Think forward and try to predict the possible outcome of each action on your stakeholders. Don’t forget to consider the ethics of each alternative. Be sure to compare alternatives to the objectives and criteria set in step 2 of the decision-making process. In addition, compare each alternative to the others. This section presents quantitative and qualitative approaches that are commonly used to analyze alternative solutions: quantitative techniques, big data, and cost-benefit analysis and intuition.

One of the five approaches is management science, which uses math to aid in problem solving and decision making. Quantitative techniques professionalize decision making by using math in the objective analysis of alternative solutions. Break-even analysis allows calculation of the volume of sales or revenue that will result in a profit. The break-even point occurs at the level at which no profit or loss results.

Capital budgeting is used for make-or-buy, fix-or-replace, upgrade-replacement, and rent lease-or-buy decisions. Another approach computes the average rate of return. It is appropriate when the yearly returns differ. Queuing theory focuses on waiting time. An organization can have any number of employees providing service to customers. Probability theory enables the user to make decisions that take into consideration conditions of risk. You assign a probability of success or failure to each alternative. Then you calculate the expected value.

Big data is the analysis of large amounts of quantified facts to aid in maximizing decision making. The quantitative analysis is commonly done through algorithms and their related sophisticated software. Decision making is not simple trust data-versus-gut decisions. Quantitative techniques including big data are objective mathematical approaches to comparing alternatives.