Core idea: A decision record preserves why a choice was made using the information available at the time.
When this model is useful
Use it for material decisions that may be reviewed, handed to another person or affected by changing assumptions.
The method is most useful when the question, alternatives and time horizon are stated before calculations begin. It should clarify tradeoffs and identify which assumptions deserve attention, not merely produce a score.
Inputs and evidence
Decision question, owner, date, alternatives, constraints, evidence, assumptions, selected option, rationale, risks, controls and review triggers.
Use consistent units, definitions and periods across options. Mark estimates clearly, record their source and use ranges when precision is not supported. Evidence should be proportionate to the cost, risk and reversibility of the choice.
Step-by-step method
Summarize the choice and rejected alternatives, separate evidence from assumptions, explain accepted tradeoffs and define the conditions that require reconsideration.
- Write the decision question and accountable owner.
- List realistic alternatives and eliminate any that fail hard constraints.
- Collect evidence and separate verified facts from assumptions.
- Run a base case and at least one downside test.
- Record the chosen option, accepted tradeoffs and review triggers.
Practical example
A record may state that Option B was selected despite higher cost because it met reliability and implementation constraints, with review if volume remains below a defined threshold.
The point of the example is not the exact numbers. It is the discipline of using the same boundaries for every option and making the decision drivers visible.
Common mistake and limitation
Do not rewrite the original rationale after results are known. Add an outcome review while preserving the information available at decision time.
Review whether the result changes under reasonable alternative assumptions. A close or fragile ranking should be presented as such rather than converted into false certainty.
Questions to ask before deciding
- What evidence would change the preferred option?
- Which consequence is missing because it is difficult to measure?
- Could a threshold or constraint override the numerical result?
- Who receives the benefits and who bears the costs or risk?
- When should the decision be reviewed?
Professional context: Legal, tax, investment, safety, medical, engineering and regulated decisions require qualified, jurisdiction-specific advice.