Big Sky is a management consulting firm that specializes in strategic decision analysis, process improvement, and technology strategy.

1. Decision Analysis Framework

2. Overview Big Sky can help optimize the most important parts of a core business process – the key decisions Our approach to doing it involves four steps, which can be adopted as part of a larger process improvement effort This short briefing explains the steps and the considerations of each © Big Sky Associates, Inc. 2

3. Our Approach © Big Sky Associates, Inc. 3

4. Step 1: Define Core Capability All organizations have a relatively small number of core capabilities – those functions they must perform well Core capabilities are driven by the organization’s strategy Before any work on decision optimization can begin, those critical capabilities are identified (or validated) by our clients Big Sky can help an organization identify those capabilities if they have not already been well defined © Big Sky Associates, Inc. 4

5. Step 2: Document its Process © Big Sky Associates, Inc. 5 a b c d capability process All capabilities may be defined as a process Before optimizing decisions, Big Sky helps to document the process that creates a capability, making sure to carefully document each decision point Big Sky chooses the right approach for the process based on its complexity, and may include value stream mapping, process mapping, swimlane diagrams, or process models or simulations In many engagements, Big Sky helps a client to both optimize a process using traditional improvement techniques while simultaneously optimizing decisions in the process

7. Each decision point is treated as a critical input variable x which drives the process outcome y. The process outcome y might be customer service, quality, speed or some other capability objective

9. How to Optimize © Big Sky Associates, Inc. 8 Strategy Technique Technology After critical decisions are identified, Big Sky uses a 3-part approach to optimize each First, we assess the linkage from the decision to overall corporate strategy Second, we assess the technique used to make the decision Third, we evaluate what technology is used to support decision-making

11. Critical Decision Identification

12. Value Chain Analysis

13. Budget Analysis

14. Financial Analysis

15. Strategy Validation

17. Analytic Network Process

18. Analytic Hierarchy Process

19. Decision Trees

20. Real Options

22. Group Decision Tools

23. Context-Dependent Models

25. Lean Process Design

26. Six Sigma (DMAIC)