Decision support
A practical framework for comparing investment and operating choices without hiding uncertainty.
The question
What must be true for a proposed decision to make sense? Write down the alternatives, constraints and the date by which a decision is needed. Include the option of waiting or changing the scope.
The approach
Build a transparent model with separate assumptions and calculations. Test plausible changes in volume, margin, timing and cost. Explain the variables that matter most rather than presenting a single precise-looking forecast.
The working output
A decision memo should state the choice, assumptions, sensitivities and the information still needed. It should also name the indicators that would cause management to revisit the decision after implementation.