Decision analysis (a term coined by SDG founder Ronald A. Howard) is a quantitative method that explicitly combines distinct alternatives, appropriate information, uncertain outcomes, and clear preferences to help decision-makers achieve clarity of action. SDG’s consulting practice was founded on this discipline and its applications to real-world problems. It remains the foundation of our work, informing our methods across all practices – in contrast to other consulting organizations, where it is offered as a small, more isolated specialty.
Decision analysis offers a structured way of breaking down a problem into manageable parts and explicitly considering all available courses of action. It applies logical reasoning to incorporate knowledge about the uncertain or chance events that can affect the outcome. By systematically evaluating the implications of their decisions, decision-makers can clarify their actions, understanding what they should do, even when the outcome cannot yet be known.
Having applied this practice during the course of literally thousands of engagements, SDG consultants remain on the forefront of professional decision analysis and its application to complex organizational transformations. We continue to invest heavily to research in this field, while our efforts and expertise are often fundamental to turning its theories into successful practice.