Evaluate Alternatives
Based on the alternatives provided, evaluate the implications of the alternatives considered. Give some thought to implementation strategies and long term outcomes. How do you suppose the stakeholders will react to the alternatives?
This step involves evaluating the alternatives against the end-state goals. This process can include assignment of a score or rating to each solution for each of the goals, or it can simply be a thoughtful analysis of the pros and cons of the solutions against each goal.
This process is answering the question, “Will the alternative solve the problem as defined by the desired end state and end-state goals?” Based on this assessment or rating, the number of possible solutions can be narrowed down to two or three, on which to do the risk assessment..
Evaluating the alternatives requires a systematic approach of considering each alternative solution. One evaluates each solution against the end-state goals and either lists the pros and cons or assigns a score. A score may be either a number (e.g., 1, 2, 3, 4, or 5) or a descriptive assessment of how well it meets the goals (e.g., high, medium, low, or not at all). The scores are then added up and used to identify the top two or three solutions for the next step of risk assessment. You should include a matrix showing the assessment of the alternatives against the goals. The assessment may be numerical or stated. Be sure to evaluate your alternatives in light of the results of your data and your literature review and benchmarking.
Identify and Assess Risks
Identify and analyze the risks. You should consider the implementation strategies and long term implications of your decision, including the costs, support from stakeholders, and potential problems.
Once the two or three best solutions have been identified, it is important to do a risk assessment. This assessment can be used to rule out a solution that might have too high a risk. It is also used to identify potential risks of the possible two or three solutions and identify ways to address or mitigate the risks. The most important part of this step is to simply ask the right questions: What are the potential negative risks to the business? What are the potential positive risks to the business? What are the potential personal risks (positive and negative)? How much business risk and personal risk can we tolerate? Based on these questions and the magnitude of the decision and the resources to be invested, you may want to do a qualitative or quantitative analysis. The analysis process shown below is a qualitative one focused on negative consequences to the business. A similar analysis can be done to include positive or upside risks. A separate analysis should be done if there are personal risks.
In this step, the two or three possible solutions are each evaluated to identify potential risks and negative consequences. If the risks or negative consequences are severe enough, a solution might be eliminated from consideration. For the solutions that remain, the following question is then asked: How do we address or mitigate these risks? Tactics are identified to address potential risks. The output from this step is a matrix showing the risk assessment of the alternatives. If an alternative is eliminated because the risks are too high, the rationale should be documented.
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