This document discusses data-driven decision making and the role of emotions in decisions. It begins by introducing the topics to be covered: data creation, collation, information creation, collation, and decision making. It then discusses how data is created tactically but decisions require strategic data on options and impacts. Information technology helps integrate and filter data. Decisions inherently involve emotions as rewards and punishments shape choices even when data and options remain constant. Presenting options with emotional impacts, like consequences of inaction, can facilitate decisions. Understanding decision-makers' emotions allows effectively framing information to guide choices. Overall, the document argues decisions stem from both objective information and subjective emotions, so both must be considered to enable well-informed

1. Data Driven Decision Making
3DM
Russell Berkeley
DARBUS Ltd
Deltek Strategic Partner

2. Agenda
• Introduction
• Data Creation
• Data Collation
• Information Creation
• Information Collation
• Do I need emotions to make decisions?
• Decision Making
• Effect emotions have on decisions
• Understanding board emotions

3. INTRODUCTION

4. Data – Information - Decisions
• I have read many articles about Data Driven
Decision making, and the collective opinion is
that you create data, analyse and then make
decisions based on the dataset.
• In most of these articles they concentrate on the
data into information, and very little is written
about the actual decision making process
• This presentation will demonstrate the data into
information, but most importantly the decision
making

5. Complete model
Performing team
Analysis Data Suite
Understanding
Of Variances
Var
+ options
+ impacts
Data Creation
Data Collation
Information Creation
Information Collation
Decreasing
volume

6. Overview

7. Data Creation (Tactical)

8. Data Collation

9. Information Creation

10. Information Collation

11. Decision Making

12. Overview

13. Finance
Data
EVM
Data
Quality
Data
Risk
Data
Governance
Data Contract
Data
Schedule
Data
Performance
Data
Data sources
Other Data sources

14. DATA CREATION

15. The only purpose of Data
• The only purpose of the data generation is to
aid in the decision making process and to
speed up how long it takes for a decision to
get made.
• How can we define and support this to
happen
• However the word ‘data’ has different
meaning to tactical and strategic teams
15

16. Data Creation(Tactical)
• Typically an engineer will create tactical data
to support his preferred decision.
• He will then present this data to justify his
option. In most cases this will be a complex
and detailed collection of engineering
information.

17. Management response (Strategic)
• In many cases the management will respond
by saying.
• “I need more ‘data’ to make a decision”

18. • What the Engineer will
provide
• The engineer will further develop
any data into lower fidelity as to
the engineer this is the ‘data’
needed to justify his option
• What the decision
maker wants
• The decision maker is actually
after strategic ‘data’. This is all
the options and impact analysis
for each option.

19. DATA COLLATION

20. Gain visibility and Control Be realistic and ReliableA good plan = a Great project
Data Collation

21. INFORMATION CREATION

22. Information Creation
• Technology has evolved rapidly, and
companies like Deltek have recognised the
need for these to be integrated and have the
ability to filter to the issues that need
resolution.

23. --
Powerful Integration.
10/20/2015
Deltek, Inc. All Rights Reserved
23

24. INFORMATION COLLATION

25. Information Collation

26. Summary so far
• Data Driven Decision Making
• We have the data being collated quickly,
accurately and automatically.
• The data is integrated and filtered through the
use of effective toolset

27. DO I NEED EMOTIONS TO MAKE
DECISIONS

28. The role of emotions
• A few years ago, neuroscientist Antonio Damasio made a
groundbreaking discovery.
• He studied people with damage in the part of the brain
where emotions are generated.
• He found that they seemed normal, except that they were
not able to feel emotions. But they all had something
peculiar in common: they couldn’t make decisions.
• They could describe what they should be doing in logical
terms, yet they found it very difficult to make even simple
decisions, such as what to eat.
• With no rational way to decide, these test subjects were
unable to arrive at a decision.
Source: http://bigthink.com/experts-corner/decisions-are-emotional-not-logical-the-neuroscience-behind-
decision-making

29. DECISION MAKING

30. Why do women buy handbags?

31. Why do men buy cars?

32. Is business decision making the same
• YES!
• Although we might try and fool ourselves into
thinking that we can make decisions without
emotions, in reality we always take emotions
into consideration.

33. EFFECT EMOTIONS HAVE ON
DECISIONS

34. Decision – Do I cross this bridge?
• Data Collation
– Stable bridge
– Capable of carrying your
weight
• Information Collation
– On the ground
Decision:
Maybe as no emotion reward or
punishment

35. Decision – Do I cross this bridge?
• Data Collation
– Stable bridge
– Capable of carrying your
weight
• Information Collation
– On the ground
Decision:
Yes as positive emotional reward is
higher that negative punishment

36. Decision – Do I cross this bridge?
6 feet
• Data Collation
– Stable bridge
– Capable of carrying your
weight
• Information Collation
– 6 feet off the ground
– No wind
Decision:
Maybe as positive reward and
negative punishment same

37. Decision – Do I cross this bridge?
6 feet
• Data Collation
– Stable bridge
– Capable of carrying your
weight
• Information Collation
– 6 feet off the ground
– No wind
Decision:
Yes as positive reward greater than
negative punishment

38. Decision – Do I cross this bridge?
600 feet
• Data Collation
– Stable bridge
– Capable of carrying your
weight
• Information Collation
– 600 feet off the ground
– Small wind
Decision:
No as negative punishment is
greater than the positive reward

39. Decision – Do I cross this bridge?
600 feet
• Data Collation
– Stable bridge
– Capable of carrying your
weight
• Information Collation
– 600 feet off the ground
– Small wind
Decision:
No as negative punishment is
greater than the positive reward

40. Decision – Do I cross this bridge?
600 feet
• Data Collation
– Stable bridge
– Capable of carrying your
weight
• Information Collation
– 600 feet off the ground
– Small wind
Decision:
No as negative punishment is
greater than the positive reward

41. The data and question
• In this example neither the data or the question have
changed.
• The question is still
– “Do I cross the bridge”
• The data is still
– The bridge is stable and capable of carrying your weight
What is changing is the relationship between emotional
reward and punishment, the ‘impact’ of the decision

42. Decision – Do I cross this bridge?
600 feet
• Data Collation
– Stable bridge
– Capable of carrying your
weight
• Information Collation
– 600 feet off the ground
– Small wind
Decision:
???

43. SO WHAT!!!

44. Options (Data) and Impact (Emotions)
• In order for the management team to make
decisions, we need to ensure that they are
given information relating to the impact of
that decision.

45. Information Collation

46. Information Collation
For schedule recovery options
• Impact on costs
• Impact of critical path
For cost recovery options
• Impact on time
• Impact of critical path
Is this the only information we need?

47. Impact of a ‘Do Nothing’ decision
• Sometimes even if given the
options, and the relevant
impact the board may still not
make a decision.
• If the PM team explain the
impact on time and cost of
not making a decision, it may
increase the decision making
timescales as the impact of
‘no decision’ has been
identified
Am I safe if I
don’t move

48. Information Collation
For schedule recovery options
• Impact on costs
• Impact of critical path
For cost recovery options
• Impact on time
• Impact of critical path
For ‘Do nothing’ option
• Impact on time
• Impact of critical path
• Impact on costs

49. UNDERSTANDING BOARD
EMOTIONS

50. The PMO’s understanding of the board
• If data is expected to enable the decision
making process, then it must be presented in
the form of information that addresses the
emotional influences to which the decision
makers are being subjected.
• Otherwise the result may be in-decision, or
decisions which are difficult to rationalise
later.

51. Board Emotions

52. Conclusion
• We need to acknowledge that the board have
emotions, and these will effect the decision
making process.
• We need to acknowledge that once provided with
the impact of not making a decision ‘Do nothing’
is actually a decision and should be documented
as such
• That the Data into Information identifies the
elements where decision may need to be made,
and the options and impacts provide what
decisions could be made.

53. ANY QUESTIONS
Russell Berkeley
Darbus Ltd