Decision modeling/representation describes the use of data and logic to clarify the specific nature of a situation for which assistance in the decision-making process may be needed. The hope is that in clarifying such details, the development of meaningful suggestions and solutions may be easier to create.

Most management problems for which decisions are sought can be represented by three standard elements – objectives, decision variables, and constraints.

1. Objective

2. Maximize profit

3. Provide earliest entry into market

4. Minimize employee discomfort/turnover

5. Decision variables

6. Determine what price to use

7. Determine length of time tests should be run on a new product/service

8. Determine the responsibilities to assign to each worker

9. Constraints

10. Can't charge below cost

11. Test enough to meet minimum safety regulations

12. Ensure responsibilities are at most shared by two workers

All of these elements can be visualized graphically often to the benefit of analysis and general insights. Our initial discussion will be limited to objectives and decision variables; we'll discuss constraints later on in this chapter.

In most business scenarios, managers are faced with making a set of decisions that impact a final outcome (objective). This tends to make the decision process more complex, and sometimes the rationale for making specific decisions are difficult to describe.

Value of data visualization

As the old saying goes, a picture is worth a thousand words (Figure 4.1).

Some pictures are cute, but may say very little to professionals – at least not initially.

Misleading suggestions can throw a decision maker off his or her game.