Decision Process
The decision process is the route to a decision: the route to a technical decision, the route to money and the route to paper.
While the decision criteria are all about what the decision is based on, the Decision Process (Dp) is about the route to it.
We primarily separate this process into the route to a technical decision (Technical Decision Making), the route to money (Business Decision Making) and the route to paper (Paper Process).
Technical Decision Making (TDM)
Based on the technical decision criteria (TDC), companies set up formal or informal processes that lead to a technical decision. It is important to understand what these steps are and who is involved in them.
Like the decision criteria, this process should also be documented and confirmed by the client.
Business Decision Making (BDM)
- Who needs to approve?
- Are there any formal boards?
- Is there a formal process in a project approval workflow, or paper forms?
- How long does this usually take?
Paper Process (PP)
Rigorous regulatory or business compliance needs often lead to time-intensive negotiations. These can take weeks or even months, but they are necessary to reach a legal agreement.
This process is the number one reason why contracts get postponed and deals slip out of a quarter. Make sure you have executive sponsorship to give negotiations with Purchasing and Legal the right focus, the right time and the right resources. Be paranoid about the details!
Questions to ask
- Which people are involved, and what are the steps to reach the decision?
- How is this put in sequential order, and on which timeline is it based?
- What does the approval process look like for $100K, $500K or $1 million?
- Paper: How is the legal construct set up? Are there frame agreements in place? What are the critical mandatory terms and conditions? Which contractual paperwork is the basis of negotiation?
Go deeper on Decision Process
The route to a decision: technical, the route to money and the route to paper.