Decision Making Process and Uncertainty

There are many different processes and theories managers use when approaching decisions. However, these processes don’t always provide a clear answer when there is a degree of uncertainty, especially in a crisis situation.

Johnson & Johnson is known for being great at crisis management. Attached is an article outlining how J&J handled a crisis situation in 2009, which was full of uncertainty. https://www.wsj.com/articles/SB124709897531615407

The following list outlines the different approaches you can take while making decisions under uncertain circumstances.

1. Maxmin – Choose the alternative that is the “best of the worst”
2. Maximax – Choose the alternative that is the “best of the best”
3. Laplace – Choose the alternative with the best weighted payoff
4. Minimax Regret –  Choose the alternative with the best “worst regret”

How do you think managers and company’s should respond to uncertainty and crisis management. How do you think J&J handled this crisis? What would you have done differently as a manager?