AIM-IRS Annual Business Meeting & Training Seminar Decision Making and Problem Solving

Decision Making & Problem Solving Perspective: Should you "take the initiative”? When to bring a decision to your boss, and when to handle it yourself. A good decision now is better than a great decision later! Find out how to attack "decision fear" in yourself and others.

Decision Making & Problem Solving Introduction Basics – Decision making – Completed staff work

Decision Making & Problem Solving Decision making –Outcome –Course of action Produces a final choice Output – Action or – Opinion

Decision Making & Problem Solving Decision Making Techniques Listing Random or coincidence Accepting the first option Forms of divination Acquiesce Highest probability

Decision Making & Problem Solving Tool for Decision Making Risk Management

Decision Making & Problem Solving Risk Management What could go wrong? = Risk How likely is it? = Probability How bad is it? = Impact What can be done to prevent it from happening? = Mitigation Plan

Decision Making & Problem Solving Risk Statement  “If” – A condition that describes the situation or circumstances  “Then” – Consequence of the condition or circumstance

Decision Making & Problem Solving Risk Probability – general guidelines  “Low” – Probability of the risk occurring is less than 25%  “Medium” – Probability of the risk occurring is greater than 25% and less than 75%  “High” – Probability of the risk occurring is greater than 100%

Decision Making & Problem Solving Risk Impact – Assessment of the overall impact of the condition, considers multiple factors such as cost, schedule, performance, etc.  “Low” – Low or no impact to all factors  “Medium” – Medium impact to some or all factors  “High” – High impact to some or all factors

Decision Making & Problem Solving Risk Mitigation – What is done with the risk?  Transfer  Assume  Control  Avoid

Decision Making & Problem Solving Risk Assessment – Review all the risks for probability, impact and mitigation RiskProbabilityImpactMitigationOverall Risk 1MediumLowAssumeLow Risk 2MediumHighAvoidHigh

Decision Making & Problem Solving Risk Management Summary Risk Based Decision – What course of action is selected based on the risk assessment?  Do we choose to accept the probable impact of the risk with the appropriate mitigations?  Are there alternatives that provide a similar outcome with lower probable impacts?  Is this a rational decision?  Is this the best decision?

Decision Making & Problem Solving Executive Expectation: Completed staff work

Decision Making & Problem Solving The Doctrine of Completed Staff Work Completed staff work: –Study of a problem, and –Presentation of a solution Note: Completed action so that the boss may indicate approval or disapproval.

Decision Making & Problem Solving Your duty is to work out the details. Do consult other staff members. Worked out product in a finished form. Resist the impulse to ask the boss.

Decision Making & Problem Solving Boss Needs answers Does not need questions Approves or disapproves Your job Study Write Re-study Re-write Deliver a proposed product

Decision Making & Problem Solving Tips Avoid long explanations. A memo to your boss is not completed staff work. Writing a memo for your boss to send to someone else is. Your finished document should simply require the boss’s signature.

Decision Making & Problem Solving Rough Drafts Are okay to have Must be fully developed ideas Are not be an excuse for shifting responsibility to the boss

Decision Making & Problem Solving Final Test If you were the boss, would you be willing to sign the paper you have prepared, and stake your professional reputation on it being right? If the answer is no, take it back and work it over, because it is not yet completed staff work. Remember, the boss isn’t the editor, make sure the memo is 100% “good to go”, no typos, proper English, etc.

Decision Making & Problem Solving Completed Staff Work Summary Make the decision to solve the problem and present your recommendations to your boss in the form of completed staff work.

Decision Making & Problem Solving IRS Strategic Plan

Decision Making & Problem Solving IRS Strategic Plan  Goal 1: Improve service to make voluntary compliance easier  Goal 2: Enforce the law to ensure everyone meets their obligation to pay taxes  Strategic Foundations: Invest for high performance Are the decisions we’re making supporting the Strategic Plan?

Decision Making & Problem Solving IRS Values  Honesty and Integrity  Respect  Continuous Improvement  Inclusion  Openness and Collaboration  Personal Accountability Are the decisions we’re making in line with the IRS Values?

Decision Making & Problem Solving Summary  Take the initiative to make a decision  Know the facts  Clearly articulate the issues  Finally – Recommend a course of action!