Strategizing the Future

Making Good Management Decisions

Decision Making Defined

Making a choice between two or more alternatives

Problem-solving decisions… made to solve existing or anticipated problems

Opportunistic decisions… made to advance accomplishment of a program or project’s desired results

Involving Others in Decision Making

Autocratic (I) – Managers make decisions alone Autocratic (II) – Managers obtain information from

others but make decisions alone Consultative (I) – Managers exchange information

with relevant participants individually but makes the final decision

Consultative (II) – Managers exchange information with relevant participants as a group but makes the final decision

Group (II) – Managers exchange information with relevant participants as a group and work with the group to reach a consensus decision

Defining the problem or opportunity stimulating the need for a decision

Develop relevant alternatives

Assess the alternatives

Choose an alternative

Implement the decision

Evaluate the decision and make necessary follow-up decisions

Becoming aware that a decision is needed

Feedback

The Decision-Making Process

Using Data to Inform Decision-Making

Data for decision-making presentation

Assessing Alternatives and Evaluating Decisions Based on Cost

Cost-benefit analysis– Define costs– Assign a value to those costs– Define benefits– Assign a value to those benefits

Cost-benefit ratio (Z) =

Compare ratio of current to ratio of alternative

value of benefits

value of costs

Cost-Benefit Activity (Hypothetical)

Project: Work with medical personnel and a nursing case management team to follow best practices for the use of Proton Pump Inhibitors (PPI) in the treatment of Gastric Reflux (GERD)

Background

Currently 10% of the 15,000 employee workforce are being treated with PPIs

Current practice (based on claims analysis): – Visit to doctor results in 12 month Rx for PPI– Patient fills Rx for all 12 months– Approximate cost for a 1 month supply (30 pills) of 10 mg

pills is $200 Evidence-based practice:

– 14 days of combined PPI (can use over the counter) and antibiotic ($180 for 2 weeks)

– 8-10 weeks of additional PPI treatment (again, can be OTC)– Note… 10 mg OTC costs $.80/day

Compare…

What is the cost of the current treatment for one year? What is the cost of the evidence-based treatment plan? Data suggests that if the evidence-based 12-week treatment

plan isn’t effective in treating GERD, then treatment other than use of a PPI should be considered; however, most often the treatment is successful and additional treatment is not needed.

What would be the cost-benefit ratio for the current treatment as compared to the evidence-based treatment if the value of the benefit remained constant?

What would be the cost-savings if all 10% of your population were successfully switched?

Websites to View

CDC: Healthy Worksite Initiative http://www.cdc.gov/nccdphp/dnpa/hwi/

Marketing Professionals and Professors http://www.marketingprofs.com

Wellness Councils of America http://www.welcoa.com

Designing a Website…

You have been asked to design a website for the local wellness council. A site that would lead “Wellness Leaders” in your community to key resources that can help them develop workplace wellness programs.

What would your ideal website contain? Why?