All non-trivial decisions have multiple objectives, and sometimes sub-objectives. The resulting complexity opens the door to the limitations of effective decision making and the use of counter productive strategies. Structuring objectives into a hierarchy is the most effective way to manage the complexity.
Structured decision making is a general term for carefully organized analysis of problems in order to reach decisions that are focused on achieving fundamental objectives. Alternatives can be evaluated by using a reasoned approach entailing an evaluation of the relative importance of objectives, as well as an evaluation of the relative preference for the alternatives with respect to each of the objectives.1 The decision hierarchy construct may use either a strategic (top down) or tactical (bottom up) approach.1
The strategic construction of a decision hierarchy focuses first on identification and organization of objectives. The tactical approach focuses first on the alternatives - that is, identifying the pros and cons of each alternative, which will help in identifying objectives. If the decision maker(s) have a good understanding of their objectives, then a strategic approach is recommended; otherwise, a tactical approach should be used.1
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1 Forman, Ernest H. and Mary Ann Selly. Decision by Objectives: How to Convince Others That You Are Right. World Scientific Publishing Company, 2001.
