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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?