Operational decisions are often overlooked in organisations, and are seen as part of the processes of the company.
When trying to improve the operational workings of the organisation, we need to start looking at decisions separately, instead of having them intertwined in the organisation’s process management or even in its process modeling.
Decision management can help us untangle our decisions from our processes.
But why should we start looking at the key operational decisions of our firm separately?
Behind each decision, there are a ton of rules and logic to follow. For example:
- an insurance company has a list of internal rules to decide whether to insure a person or not.
- a large organisation can have workers under different labour agreements and shifts which makes calculating the salary incredibly complex.
- a firm exporting goods might need to follow different rules per country and will adjust the price according to the cost of exporting.
All of the situations mentioned above are decisions the company takes frequently, and which have a direct impact on the profitability and reputation of the company. A mistake in pricing or insuring someone you otherwise would not insure can lead to a decrease in profit, while frequent mistakes in salaries of your workers can affect your reputation.
The direct impact these decisions have on the performance and turnover of your organisations makes them incredibly important, and making the right decision every time you have to go through the decision process is vital.
But these decisions can be very complex and difficult to understand, especially if they are based on laws and regulations you need to comply with. So what do we need to make sure we make the correct decision? A clear overview of the rules we are subject to and the business logic of our organisation.
That’s where decision management comes in.
At Avola Decision, we practice decision management through decision modeling. We’ve created a platform that allows you to map out the logic and rules behind your decisions in an manner that is intuitive and easy to understand. The business can focus on structuring the rules and regulations to follow in decision models, while IT can integrate the execution of said models in own software. Through decision management and modeling, we ensure that we are aware of the rules and logic we need to follow, that decisions are taken quickly and correctly, and that the decisions taken can always be traced back to the rules they were based on.