Managerial Decision Making MGMT 530 Keller Graduate School

Managerial Decision Making (MGMT 530) Keller Graduate School of Management Fundamental & Means Objectives Decisontime ® 2012 1

Fundamental and Means Objectives � From the book, Smart Choices, Fundamental & Means Objectives are defined as follows: 1. Fundamental objectives - used to evaluate and compare alternatives. 2. Means objectives (subset of fundamental objectives) - used to generate alternatives and deepen your understanding of the decision problem. � Put another way, fundamental objectives are the “essential reasons we care about a decision, whereas means objectives are things we care about because they help us achieve the fundamental objectives. ” Quote Source: MAKING HARD DECISIONS WITH DECISIONTOOLS, Second Edition; Robert T. Clemen, Robin Dillon, Terence Reilly: Revised 2001 2

Fundamental & Means Objectives Examples Decision Problem: “What’s the best place to live? ” Means objectives in italics. Source: MAKING HARD DECISIONS WITH DECISIONTOOLS, Second Edition; Robert T. Clemen, Robin Dillon, Terence Reilly: Revised 2001 3

Fundamental & Means Objectives Examples Decision Problem: “What’s the best telescope to buy? ” Means objectives in italics. Source: MAKING HARD DECISIONS WITH DECISIONTOOLS, Second Edition; Robert T. Clemen, Robin Dillon, Terence Reilly: Revised 2001 4

Fundamental & Means Objectives Examples Decision Problem: “Where to go for dinner? Means Objectives Fundamental Objectives 1. 2. Source: MAKING HARD DECISIONS WITH DECISIONTOOLS, Second Edition; Robert T. Clemen, Robin Dillon, Terence Reilly: Revised 2001 5

Fundamental & Means Objectives Approach to Identify Objectives Source: MAKING HARD DECISIONS WITH DECISIONTOOLS, Second Edition; Robert T. Clemen, Robin Dillon, Terence Reilly: Revised 2001 6