Professional Documents
Culture Documents
Decision Making
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Suggested Ground Rules …
Brainstorm freely; disagree openly, but courteously…
it stimulates discussion & helps others ‘think aloud’!
Speak up, or you’ll be called upon to speak!
Don’t take up more than your fair share of talk time
Avoid side conversations, let all participants benefit!
Keep discussions and comments relevant
Don’t leave the room unless you have to
Don’t interrupt
Speak up with interesting & relevant ideas that will
add value
Switch off cell phones!!!
Others?
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Availability of Options
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Basic Economic Principles - 1
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Basic Economic Principles - 2
People create economic systems that
influence individual choices and
incentives.
People gain when they trade
voluntarily
People’s choices have consequences
that lie in the future
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Common Decision-Making Strategies
spontaneity
Choosing the first option that comes to mind; giving little or no
consideration to the consequences of the choice.
compliance
Going along with family, school, work, or peer expectations.
procrastination
Postponing thought and action until options are limited.
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Common Decision-Making Strategies
agonizing
Accumulating so much information that analyzing the options
becomes overwhelming.
intention
Choosing an option that will be both intellectually and
emotionally satisfying.
desire
Choosing the option that might achieve the best result,
regardless of the risk involved.
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Common Decision-Making Strategies
avoidance
Choosing the option that is most likely to avoid the worst
possible result.
security
Choosing the option that will bring some success, offend the
fewest people, and pose the least risk.
synthesis
Choosing the option that has a good chance to succeed and which
you like the best.
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T-Chart
Pros Cons
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Time Value of Money
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Time Value of Money
Yesterday Today Tomorrow
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Present Value
Future Value
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Most Powerful Formula
Fv= Pv(1+i) n
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Cost Benefit Analysis
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Things NOT desired
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Total Cost of Ownership
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Total Cost – I.T. Project
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TCO – I.T. (Server only)
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TCO
Proposed Business Incremental
3-Year Figures in 1,000s
Acquisition as Usual Differences
Total Cost of Ownership 14,256 17,258 (3,002)
Capital Expenses (CAPEX) 1,219 707 511
Operating Expenses (OPEX) 13,037 16,550 (3,513)
Net Cash Flow — — 2,981
Net Present Value @8% (NPV) — — 2,365
Internal Rate of Return (IRR) — — 121%
Return on Investment (ROI) — — 24.9%
Payback Period — — 7 months
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Internal
External
Controls
Internal
External
Controls
EXPERIENCES,
COMMENTS,
QUESTIONS.
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Syed Abdul Rafey Qadri
MBA, CIA, AM(ACAMS), EA(ACFE)
rafey.qadri@taaseer.net
(92 321) 3779015
ta a S e e r
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