Our approach

Decision analysis is the science of finding the most effective way to evaluate key aspects of a given decision situation and aid decision makers in arriving at a set of recommended actions. The field of decision analysis has a long history and the methodology is well founded within economic theory.

At DecisionNodes we specialise in decision analysis and strategic decision making - to create long-term value for our clients and transform the way they solve complex decision problems.

Work model


From requirements and analysis
to action plan
Requirements
When faced with problems that are atypical, or where many decisions are interlinked over time, benefits can be gained from using a framework to structure elements and calculate the expected value and uncertainty for the available alternatives. Together with our customers we evaluate the problem, clarify needs, roles and ambitions for analysis to be performed.
Information gathering
A typical workflow begins with identifying all factors that must be taken into account in the work. This could include market trends, competitor analysis, organisational strengths and weaknesses, opportunities and threats, and strategic visions and goals. Such a mapping process provides a comprehensive issue list that forms the basis for further work.
Opportunity space
Based on the issue list from the information gathering, the most important decisions and uncertainties are identified. This is systemised so that various alternative strategies can be modelled, analysed and compared in terms of economic potential, uncertainty, time and capital needs.
Analysis
The analysis considers various aspects of the decision situation with the objective of reaching an overall recommendation. The analysis is almost always interdisciplinary, where data from different disciplines must be coordinated to provide the necessary insight into the decision situation. Good cooperation is essential to understand important connections and to benefit from the collective expertise and experience of the participants.
Value
Discounted cash flow is the general method of economic valuation, and investment decisions are typically taken on this basis. For smaller organisations the development and uncertainty of cash flows can be of vital importance, and other profitability indicators may be relevant depending on the type of decision. A simplified valuation may also be necessary, especially in projects with particularly high uncertainties, limited data basis or little time for evaluation.
Action plan
The process results in a decision proposal and an action plan, in which the participants’ contribution to ensure success in implementation is specified. As new information becomes available, models and analyses are updated and the action plan revised. This ensures that the right decisions will be taken throughout a project or implementation process, where uncertainties are handled in a proper manner.

Value creation


Creating value in
the early phase

Despite a project’s uniqueness a large part of the value creation often happens in the early phase where owners, sponsors and other parties commit, support and contribute to mutual success.

Effective 
execution

A good decision basis increases the likelihood that the right choices are made and facilitates effective execution where risks and uncertainties can be handled in a proper way.

Structured
approach

DecisionNodes helps to structure the path towards a good decision basis and high quality decisions. We act as the project’s facilitator and analytical arm.

Good decisions


INTUITION + ANALYSIS + EXPERIENCE

Decisions based on intuition and experience alone can rarely be trusted when:

The problem situation differ from what is typical
Many decisions are interlinked over time
Predictions about the future are highly uncertain

GOOD DECISIONS

depend on:

Proper modelling and handling of relevant uncertainties
Seeing decisions in relation to each other
Utilising a suitable framework

DANGER SIGNALS

you need to take serious:

When even bigger decisions are taken on intuition
Unstructured strategy discussions or absence of alternatives
You often unveil disturbing issues in the aftermath

Building capabilities


The use of decision analysis has grown rapidly in recent years. However, adoption of decision analysis as an approach to problem solving is not always straightforward and some form of decision analysis implementation program is often required. To develop such a program a status of the organisation’s current decision-analysis capabilities is required. 

In its simplest form, each dimension in the figure is evaluated on a scale from 0 - 100% on the extent to which they match the description of their own business. A combination of high score in the left part of the figure (big need) with a low score in the right part (low competence) can constitute a particularly high risk game in the long run with loss of competitiveness, margins and position in the market.

Survey


Take our quick survey and get an indication of YOUR organisation’s current decision-making capabilities.

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Decision
Nodes

We are a small and focused management consulting company. Decision analysis and cross discipline collaboration have been key cornerstones throughout our careers. We have seen how improper analysis can lead projects astray, but we have also experienced how a structured approach to decisions, risks and uncertainties can contribute to sustainable growth for an entreprise. We deliver the ability to tackle and solve challenging decision situations and engage our clients in exploiting their full value potential.