Satisficing - Revision history

S214147: /* Limitations */

2023-05-08T20:02:54Z

Limitations

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	One of the most important limitations of satisficing - a potential lack of accuracy - was addressed by introducing the concept of illusion of validity, bringing focus to subjective bias while using this decision-making strategy. Although it does not resolve the issue definitively, it is a valuable point of view and context for everyone who needs to make decisions on a daily basis. Another limitation of satisficing is its ambiguity which leads to many different interpretations of this strategy and its execution. With extensive literature on the topic, it is easy to provide a universal definition, but the actual modes of implementation can look very different depending on the approach used. Examples of applying a satisficing strategy in real-world contexts described in this article were significantly simplified to fit into the format of the article, while providing a broader view of what satisficing strategy is and give multiple contexts. Each of those examples in practice is more complex, with potentially multiple stakeholders involved and different objectives to meet. Often, decision-making process will be accompanied by other constrains that were not described. Nevertheless, this condensed form of different applications should provide a practitioner with good intuition on how to apply satisficing strategy when the need for that arise.		One of the most important limitations of satisficing - a potential lack of accuracy - was addressed by introducing the concept of illusion of validity, bringing focus to subjective bias while using this decision-making strategy. Although it does not resolve the issue definitively, it is a valuable point of view and context for everyone who needs to make decisions on a daily basis. Another limitation of satisficing is its ambiguity which leads to many different interpretations of this strategy and its execution. With extensive literature on the topic, it is easy to provide a universal definition, but the actual modes of implementation can look very different depending on the approach used. Examples of applying a satisficing strategy in real-world contexts described in this article were significantly simplified to fit into the format of the article, while providing a broader view of what satisficing strategy is and give multiple contexts. Each of those examples in practice is more complex, with potentially multiple stakeholders involved and different objectives to meet. Often, decision-making process will be accompanied by other constrains that were not described. Nevertheless, this condensed form of different applications should provide a practitioner with good intuition on how to apply satisficing strategy when the need for that arise.

	Satisficing is an appropriate strategy when decisions need to be taken fast and efficiently, as they are only partially contributing to the final outcome. On the other hand, in situations where decisions would have a major impact and excellence is required, this strategy might not be suitable. Using and accommodating such a strategy is also highly dependent on the practitioner, since each person is different and should pick tools and methods that work well for given personality type. Ultimately, satisficing is only one of many decision-making strategies, and within the scope of this article it would not be possible to compare all of them. Managers should know an extensive range of different decision-making models to fit them in the right context <ref name="portfolio1">Portfolio Management: The standard for portfolio management, 4th Edition. 2013.</ref> . Therefore, to get the most of the concept of satisficing, it is advised to familiarise oneself with other decision-making tools and methods from this wiki site in order to choose the most appropriate ones for a given ~~context~~.		Satisficing is an appropriate strategy when decisions need to be taken fast and efficiently, as they are only partially contributing to the final outcome. On the other hand, in situations where decisions would have a major impact and excellence is required, this strategy might not be suitable. Using and accommodating such a strategy is also highly dependent on the practitioner, since each person is different and should pick tools and methods that work well for given personality type. Ultimately, satisficing is only one of many decision-making strategies, and within the scope of this article it would not be possible to compare all of them. Managers should know an extensive range of different decision-making models to fit them in the right context <ref name="portfolio1">Portfolio Management: The standard for portfolio management, 4th Edition. 2013.</ref> . Therefore, to get the most of the concept of satisficing, it is advised to familiarise oneself with other decision-making tools and methods from this wiki site in order to choose the most appropriate ones for a given situation.

	== Annotated bibliography ==		== Annotated bibliography ==

S214147: /* Abstract */

2023-05-08T19:56:38Z

Abstract

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	== Abstract==		== Abstract==
	This article investigates the satisficing strategy for decision-making processes in a project, program and portfolio management perspective, and discusses one of its limitation, which is accuracy or lack thereof. The name of this strategy stems from the merging of two words: satisfy and suffice, with the main purpose being to speed up the decision-making process by picking the first acceptable solution that meets the set objectives ‎<ref name="Herbert 1"> Simon Herbert A and Chester I Barnard. Administrative Behavior : A Study of Decision-Making Processes in Administrative Organization. Macmillan 1947.</ref>. In this article, both efficiency and accuracy of the satisficing strategy are taken into account to provide a more comprehensive view of the satisficing strategy through introduction of the Illusion of Validity concept. First, the main idea of it is drawn through the explanation of definitions and theory, and providing a short historical context. Then, a detailed example of employing a satisficing strategy in project management is described, being supported with another project management tool called Schedule Performance Index (SPI). Further examples of applications are discussed in the context of project (by expanding on the first example through adding a financial context), program (through introduction of efficiency to daily operations) and portfolio (as the mean to enable diversification) management. Limitations of the tool are discussed through describing environments in which satisficing is suitable to use and where it is not. Lastly, annotated bibliography is presented with further recommendations to read. Ultimately, the main purpose of this article is to equip practitioners with relevant knowledge about the strategy by providing a comprehensive picture of what satisficing really is and how it can be used in different contexts.		This article investigates the satisficing strategy for decision-making processes in a project, program and portfolio management perspective, and discusses one of its limitation, which is accuracy or lack thereof. The name of this strategy stems from the merging of two words: satisfy and suffice, with the main purpose being to speed up the decision-making process by picking the first acceptable solution that meets the set objectives ‎<ref name="Herbert 1"> Simon Herbert A and Chester I Barnard. Administrative Behavior : A Study of Decision-Making Processes in Administrative Organization. Macmillan 1947.</ref>. In this article, both efficiency and accuracy of the satisficing strategy are taken into account to provide a more comprehensive view of the satisficing strategy through introduction of the Illusion of Validity concept. First, the main idea of it is drawn through the explanation of definitions and theory, and providing a short historical context. Then, a detailed example of employing a satisficing strategy in project management is described, being supported with another project management tool called Schedule Performance Index (SPI). Further examples of applications are discussed in the context of project (by expanding on the first example through adding a financial context), program (through introduction of efficiency to daily operations) and portfolio (as the mean to enable diversification) management. Limitations of the tool are discussed through describing environments in which satisficing is suitable to use and where it is not. Lastly, annotated bibliography is presented with further recommendations to read. Ultimately, the main purpose of this article is to equip practitioners with relevant knowledge about the strategy by providing a comprehensive picture of what satisficing really is and how it can be used in a different contexts.

	== Definition ==		== Definition ==

S214147: /* Abstract */

2023-05-08T19:56:22Z

Abstract

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	== Abstract==		== Abstract==
	This article investigates the satisficing strategy for decision-making processes in a project, program and portfolio management perspective, and discusses one of its limitation, which is accuracy or lack thereof. The name of this strategy stems from the merging of two words: satisfy and suffice, with the main purpose being to speed up the decision-making process by picking the first acceptable solution that meets the set objectives ‎<ref name="Herbert 1"> Simon Herbert A and Chester I Barnard. Administrative Behavior : A Study of Decision-Making Processes in Administrative Organization. Macmillan 1947.</ref>. In this article, both efficiency and accuracy of the satisficing strategy are taken into account to provide a more comprehensive view of the satisficing strategy through introduction of the Illusion of Validity concept. First, the main idea of it is drawn through the explanation of definitions and theory, and providing a short historical context. Then, a detailed example of employing a satisficing strategy in project management is described, being supported with another project management tool called Schedule Performance Index (SPI). Further examples of applications are discussed in the context of project (by expanding on the first example through adding a financial context), program (through introduction of efficiency to daily operations) and portfolio (as the mean to enable diversification) management. Limitations of the tool are discussed through describing environments in which satisficing is suitable to use and where it is not. Lastly, annotated bibliography is presented with further recommendations to read. ~~Main~~ purpose of this article is to equip practitioners with relevant knowledge about the strategy by providing a comprehensive picture of what satisficing really is and how it can be used in different contexts.		This article investigates the satisficing strategy for decision-making processes in a project, program and portfolio management perspective, and discusses one of its limitation, which is accuracy or lack thereof. The name of this strategy stems from the merging of two words: satisfy and suffice, with the main purpose being to speed up the decision-making process by picking the first acceptable solution that meets the set objectives ‎<ref name="Herbert 1"> Simon Herbert A and Chester I Barnard. Administrative Behavior : A Study of Decision-Making Processes in Administrative Organization. Macmillan 1947.</ref>. In this article, both efficiency and accuracy of the satisficing strategy are taken into account to provide a more comprehensive view of the satisficing strategy through introduction of the Illusion of Validity concept. First, the main idea of it is drawn through the explanation of definitions and theory, and providing a short historical context. Then, a detailed example of employing a satisficing strategy in project management is described, being supported with another project management tool called Schedule Performance Index (SPI). Further examples of applications are discussed in the context of project (by expanding on the first example through adding a financial context), program (through introduction of efficiency to daily operations) and portfolio (as the mean to enable diversification) management. Limitations of the tool are discussed through describing environments in which satisficing is suitable to use and where it is not. Lastly, annotated bibliography is presented with further recommendations to read. Ultimately, the main purpose of this article is to equip practitioners with relevant knowledge about the strategy by providing a comprehensive picture of what satisficing really is and how it can be used in different contexts.

	== Definition ==		== Definition ==

S214147: /* Abstract */

2023-05-08T19:55:25Z

Abstract

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	== Abstract==		== Abstract==
	This article investigates the satisficing strategy for decision-making processes in a project, program and portfolio management perspective, and discusses one of its limitation, which is accuracy or lack thereof. The name of this strategy stems from the merging of two words: satisfy and suffice, with the main purpose being to speed up the decision-making process by picking the first acceptable solution that meets the set objectives ‎<ref name="Herbert 1"> Simon Herbert A and Chester I Barnard. Administrative Behavior : A Study of Decision-Making Processes in Administrative Organization. Macmillan 1947.</ref>. In this article, both efficiency and accuracy of the satisficing strategy are taken into account to provide a more comprehensive view of the satisficing strategy through introduction of the Illusion of Validity concept. First, the main idea of it is drawn through the explanation of definitions and theory, and providing a short historical context. Then, a detailed example of employing a satisficing strategy in project management is described, being supported with another project management tool called Schedule Performance Index (SPI). Further examples of applications are discussed in the context of project (by expanding on the first example through adding a financial context), program (through introduction of efficiency ~~benefit~~) and portfolio (as a mean to enable diversification) management. Limitations of the tool are discussed through describing environments in which satisficing is suitable to use and where it is not. Lastly, annotated bibliography is presented with further recommendations to read. Main purpose of this article is to equip practitioners with relevant knowledge about the strategy by providing a comprehensive picture of what satisficing really is and how it can be used in different contexts.		This article investigates the satisficing strategy for decision-making processes in a project, program and portfolio management perspective, and discusses one of its limitation, which is accuracy or lack thereof. The name of this strategy stems from the merging of two words: satisfy and suffice, with the main purpose being to speed up the decision-making process by picking the first acceptable solution that meets the set objectives ‎<ref name="Herbert 1"> Simon Herbert A and Chester I Barnard. Administrative Behavior : A Study of Decision-Making Processes in Administrative Organization. Macmillan 1947.</ref>. In this article, both efficiency and accuracy of the satisficing strategy are taken into account to provide a more comprehensive view of the satisficing strategy through introduction of the Illusion of Validity concept. First, the main idea of it is drawn through the explanation of definitions and theory, and providing a short historical context. Then, a detailed example of employing a satisficing strategy in project management is described, being supported with another project management tool called Schedule Performance Index (SPI). Further examples of applications are discussed in the context of project (by expanding on the first example through adding a financial context), program (through introduction of efficiency to daily operations) and portfolio (as the mean to enable diversification) management. Limitations of the tool are discussed through describing environments in which satisficing is suitable to use and where it is not. Lastly, annotated bibliography is presented with further recommendations to read. Main purpose of this article is to equip practitioners with relevant knowledge about the strategy by providing a comprehensive picture of what satisficing really is and how it can be used in different contexts.

	== Definition ==		== Definition ==

S214147: /* Abstract */

2023-05-08T19:54:38Z

Abstract

← Older revision		Revision as of 19:54, 8 May 2023
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	== Abstract==		== Abstract==
	This article investigates the satisficing strategy for decision-making processes in a project, program and portfolio management perspective, and discusses one of its limitation, which is accuracy or lack thereof. The name of this strategy stems from the merging of two words: satisfy and suffice, with the main purpose being to speed up the decision-making process by picking the first acceptable solution that meets the set objectives ‎<ref name="Herbert 1"> Simon Herbert A and Chester I Barnard. Administrative Behavior : A Study of Decision-Making Processes in Administrative Organization. Macmillan 1947.</ref>. In this article, both efficiency and accuracy of the satisficing strategy are taken into account to provide a more comprehensive view of the satisficing strategy through introduction of the Illusion of Validity concept. First, the main idea of it is drawn through the explanation of definitions and theory, and providing a short historical context. Then, a detailed example of employing a satisficing strategy in project management is described, being supported with another project management tool called Schedule Performance Index (SPI). Further examples of applications are discussed in the context of project (by expanding on first example by adding a financial context), program (through introduction of efficiency benefit) and portfolio (as a mean to enable diversification) management. Limitations of the tool are discussed through describing environments in which satisficing is suitable to use and where it is not. Lastly, annotated bibliography is presented with further recommendations to read. Main purpose of this article is to equip practitioners with relevant knowledge about the strategy by providing a comprehensive picture of what satisficing really is and how it can be used in different contexts.		This article investigates the satisficing strategy for decision-making processes in a project, program and portfolio management perspective, and discusses one of its limitation, which is accuracy or lack thereof. The name of this strategy stems from the merging of two words: satisfy and suffice, with the main purpose being to speed up the decision-making process by picking the first acceptable solution that meets the set objectives ‎<ref name="Herbert 1"> Simon Herbert A and Chester I Barnard. Administrative Behavior : A Study of Decision-Making Processes in Administrative Organization. Macmillan 1947.</ref>. In this article, both efficiency and accuracy of the satisficing strategy are taken into account to provide a more comprehensive view of the satisficing strategy through introduction of the Illusion of Validity concept. First, the main idea of it is drawn through the explanation of definitions and theory, and providing a short historical context. Then, a detailed example of employing a satisficing strategy in project management is described, being supported with another project management tool called Schedule Performance Index (SPI). Further examples of applications are discussed in the context of project (by expanding on the first example through adding a financial context), program (through introduction of efficiency benefit) and portfolio (as a mean to enable diversification) management. Limitations of the tool are discussed through describing environments in which satisficing is suitable to use and where it is not. Lastly, annotated bibliography is presented with further recommendations to read. Main purpose of this article is to equip practitioners with relevant knowledge about the strategy by providing a comprehensive picture of what satisficing really is and how it can be used in different contexts.

	== Definition ==		== Definition ==

S214147: /* Annotated bibliography */

2023-05-08T19:52:01Z

Annotated bibliography

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	== Annotated bibliography ==		== Annotated bibliography ==
	'''Simon Herbert A and Chester I Barnard. Administrative Behavior : A Study of Decision-Making Processes in Administrative Organization. Macmillan 1947.''' - It is a first publication, where satisficing was defined by Simon Herbert. It is the foundation for all the succeeding research on the topic. Regardless of its age, this paper is still valuable source of information for indviduals working within a topic of administrative organisation and management. Authors argue that decision-making is critical process for effective management.		'''Simon Herbert A and Chester I Barnard. Administrative Behavior : A Study of Decision-Making Processes in Administrative Organization. Macmillan 1947.''' - is a first publication, where satisficing was defined by Simon Herbert. It is the foundation for all the succeeding research on the topic. Regardless of its age, this paper is still valuable source of information for indviduals working within a topic of administrative organisation and management. Authors argue that decision-making is critical process for effective management.

	'''Project Management: "Managing Successful Projects with PRINCE2" 6th Edition. 2017.''' - primary source of information about projects, which was used throughout the writing process of the whole article to ensure that it is relevant for practitioners. It provides clearly outlined information and state of the art theory on how to successfully run projects. On top of that, British Standards for both program and portfolio management has shaped the knowledge and provided necessary information that was used to applied while writing the article above.		'''Project Management: "Managing Successful Projects with PRINCE2" 6th Edition. 2017.''' - is a primary source of information about projects, which was used throughout the writing process of the whole article to ensure that it is relevant for practitioners. It provides clearly outlined information and state of the art theory on how to successfully run projects. On top of that, British Standards for both program and portfolio management has shaped the knowledge and provided necessary information that was used to applied while writing the article above.

	'''Daniel Kahneman. Thinking, fast and slow. Farrar, Straus and Giroux. 2011.''' - main inspiration and source of the Illusion of Validity theory, which helped to expand further on the satisficing topic by addressing limitations of humans from behavioristic point of view in decision-making processes. It provides great information for any individual, regardless of profession. To learn more about it visit this wiki article [http://wiki.doing-projects.org/index.php/Kahneman_-_Two_Thinking_Systems].		'''Daniel Kahneman. Thinking, fast and slow. Farrar, Straus and Giroux. 2011.''' - is a main inspiration and source of the Illusion of Validity theory, which helped to expand further on the satisficing topic by addressing limitations of humans from behavioristic point of view in decision-making processes. It provides great information for any individual, regardless of profession. To learn more about it visit this wiki article [http://wiki.doing-projects.org/index.php/Kahneman_-_Two_Thinking_Systems].

	== References ==		== References ==
	<references>		<references>

S214147: /* Application in project, program and portfolio management */

2023-05-08T19:51:31Z

Application in project, program and portfolio management

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	'''In a program management''', an implementation of satisficing strategy can lead to fulfilling an efficiency benefit. A program manager could organise a workshop for project managers within the department and teach the core principles and good practices of using the satisficing strategy in decision-making process, with clear instructions how it should be performed to support the organisation's objectives. Successful implementation could significantly increase efficiency, as decisions would be made faster which in the broad perspective leads to resource saving. Outputs of a decision would be sufficient and satisfactory to continue different projects according to the plan, and faster decision-making would decrease potential delays in the process, as well as take the weight of the project managers’ shoulders who would follow simple principles in decision-making and avoid unnecessary maximisation that does not create value in the broad organisational context.		'''In a program management''', an implementation of satisficing strategy can lead to fulfilling an efficiency benefit. A program manager could organise a workshop for project managers within the department and teach the core principles and good practices of using the satisficing strategy in decision-making process, with clear instructions how it should be performed to support the organisation's objectives. Successful implementation could significantly increase efficiency, as decisions would be made faster which in the broad perspective leads to resource saving. Outputs of a decision would be sufficient and satisfactory to continue different projects according to the plan, and faster decision-making would decrease potential delays in the process, as well as take the weight of the project managers’ shoulders who would follow simple principles in decision-making and avoid unnecessary maximisation that does not create value in the broad organisational context.

	'''In a portfolio management''', a satisficing strategy can be used as a means to diversify the portfolio through a selection of programs that are meeting most, but not all, of the criteria. With lowering the aspiration level, the selection of possible solutions grows, which directly corresponds to higher diversification. Such a diversification can lead to the same expected return on investment while lowering its risk<ref name="portfolio1">Portfolio Management: The standard for portfolio management, 4th Edition. 2013.</ref>. Size of portfolio and financial impact should also be taken into account. Satisficing is more suitable for environments where things need to be pushed forward and be just ‘good enough’. Therefore, it is not always viable to pursue a satisficing strategy when stakes are high as other decision-making techniques can accommodate such a situation better.		'''In a portfolio management''', a satisficing strategy can be used as a means to diversify the portfolio through a selection of programs that are meeting most, but not all, of the criteria. With lowering the aspiration level, the selection of possible solutions grows, which directly corresponds to higher diversification. Such a diversification can lead to the same expected return on investment while lowering its risk <ref name="portfolio1">Portfolio Management: The standard for portfolio management, 4th Edition. 2013.</ref>. Size of portfolio and financial impact should also be taken into account. Satisficing is more suitable for environments where things need to be pushed forward and be just ‘good enough’. Therefore, it is not always viable to pursue a satisficing strategy when stakes are high as other decision-making techniques can accommodate such a situation better.

	== Limitations ==		== Limitations ==

S214147: /* Balancing efficiency and accuracy: Illusion of validity in Satisficing */

2023-05-08T19:51:02Z

Balancing efficiency and accuracy: Illusion of validity in Satisficing

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	To account for this hindrance, this article expands the satisficing strategy with the theory of Illusion of Validity.		To account for this hindrance, this article expands the satisficing strategy with the theory of Illusion of Validity.

	Defined by Kahneman and Tversky, it is a cognitive bias that occurs when people overestimate the accuracy of judgement based on intuition and subjective perception of the world <ref name="Daniel"> Daniel Kahnemann and Amos Tversky. On the psychology of prediction. 1973. </ref>. Illusion of validity is especially strong when an individual specialises in a certain area. With knowledge gained on the topic, the overconfidence in one’s prediction and evaluation of reality increases. It is difficult for us to accept the limits of our ability to predict the outcomes because of our bias to create and believe coherent stories from the past. <ref name="Swan"> Taleb, N. N.The black swan: the impact of the highly improbable.2nd ed., Random trade pbk. 2010.</ref>. It is easy to omit the fact that the world is a difficult and complex reality, and when overconfidence comes into place, decisions become inaccurate. Moreover, this phenomenon is strengthened by a powerful professional culture present in almost any work environment, where like-minded individuals support each other in believing in this illusion of validity. <ref name="Daniel2"> Daniel Kahneman. Thinking, fast and slow. Farrar, Straus and Giroux. 2011. </ref>. This makes it even harder to evaluate and counteract those events. Project, program or portfolio managers can often create a coherent version of the story, based on which aspiration levels are set. Then, when such a story and principles (to set aspiration levels for satisficing strategy) are presented to stakeholders, there are no reasons to undermine them.		Defined by Kahneman and Tversky, it is a cognitive bias that occurs when people overestimate the accuracy of judgement based on intuition and subjective perception of the world <ref name="Daniel"> Daniel Kahnemann and Amos Tversky. On the psychology of prediction. 1973. </ref>. Illusion of validity is especially strong when an individual specialises in a certain area. With knowledge gained on the topic, the overconfidence in one’s prediction and evaluation of reality increases. It is difficult for us to accept the limits of our ability to predict the outcomes because of our bias to create and believe coherent stories from the past <ref name="Swan"> Taleb, N. N.The black swan: the impact of the highly improbable.2nd ed., Random trade pbk. 2010.</ref>. It is easy to omit the fact that the world is a difficult and complex reality, and when overconfidence comes into place, decisions become inaccurate. Moreover, this phenomenon is strengthened by a powerful professional culture present in almost any work environment, where like-minded individuals support each other in believing in this illusion of validity <ref name="Daniel2"> Daniel Kahneman. Thinking, fast and slow. Farrar, Straus and Giroux. 2011. </ref>. This makes it even harder to evaluate and counteract those events. Project, program or portfolio managers can often create a coherent version of the story, based on which aspiration levels are set. Then, when such a story and principles (to set aspiration levels for satisficing strategy) are presented to stakeholders, there are no reasons to undermine them.
	To introduce efficiency to the decision-making process, an easy to follow 3-step guide for satisficing strategy was introduced. However, it is not the case while accounting for accuracy. Kahneman <ref name="Daniel2"> Daniel Kahneman. Thinking, fast and slow. Farrar, Straus and Giroux. 2011. </ref> argues that becoming aware of the bias coming from the Illusion of Validity does not solve the issue, and neither does discussing the decision with individuals from the professional environment. The presented concept of Illusion of Validity is only one aspect of extensive studies in a field of cognitive biases and heuristics. Therefore, it is not possible to provide a simple instruction on how to ensure a sufficient level of accuracy while implementing the satsificing strategy. Nevertheless, it can be highly beneficial for project, program and portfolio managers to become familiar with such literature to become aware of one’s own limitations.		To introduce efficiency to the decision-making process, an easy to follow 3-step guide for satisficing strategy was introduced. However, it is not the case while accounting for accuracy. Kahneman <ref name="Daniel2"> Daniel Kahneman. Thinking, fast and slow. Farrar, Straus and Giroux. 2011. </ref> argues that becoming aware of the bias coming from the Illusion of Validity does not solve the issue, and neither does discussing the decision with individuals from the professional environment. The presented concept of Illusion of Validity is only one aspect of extensive studies in a field of cognitive biases and heuristics. Therefore, it is not possible to provide a simple instruction on how to ensure a sufficient level of accuracy while implementing the satsificing strategy. Nevertheless, it can be highly beneficial for project, program and portfolio managers to become familiar with such literature to become aware of one’s own limitations.

S214147: /* Limitations */

2023-05-08T19:49:46Z

Limitations

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	== Limitations ==		== Limitations ==
	One of the most important limitations of satisficing - a potential lack of accuracy - was addressed by introducing the concept of illusion of validity, bringing focus to subjective bias while using this decision-making strategy. Although it does not resolve the issue definitively, it is a valuable point of view and context for everyone who needs to make decisions on a daily basis. Another limitation of satisficing is its ambiguity which leads to many different interpretations of this strategy and its execution. With extensive literature on the topic, it is easy to provide a universal definition, but the actual modes of implementation can look very different depending on the approach used.
			One of the most important limitations of satisficing - a potential lack of accuracy - was addressed by introducing the concept of illusion of validity, bringing focus to subjective bias while using this decision-making strategy. Although it does not resolve the issue definitively, it is a valuable point of view and context for everyone who needs to make decisions on a daily basis. Another limitation of satisficing is its ambiguity which leads to many different interpretations of this strategy and its execution. With extensive literature on the topic, it is easy to provide a universal definition, but the actual modes of implementation can look very different depending on the approach used. Examples of applying a satisficing strategy in real-world contexts described in this article were significantly simplified to fit into the format of the article, while providing a broader view of what satisficing strategy is and give multiple contexts. Each of those examples in practice is more complex, with potentially multiple stakeholders involved and different objectives to meet. Often, decision-making process will be accompanied by other constrains that were not described. Nevertheless, this condensed form of different applications should provide a practitioner with good intuition on how to apply satisficing strategy when the need for that arise.

	Satisficing is an appropriate strategy when decisions need to be taken fast and efficiently, as they are only partially contributing to the final outcome. On the other hand, in situations where decisions would have a major impact and excellence is required, this strategy might not be suitable. Using and accommodating such a strategy is also highly dependent on the practitioner, since each person is different and should pick tools and methods that work well for given personality type. Ultimately, satisficing is only one of many decision-making strategies, and within the scope of this article it would not be possible to compare all of them. Managers should know an extensive range of different decision-making models to fit them in the right context <ref name="portfolio1">Portfolio Management: The standard for portfolio management, 4th Edition. 2013.</ref> . Therefore, to get the most of the concept of satisficing, it is advised to familiarise oneself with other decision-making tools and methods from this wiki site in order to choose the most appropriate ones for a given context.		Satisficing is an appropriate strategy when decisions need to be taken fast and efficiently, as they are only partially contributing to the final outcome. On the other hand, in situations where decisions would have a major impact and excellence is required, this strategy might not be suitable. Using and accommodating such a strategy is also highly dependent on the practitioner, since each person is different and should pick tools and methods that work well for given personality type. Ultimately, satisficing is only one of many decision-making strategies, and within the scope of this article it would not be possible to compare all of them. Managers should know an extensive range of different decision-making models to fit them in the right context <ref name="portfolio1">Portfolio Management: The standard for portfolio management, 4th Edition. 2013.</ref> . Therefore, to get the most of the concept of satisficing, it is advised to familiarise oneself with other decision-making tools and methods from this wiki site in order to choose the most appropriate ones for a given context.

S214147: /* Annotated bibliography */

2023-05-08T19:40:19Z

Annotated bibliography

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	'''Simon Herbert A and Chester I Barnard. Administrative Behavior : A Study of Decision-Making Processes in Administrative Organization. Macmillan 1947.''' - It is a first publication, where satisficing was defined by Simon Herbert. It is the foundation for all the succeeding research on the topic. Regardless of its age, this paper is still valuable source of information for indviduals working within a topic of administrative organisation and management. Authors argue that decision-making is critical process for effective management.		'''Simon Herbert A and Chester I Barnard. Administrative Behavior : A Study of Decision-Making Processes in Administrative Organization. Macmillan 1947.''' - It is a first publication, where satisficing was defined by Simon Herbert. It is the foundation for all the succeeding research on the topic. Regardless of its age, this paper is still valuable source of information for indviduals working within a topic of administrative organisation and management. Authors argue that decision-making is critical process for effective management.

	'''Project Management: "Managing Successful Projects with PRINCE2" 6th Edition. 2017.''' - primary source of information about projects, which was used throughout the writing process of the whole article to ensure that it is relevant for practitioners. It provides clearly outlined information and state of the art theory on how to successfully run projects. On top of that, British Standards for program and portfolio management has shaped the knowledge and ~~gave~~ necessary information that was used to ~~write~~ the article above.		'''Project Management: "Managing Successful Projects with PRINCE2" 6th Edition. 2017.''' - primary source of information about projects, which was used throughout the writing process of the whole article to ensure that it is relevant for practitioners. It provides clearly outlined information and state of the art theory on how to successfully run projects. On top of that, British Standards for both program and portfolio management has shaped the knowledge and provided necessary information that was used to applied while writing the article above.

	'''Daniel Kahneman. Thinking, fast and slow. Farrar, Straus and Giroux. 2011.''' - main inspiration and source of the Illusion of Validity theory, which helped to expand further on the satisficing topic by addressing limitations of humans from behavioristic point of view in decision-making processes. It provides great information for any individual, regardless of profession. To learn more about it visit this wiki article [http://wiki.doing-projects.org/index.php/Kahneman_-_Two_Thinking_Systems].		'''Daniel Kahneman. Thinking, fast and slow. Farrar, Straus and Giroux. 2011.''' - main inspiration and source of the Illusion of Validity theory, which helped to expand further on the satisficing topic by addressing limitations of humans from behavioristic point of view in decision-making processes. It provides great information for any individual, regardless of profession. To learn more about it visit this wiki article [http://wiki.doing-projects.org/index.php/Kahneman_-_Two_Thinking_Systems].