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PMI - Decision Making Tool

Discussion in 'Investor Resources & Tools' started by Billv, 3rd Jan, 2009.

  1. Billv

    Billv Getting there

    Joined:
    15th Jul, 2007
    Posts:
    1,796
    Location:
    Sydney, NSW
    PMI stands for 'Plus/Minus/Interesting' and is a good way of weighing the pros, cons and implications of a decision. When you have selected a course of action, it is important to check and judge if its the right decision.

    To use the technique, draw up a table with three columns headed Plus, Minus and Interesting. Within the table write down all the positive points of following the course of action, all the negatives, and all the interesting implications and possible outcomes.

    If the decision is still not obvious, you can then score the table to show the importance of individual items. The total score should show whether it is worth implementing the decision.

    Example:
    A young professional is deciding where to live.
    His question is 'Should I move to the big city?'
    Here is the attached PMI table
     

    Attached Files:

  2. Billv

    Billv Getting there

    Joined:
    15th Jul, 2007
    Posts:
    1,796
    Location:
    Sydney, NSW