PMI Analysis
Purpose: Use this job aid to help you conduct a PMI analysis to evaluate a business decision.
| PMI Analysis Step | Tips |
|---|---|
| List the "pluses" of the decision. | Pluses are any prospective advantages or gains you expect to receive shortly after implementing the business decision in question. Rate each plus on a scale from +1 to +5. A score of +1 signifies a negligible advantage, while a score of +5 represents a strong, much-desired benefit. |
| List the "minuses" of the decision. | Any potential near-term drawback or liability associated with your proposed business decision represents a minus in your PMI analysis. You score minuses on a scale from a relatively inconsequential -1 to a catastrophic -5. |
| List the "interesting" aspects of the decision. | Interesting aspects are the extended implications of taking any business action. They can either be pluses or minuses in your analysis. |
| Analyze the results. | Tally the final score by totaling the scores of the pluses, minuses, and interesting aspects. Use the same rating scale as above to determine the strength of your endorsement of the potential decision. For example, if a decision receives a final score of -4, you should be skeptical about its likelihood for success. Your skepticism should wane as final scores approach zero. On the other hand, if the potential decision rates a +4, your confidence in its success should be high. Your confidence should wane as scores approach zero. |
Course: Making Decisions Dynamically
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