously optimizing decisions in the process<br />
  6. 6. Step 3: ID Critical Decisions<br />© Big Sky Associates, Inc.<br />6<br />a<br />b<br />c<br />d<br />capability<br />process<br />decisions<br />d<br />c<br />b<br />a<br />critical decisions<br />c<br />a<br /><ul><li>Once the process describing the capability has been thoroughly documented, Big Sky helps to identify those decision points which are most critical to process success
  7. 7. Each decision point is treated as a critical input variable x which drives the process outcome y. The process outcome y might be customer service, quality, speed or some other capability objective
  8. 8. The decisions that have the greatest impact on y are selected for optimization</li></li></ul><li>Step 4: Optimize Decisions<br />© Big Sky Associates, Inc.<br />7<br />a<br />b<br />c<br />d<br />capability<br />process<br />decisions<br />d<br />c<br />b<br />a<br />critical decisions<br />c<br />a<br />Strategy<br />Strategy<br />optimized decisions<br />c<br />a<br />Technology<br />Technique<br />Technique<br />Technology<br />
  9. 9. How to Optimize<br />© Big Sky Associates, Inc.<br />8<br />Strategy<br />Technique<br />Technology<br />After critical decisions are identified, Big Sky uses a 3-part approach to optimize each<br />First, we assess the linkage from the decision to overall corporate strategy<br />Second, we assess the technique used to make the decision<br />Third, we evaluate what technology is used to support decision-making<br />
  10. 10. © Big Sky Associates, Inc.<br />9<br />How to Optimize: Decision Strategy<br />Strategy<br />Technique<br />Technology<br />THE ANGLE: Decisions start with a purpose. Big Sky helps clarify how a decision ties to strategy in specific, measurable terms. <br />METHODS:<br /><ul><li>Capability Analysis
  11. 11. Critical Decision Identification
  12. 12. Value Chain Analysis
  13. 13. Budget Analysis
  14. 14. Financial Analysis
  15. 15. Strategy Validation
  16. 16. Organization Analysis</li></li></ul><li>© Big Sky Associates, Inc.<br />10<br />How to Optimize: Technique<br />Strategy<br />Technique<br />Technology<br />THE ANGLE: A good carpenter chooses the right tool for the job. Big Sky helps select the right decision tool for your situation, regardless of whether it’s a complex recurring supply chain problem or a one-time strategic choice. <br />METHODS:<br /><ul><li>Hypothesis testing
  17. 17. Analytic Network Process
  18. 18. Analytic Hierarchy Process
  19. 19. Decision Trees
  20. 20. Real Options
  21. 21. Group Consensus</li></li></ul><li>© Big Sky Associates, Inc.<br />11<br />How to Optimize: Decision Technology<br />Strategy<br />Technique<br />Technology<br />THE ANGLE: Good decisions result from a qualified decision maker armed with the right information, delivered at the right time in the right context. Big Sky helps define an architecture optimized for effective decision-making. <br />METHODS:<br /><ul><li>Business Intelligence
  22. 22. Group Decision Tools
  23. 23. Context-Dependent Models
  24. 24. Visual Control Tools</li></li></ul><li>© Big Sky Associates, Inc.<br />12<br />Making decisions stick<br />Strategy<br />Technique<br />Technology<br />Finally, Big Sky makes change last by compressing decision cycle time (DCT), reducing decision error, and reducing decision waste. By applying lean, six sigma, and process improvement techniques and principles, Big Sky helps make lasting, measurable change in decision fundamentals. <br />METHODS:<br /><ul><li>BPR/Process Improvement
  25. 25. Lean Process Design
  26. 26. Six Sigma (DMAIC)
  27. 27. Rapid Decision Improvement</li></li></ul><li>© Big Sky Associates, Inc.<br />13<br />

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