Using simulation to improve the decision‐making process

Abstract All organizations face the same problem of ensuring that their decision‐making process is as effective as possible. Decision‐making techniques range greatly—from a command‐and‐control hierarchical process to a totally diffused process reflected in self‐directed work teams. How can managers determine whether they are taking the right approach, or doing the right thing? Indeed, does the “right thing” refer to short‐term or long‐term results? In most organizations, there is no real process to explore the impact of decisions over either the short or long term. As this article explains, computer simulation models can be used to enhance an organization's decision‐making process and enable it to “see” the impact of its future choices over both the short and long term.