In Chapter 11, Datar & Rajan (2017) outline a 5 step model for decision
making that involves both quantitative and qualitative analyses.
1. Identify the problem and uncertainties
2. Obtain information
3. Make Predictions about the future
4. Make decisions by choosing among alternatives
5. Implement the decision, evaluate performance, and learn
In my teaching career, I taught a class in metacognitive strategies where
we emphasized a 7-step planning approach. After many years, that
approach became an automatic process I use when decision making. It
has some similarities to the approach in the book.
1. What is your objective? What is the problem you are trying to
solve? (similar to book step 1)
2. List your givens (facts about your problem) (similar to book step 2)
3. What rules or constraints exist that you must follow in solving
your problem?
4. Pick a starting point and give a reason for that to be your starting
point (contains components of 3 & 4)
5. List the steps required to solve your problem (implementation
part of 5)
6. How will you check your work? How will you know that you have
successfully solved your problem? (evaluate part of 5)
7. What have you learned from your process? How can you use it in
the future or to help with other problems? (learn part of 5)
A relatively recent decision that I spent a great deal of thought on was
whether I should continue teaching or should I change careers. I
articulated my problem and gathered information, both qualitative and
quantitative, about my current employment. Initial quantitative
information included my current salary, current expenses, cost of
benefits, number of years until I would be eligible for retirement, and
number of hours worked per week. Qualitative information included
aspects of the job I enjoyed, aspects of the job that were emotionally
draining, and reflection on my mental health. Then I looked at the skills
that I possessed that were transferable to other careers and researched
possibilities. Quantitative information researched included average
entry level salaries for careers I investigated as well as the cost and time
required for additional training or schooling required to acquire
positions. Qualitative information gathered included my personal
interest and excitement about the type of roles. Basic constraints of my
problem included that I needed to be employed at a wage that would
support my family and I needed to be able to obtain employment either
with driving distance or that I could work remotely. With that
information, I chose the starting point of beginning a program in
accounting at SNHU in accounting. While I outlined a series of steps to
follow, after making the decision to start a path to leave teaching, it
became clearer to me that it would be the right choice. I ended up
leaving my teaching position ahead of the timeline I had planned and
started the job hunt before completing my program. I fortunately found
a position that will use what I am learning in my program. I’m currently
in the checking and reflective portions of the plan, but so far, I have
successfully initiated a transition to a new career.
Datar, Srikant M., Rajan, Madhav V.. (2017). Horngren's Cost Accounting:
A Managerial Emphasis, Global Edition (16th). Harlow, England: Pearson
Education Limited.
